Summary
General Electric (GE) announced a significant divestiture on February 12, 2013, agreeing to sell its remaining 49% stake in the NBCUniversal joint venture to Comcast. This strategic move will generate substantial cash and debt proceeds for GE, amounting to approximately $12.0 billion in cash and $4.0 billion in guaranteed debt, plus $0.7 billion in preferred stock. The transaction, which is expected to close by the end of the first quarter of 2013, marks GE's complete exit from its media and entertainment assets held within NBCUniversal. In conjunction with the sale of its NBCUniversal stake, GE will also sell certain real estate assets, including studio and office space at 30 Rockefeller Plaza and CNBC's headquarters, to NBCUniversal for approximately $1.4 billion in cash. These transactions are subject to standard closing conditions and represent a pivotal step for GE in streamlining its operations and focusing on its core industrial businesses. Investors should note the significant cash infusion and the company's continued strategic shift away from non-core assets.
Key Highlights
- 1GE to sell its remaining 49% stake in NBCUniversal to Comcast.
- 2Transaction valued at approximately $12.0 billion cash, $4.0 billion in Comcast guaranteed debt, and $0.7 billion in preferred stock.
- 3GE will also sell real estate assets (30 Rockefeller Plaza space and CNBC HQ) for $1.4 billion cash.
- 4Transaction expected to close before the end of Q1 2013.
- 5Deal is subject to customary closing conditions but not a financing condition.
- 6This divestiture signifies GE's exit from its media and entertainment assets.
- 7The net proceeds will provide GE with significant liquidity and allow for a focus on core industrial businesses.