Former NBC Universal Chairman and CEO Bob Wright speaks with FBN’s Liz Claman on the future of the company, saying that an IPO is not an attractive option in this market and that GE needs to get at least $20 billion out of this deal.
Transcript: Courtesy of Fox Business News
CLAMAN: Got to get to the Comcast-NBC story. You’re the perfect story to have talked about this being on the inside for so long. We hear Comcast for $6 billion in cash and a couple of networks like E-Entertainment and Golf Channel would get operating control of NBC. How for $6 billion and two networks do they get operating control of a network that the price is valued at $30 to $35 billion?
WRIGHT: The answer is how you have to have a minimal view of this. This is a depressed time for media. NBC Universal value is lower today that three or four years ago.
CLAMAN: Is that the time to sell something when it’s that much lower?
WRIGHT: For whatever reason, maybe they worry it won’t get much better. I mean markets will get better and the advertising market will get better. I can’t answer the question why. They’ve been under pressure to do things with GE Capital and everything but GE Capital looks like they’re through the worst of it. I think it’s an issue in people’s minds, I don’t think it’s a real issue. Nevertheless, the stock is putting pressure on it. I think Comcast minimally has to put up $10 billion in asset or cash. They’ ll probably put 60% in cash and asset. GE has to get out of it a minimum of $20 billion. The french have to get out at least $5 billion. They’ll probably want more than that. GE will take out, out of – to get the 20 the 25, what it’s looking for, take out nine or something like that in a loan against NBC Universal. So GE at closing should end up with something close to 10 billion in cash and Comcast should end up with something less or near 10 billion out.
CLAMAN: Does the deal go through or does Vivendi hold it up and say wait, we want an IPO
WRIGHT: I personally think Vivendi will negotiate an acceptable settlement for them. One that Comcast and GE will settle on and I think it will take just a little bit more time
CLAMAN: But I look at this and I think is now really the time
WRIGHT: I don’t think an IPO is such an attractive proposition right in this market either. And I’m sure the French are very sophisticated so they’re not going to miss that
CLAMAN: So not the right time for an IPO. You know when you ran NBC, it was number 1, you have must see TV, here’s what one analyst said to me, the NBC empire has fallen apart since bob wright left. Looking through different lens now, what went wrong in the last couple of years.
WRIGHT: I think it’s been a tougher time for broadcasting. We’re not on a roll, we haven’t been on a roll on the entertainment side where we generate so much money
CLAMAN: Jay Leno, that’s not doing well. Was that a good bet?
WRIGHT: It’s a conservative position
Jay is an extremely well-organized person. He also happens to work harder than any body in television. Good for your 47, 48 weeks a year on the air. that’s like local news. So, overtime you know he’s there and there at 10:00. Not like where is he this week
Is he coming back–
CLAMAN: But law and order SVU did better in that 10 o’clock time slot
WRIGHT: But they don’t do that many episodes. He does his episodes that go for 48 weeks. It’s going to — you make a decision like, Liz, you have to be, have to have a long time view. When news corporation went into this business, you have to have a long point of view.
CLAMAN: They do
WRIGHT: It’s a decision with a long point of view. You know, and Jay has talent and ability to produce the show that is going to work and they’ll have to wait a while.
CLAMAN: Bob Wright, Co-founder of Autism Speaks and former Chairman and CEO of NBC Universal
