Satellite-television providers are likely to view Comcast’s purchase of NBC Universal as a competitive threat and will lobby for regulatory denial of the deal.
Analysts said the proposed $13.75 billion deal for a controlling stake in NBC will give cable giant Comcast power in setting fees for NBC programming paid by satellite rivals Dish Network and DirecTV.
“It really changes the lay of the land significantly for the satellite companies,” said senior analyst Jimmy Schaeffler of communications-research firm Carmel Group. “For them to do a deal with Comcast (to pay for NBC programming and cable channels) is going to be awkward. It’s putting money into the pocket of a competitor.”
The deal will give Comcast, the nation’s largest cable-TV operator, control of the NBC and Telemundo broadcast networks; 26 local television stations; popular cable channels, including CNBC, Bravo and Oxygen; the Universal Pictures movie studio and theme parks; and a share of Hulu, a supplier of online television programming.
Where Comcast previously had been aligned with competitors Dish and DirecTV in trying to negotiate low fees to carry networks and cable channels on their distribution systems, it now will be in a position to set some of those costs.
Douglas County-based Dish Network declined to comment Thursday on the Comcast deal, but recent remarks by chief executive Charlie Ergen make the company’s position clear.
“Obviously, we’d have concerns with anybody who owns programming and delivery distribution,” Ergen said last month in a conference call with analysts.
Ergen joked in the call that he may consider renting an extended-stay hotel room in Washington, D.C., to be present for what is expected to be a months-long process of hearings and testimony before Congress and federal regulatory agencies on the Comcast deal.
DirecTV, controlled by John Malone of Douglas County-based Liberty Media, said it is “evaluating” the transaction.
The deal “certainly creates significant media concentration,” said Susan Eid, senior vice president of government affairs for DirecTV. “We expect the government will closely scrutinize this deal to protect consumers, choice and competition.”
In a conference call Thursday, Comcast chief executive Brian Roberts said, “We take very serious the public-interest responsibilities.” He said he expects to receive regulatory approval within nine to 12 months.
But receiving that approval could be a hurdle under the Obama administration, which will look more closely at antitrust concerns, Schaeffler said.
“In the George Bush White House, this would have flown right through,” he said. “But in the Barack Obama White House, it’s going to get a much closer look.”
Steve Raabe: 303-954-1948 or sraabe@denverpost.com
THE DEAL
Comcast takes majority ownership of NBC Universal from General Electric for more than $30 billion.
THE SETUP
GE, which owned the network for more than two decades, paves the way by buying Vivendi’s 20 percent stake in NBC Universal for $5.8 billion.
THE DETAILS
Comcast pays GE nearly $6.5 billion and contributes programming valued at $7.25 billion for a 51 percent stake in the joint venture. NBC Universal borrows $9.1 billion to give to GE.
THE SWEETENER
To soothe concerns among its shareholders, Comcast announces a 40 percent dividend increase and says it will complete its $3.6 billion stock-buyback effort during the next three years.
