US government approves Comcast’s NBC Universal takeover

Regulatory officials in the United States have granted approval for media giant NBC Universal to be acquired by telecommunications group Comcast, although the deal has come with several conditions. The Federal Communications Commission and the Justice Department have finalised their year-long investigation, but have said there are rules Comcast must follow as it integrates NBC’s […]

Patrick Stafford 19 January, 2011

Regulatory officials in the United States have granted approval for media giant NBC Universal to be acquired by telecommunications group Comcast, although the deal has come with several conditions.

The Federal Communications Commission and the Justice Department have finalised their year-long investigation, but have said there are rules Comcast must follow as it integrates NBC’s own content.

These rules include stipulations Comcast won’t be allowed to withhold NBC programming and regional sports networks from pay TV and online competitors. Additionally, the company will also be required to set aside channels for independent programmers and keep NBC on free-to-air stations.

“The settlement ensures the transaction will not chill the nascent competition posed by online competitors,” Christine Varney, head of the Justice Department’s Antitrust Division told the media in a conference call.

The deal will see Comcast acquire NBC Universal from General Electric for about $US13.75 billion, with Comcast to own about 51% of the joint venture.