Comcast Corporation (NASDAQ:CMCSA) (NASDAQ:CMCSK) is the now the sole owner of NBCUniversal Holdings after purchasing the 49 percent stake of General Electric Company (NYSE:GE) for $16.7 billion based on the Form 8-K filing of the company with the Securities and Exchange Commission (SEC) on Tuesday, March 19, 2013.
Based on the regulatory filing, Comcast Corporation (NASDAQ:CMCSA) (NASDAQ:CMCSK) funded the transaction by spending $10 billion in cash (approximately $3.2 billion came from NBCUniversal Media LLC, $725 million in preferred stock issued by NBC Universal Enterprises, $750 million in cash funded through its commercial paper program, and $1.25 billion in cash from NBCUniversal Enterprises’ credit facility.
According to Comcast Corporation, it now controls NBCUniversal Enterprises’ capital stock except its preferred stock. However, the company said that a subsidiary of General Electric Company (NYSE:GE) agreed to sell all of its Enterprise preferred stock in a private placement to unaffiliated third parties.
The company said it owned 96% of the common units of NBCUniversal Holdings, which owns 100% of the equity of NBC Universal. NBC Universal Enterprise owns 4% of the common units and all of the preferred stock (724,700 shares) of NBCUniversal Holdings.
Comcast Corporation (NASDAQ:CMCSA) (NASDAQ:CMCSK) indicated in its filing that the owners of Enterprise preferred stock are entitled to quarterly dividend payments at a rate of 5.25% annually on the liquidation preference, and they have a put right during 30-day window starting on March 19, 2020 and on each third anniversary of the same date thereafter.
NBCUniversal Enterprise also have a call right on all of its preferred stock during the 30-day window starting March 19, 2012 and on each third anniversary of the same date onward Comcast will appoint three directors to the four-member board of NBCUniversal Enterprise.
Furthermore, Comcast said it owned some of the properties of NBCUniversal at its headquarters at Rockefeller Plaza in New York, as well as the recently purchased CNBC headquarters in Englewood Cliffs, New Jersey.
Comcast Corporation (NASDAQ:CMCSA) (NASDAQ:CMCSK) acquired its initial 51% stake in NBCUniversal from General Electric Company (NYSE:GE) last January 2011 for $13.8 billion. Under the transaction, GE has the authority to sell its remaining interest in NBCUniversal until 2014. In July 2012, NBCUniversal agreed to sell its 15% stake in A&E Television Networks for $3 billion to be able to acquire the remaining 49% interest of NBC Universal from General Electric Company (NYSE:GE).