NBC to Buy Universal?
There's finally a winner in the Vivendi auction for Universal Studios -- and it is the NBC television network.
Universal's theme parks appear to be on their way to having a new owner -- the NBC television network and its parent, General Electric.
GE will own 80 percent of a new company combining NBC and Universal Studios, with Vivendi owning the other 20 percent. Vivendi also gets a $3.8 billion "cash consideration," plus $1.6 billion in debt paid off.
Of course, the deal's not done yet. GE and Vivendi must work out the details and finish the contract. But Vivendi's board has given preliminary approval to a deal with GE/NBC.
So what will become of the theme parks? That is just one of the many "details" that remains to be worked out. But, as has been mentioned before, a combined Universal/NBC would do well to have theme parks as a promotional resource for its entertainment properties, the way the Disney theme parks help Disney/ABC.
Universal does have some history promoting NBC in its theme parks, with annual appearances by NBC soap opera stars at Universal Orlando, an event designed to counter the ABC Super Soap events at Walt Disney World's Disney-MGM Studios.
From Ben Mills
Posted September 2, 2003 at 3:40 PM
Details, LOL. It's funny isn't it? A new E-ticket costs more than most films, yet it's determined as small "details".
Well, jeez! Here I've carried this soap opera for a year and I don't get to cover the finale? At least the thing is finally OVER! Knock on wood...
From Ben Mills
Posted September 2, 2003 at 3:56 PM
I'm pretty certain this isn't the end. Not as long as Vivendi's involved, anyway.
Hey, I played it straight, Kevin. I expect many catty comments and other insight in the Flume tomorrow....
brace yourself guys, get ready for six flags studios and six flags Islands of adventure--it's coming, I can feel it!
From Kenny Hitt
Posted September 2, 2003 at 6:42 PM
Well, this is a good thing I think. Hey, if nothing else...LAW & ORDER: THE RIDE!!!
Let the speculation begin:
Universal Orlando's NBC Studios Theme Park.
Selling off the theme parks might be the right thing to do. NBC's immediate need would be to reduce the assumed debt that comes with the acquisition. Longer term, NBC and GE, may have zero interest in running theme parks. Their money might be better spent making it somebody else's problem and collecting the licensing fees when the parks do well.
I have no idea what you're talking about.
What's going on with "it's not over..."?
What makes my heart sink is this realization: It seems to me that the only reason NBC would decide to sell the Universal parks is if they determined that they can no longer generate substantial revenues.
Beyond all the soothsaying about the future of the economy and tourism, THAT would be a cold splash of reality for Universal, Disney and anyone who might be interested in investing in the new Hard Rock Park.
Sigh...
When you aren't on some sort of rampage, you can actually make some good observations, THC. Problem is, the Universal parks AREN'T big money making operations. Don't sue me for having the wrong number, but I believe they accounted for about 1% of Vivendi's revenue. Disney's parks account for more than 40% of theirs, and they are a much larger company.
I believe the way NBC would look at it is that television can make you billions a year. Movies can make you billions a year. The theme parks making a few hundred million is chump change. Hopefully they will come to understand that the Universal parks are really a stable asset, unlike television or movies, and will soon realize the opportunities there are beyond the money.
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