Stocks Rise as General Electric (NYSE: GE) and Comcast (NASDAQ: CMCSA) Reach a Decision on NBC Universal
Stocks Rise as General Electric (NYSE: GE) and Comcast (NASDAQ: CMCSA) Reach a Decision on NBC Universal
The 27 year old ownership of NBC Universal by General Electric (NYSE: GE) has come to an end, as Comcast (NASDAQ: CMCSA), the largest cable TV operator in the U.S., is set to acquire a 49 percent stake in overall holdings a year earlier than expected. NBC Universal is the banner under which some of the most popular cable networks in America operate. The network’s subsidiary channels constitute one of the highest grossing sectors in the entertainment industry market; with an $8.77 billion total revenue recorded last year. The prime time ratings for the network are looking bright for the coming season, and its sale to Comcast for $16.7 billion will surely prove to be a money generator for the company.
For Comcast, apart from the buzz in the cable TV scenario, the Universal Studios theme parks are also set to get the wheels of profit in motion for. Banking upon the Harry Potter franchise coming to the Hollywood theme park, Comcast will surely prove to be strong competition to Disney (NYSE: DIS) thorough the Universal studio banner. No longer perceived as a poor imitation of Disney theme parks, the Universal Studios theme parks will be a lucrative success for Comcast this year.
Comcast has had a strong hold over the market in the last couple of years, particularly because of its rising number of cable TV subscribers. Its merger with the recently thriving NBC Universal has kicked up stock performance, not only in the entertainment industry, but also in the energy sector.
General Electric is set to bounce back in the market with a bang this year, as they can now fully focus on their industrial business in the energy sector with NBC Universal out of the picture. The sale of NBC Universal has also been good news for GE on the financial front, as it will now be able to buy back a large number of its shares and return $18 billion to its investors through dividends this year. The valuation of GE shares increased by 3.6 percent following the news, making this deal a win-win situation for the company, which is the largest manufacturer of turbines and jet engines globally.
Focusing on emerging growth companies in the industrial energy sector, the situation seems ideal for the alternative energy sector to take control of the market. The solar energy segment is one of the most prominent sectors and has huge potential for growth in the coming few years. The market leader in this area, SunPower Corporation (NASDAQ: SPWR) saw a 17 percent rise in its earnings and First Solar, Inc. (NASDAQ: FSLR) is also one company that will prosper with the recent upswing in the alternative energy sector. FirstSolar has long term potential for growth, making it a safe and viable investment choice. Gevo, Inc. (NASDAQ: GEVO) is another company that is a rising name in the alternative energy franchise and should be on your list if you are looking for long-term profits.
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Comcast will really benefit from this acquisition. We can expect the steady earnings growth to continue and GE can now focus its efforts on other projects. Not to mention that 3.33% dividend. Additionally, I am not big on solar right now but if I had to pick a long term winner it would be SolarCity (SCTY).
You’re right about SolarCity. I consider it a long-term play. Btw, like you mentioned, Camcast will get so much off this acquisition. I’m watching events as they unfolds.
Solar is a good play. Pressure from environmental buffs and regulatory bodies will ultimately sway the market toward solar and alternative energy.
GEVO could also be a good alternative.
you should check out GEVO on Google finance, I’m sure you”ll reconsider your stand on it being a good a alternative.
I will place Comcast first, GE second, FSLR can then come in
Once again NBC is being sold. Seems to happen quite a bit.