Re: Buying NBC

[dan.strassberg@att.net]

I think Uncle Mel has something more up his sleeve than 
is first suggested by his announcement of interest in 
buying NBC--even if it means overpaying. NBC is owned by 
General Electric, the company that has--I believe--the 
largest market capitalization of any company on the New 
York Stock Exchange. GE also has a reputation for having 
the smartest financial management in America. CBS is 
head-over-heels in debt.

What that means is that CBS, which itself has been 
rumored to be for sale, could probably only offer its 
own stock to GE in exchange for NBC. The result is that 
if CBS "acquired" NBC from GE, GE would in effect own 
CBS (or would own a large--most likely controlling--
stake in CBS).

Such a deal just might prove very attractive to GE CEO 
Jack Welch. If Welch thought that by "selling" NBC, GE 
could wind up controlling two of the three largest TV 
networks, he might go for the deal. And Karmazin might 
see himself in a position to succeed Welch, who is 
approaching GE's mandatory retirement age. I think 
Karmazin's ego knows no bounds, and he probably believes 
that he could run GE. Karmazin may be a smart guy, and 
he has proven himself, above all, to be most adept at 
feathering his own nest. But Mel Karmazin is no Jack 
Welch. 
> I just heard a report on the BBC World Service that the head of CBS 
> has said that he would like to buy NBC.  The BBC commentators 
> observed that this would require changes in the rules governing 
> television in the U.S.  They also seemed to think that NBC was ripe for 
> takeover.
> 
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