Comcast Makes Deal and Buys Other Half of Universal
Comcast had recently said that they were seriously thinking about buying the other half of the Universal Orlando Resort from the other c-owner, Blackstone, as you can see from our recent post. Yesterday, the deal was officially made, and was reported from the Orlando Sentinel. Take a look:
Comcast to buy remaining half of Universal Orlando for $1 billion
Comcast Corp.'s NBCUniversal will buy the Blackstone Group's half of Universal Orlando for just more than $1 billion, the companies announced Monday, in a deal that adds to Comcast's growing media-and-entertainment holdings and ensures the resort won't be put on the auction block.
The deal was struck just five months after Philadelphia-based Comcast closed on its $13 billion deal to acquire a majority stake in NBCUniversal from General Electric Co. ...
"The acquisition consolidates our ownership and confirms our long-term commitment to Universal Orlando and the theme-park business," Steve Burke, the former Comcast chief operating officer who is now chief executive officer of NBCUniversal, said in a prepared statement. "Universal Orlando is a consistent and significant driver of operating and free cash flow and is performing extremely well. It has a superb management team and exciting growth opportunities. This purchase of the Blackstone interest is attractively valued and represents strong financial returns for NBCUniversal."
The deal was struck just five months after Philadelphia-based Comcast closed on its $13 billion deal to acquire a majority stake in NBCUniversal from General Electric Co. ...
"The acquisition consolidates our ownership and confirms our long-term commitment to Universal Orlando and the theme-park business," Steve Burke, the former Comcast chief operating officer who is now chief executive officer of NBCUniversal, said in a prepared statement. "Universal Orlando is a consistent and significant driver of operating and free cash flow and is performing extremely well. It has a superb management team and exciting growth opportunities. This purchase of the Blackstone interest is attractively valued and represents strong financial returns for NBCUniversal."
With the $1.025 billion price tag, Blackstone is more than tripling its original investment in the resort. The private-equity firm has owned its stake since 2000; the other half of Universal has flipped through four owners over the same period, including Seagrams, Vivendi, General Electric and Comcast. ...
Blackstone also owns Orlando-based SeaWorld Parks & Entertainment, which it purchased from Anheusber-Busch [sic.] InBev in 2009 for approximately $2.5 billion.
NBCUniversal will pay for the Universal Orlando purchase through a combination of cash on hand; borrowings under an existing line of revolving credit; and a one-year, $400 million loan from another Comcast affiliate. The sale is expected to close July 1.
Comcast, as NBCUniversal's new owner, had until June 12 to buy Blackstone out, or else Blackstone would have been free to shop the entire resort to third-party buyers. If Blackstone were able to find a rich enough bid, Comcast would have been compelled to go along with the sale.
As you may have read, Comcast was actually "forced" to buy the other half of the resort, otherwise they would have had to sell the whole resort to another company. What do you think will happen next? Is this a good move on Comcast's part? Share your opinions!
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