GE to buy $345 mln of ads from NBC Universal

Dec 04, 2009 By DEBORAH YAO , AP Business Writer

(AP) -- General Electric Co. has promised to buy at least $345 million in advertising from NBC Universal over five years after selling a controlling stake in the entertainment company to Comcast Corp., according to a regulatory filing Friday.

GE pledged to buy at least $59 million worth of ads in the new NBC Universal each year for five years after the sale of a 51 percent stake to , expected to close in about a year. In addition, GE is required to buy $50 million worth of ads in connection with the 2012 , whose rights NBC holds.

Comcast disclosed the details in a filing that also covered terms of GE's divestiture rights for NBC Universal, tax matters, intellectual property and others.

In 2008, GE spent $1.2 billion on advertising across all media outlets, but most of the money went toward marketing of NBC Universal's movies, said TNS Media Intelligence. The regulatory filing did not say whether the $59 million represents an increase or decrease over what it would have spent outside the movie ads.

A separate SEC filing made by GE shows that NBC Universal already has a commitment from lenders for $9.1 billion in loans. NBC Universal is giving that money to GE, which is buying Vivendi SA's 20 percent stake of the entertainment company for $5.8 billion in order to sell a majority stake to Comcast.

On Thursday, Comcast said it would pay GE $6.5 billion in cash and contribute $7.25 billion worth of assets for control of Universal. Regulators are to spend the next year reviewing the deal to create one of the nation's largest entertainment conglomerates rivaling the heft of The Co.

Shares of Comcast, based in Philadelphia, were up 22 cents to $16.13 on Friday. GE, based in Fairfield, Conn., was up 20 cents to $16.20.

©2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Explore further: Why the Sony hack isn't big news in Japan

add to favorites email to friend print save as pdf

Related Stories

GE, Vivendi talks over NBC Universal stretch on

Nov 20, 2009

(AP) -- A deal for Comcast Corp. to buy a controlling stake in NBC Universal and create one of the most powerful media companies in the world is taking longer than expected as the current owners tussle over ...

GE, Vivendi deal paves way for NBC sale to Comcast

Dec 01, 2009

(AP) -- General Electric Co.'s agreement to buy out the rest of NBC Universal paves the way for it to sell control of the TV and movie company to Comcast Corp. in a deal that promises to reshape the entertainment ...

Comcast exploring stake in NBC

Oct 01, 2009

(AP) -- Comcast Corp. is in negotiations to buy 20 percent to 50 percent of NBC Universal, according to people familiar with the negotiations.

Comcast looks to future in bid for NBC Universal

Oct 02, 2009

(AP) -- Years ago, Comcast Corp. CEO Brian Roberts was asked at a conference what kept him awake at night. His answer: A new technology that would severely hurt the cable TV business.

Comcast-NBC deal shows future is in content

Dec 04, 2009

(AP) -- Comcast Corp. is buying control of NBC Universal from GE largely because Comcast wants to own more movies and TV shows. The point is to give it a position of strength if fewer people sign up for its ...

Recommended for you

Why the Sony hack isn't big news in Japan

17 hours ago

Japan's biggest newspaper, Yomiuri Shimbun, featured a story about Sony Corp. on its website Friday. It wasn't about hacking. It was about the company's struggling tablet business.

Sony faces 4th ex-employee lawsuit over hack

22 hours ago

A former director of technology for Sony Pictures Entertainment has sued the company over the data breach that resulted in the online posting of his private financial and personal information.

Sony tells AFP it still plans movie release

23 hours ago

Sony Pictures boss Michael Lynton denied Friday the Hollywood studio has "caved" by canceling the release of "The Interview," and said it still hoped to release the controversial film.

2012 movie massacre hung over 'Interview' decision

Dec 19, 2014

When a group claiming credit for the hacking of Sony Pictures Entertainment threated violence against theaters showing "The Interview" earlier this week, the fate of the movie's big-screen life was all but ...

Clooney slams skittish Hollywood after Sony hack

Dec 19, 2014

Film star George Clooney slammed the Hollywood movie industry for failing to stand up against the cyber threats that prompted Sony Pictures to cancel release of the movie "The Interview."

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.