Analysts Believe G.E. Should Sell-Off NBC-Could Google Write The Check?

Citigroup analysts and others among the market have been reporting over the last few days that General Electric (Stock Quote:http://finance.yahoo.com/q?s=ge) should cut ties with NBC Universal.

The full article can be seen here at the New York Times Business page:http://dealbook.blogs.nytimes.com/2007/04/27/ge-should-shed-nbc-citi-analyst-says/

Although it's tough to understand why anyone would want to cut ties with a company that is estimated to have an equity value of almost $40 billion, the article makes a good argument.

NBC Universal is a worldwide media conglomerate. I stronglybelieve they are the top media company in the network tv space beating Fox, CBS, and ABC. Although I'm not stacking this up against any revenue numbers or factual research, it has always been my opinion that NBC has the strongest brand name and has always held itself to the highest standards.

But even with that said, why would a company whose core business comes from building jet engines and focusing on developing and building new energy components own a media conglomerate such as NBC?

That's not a question for me to answer. It's something that we can sit back and watch unfold as these rumors come out about a possible sale. It's hard for me to understand why G.E. would want to cut ties with NBC, other than the fact that it might make sense for them financially. The stock increased a few points just with the rumors.

Regardless of the reasons or speculation, it will be fun to watch over the next few months to find out if G.E. will put NBC on the block. Who will write the check? Google?

Why not? It would be the perfect opportunity for Google to step into the broadcast sales world. They have been dabbling with placing media across the country but they need a cable or broadcast partner to really step into the market. A few weeks ago they signed an agreement with Echostar to begin selling and placing advertisements on their satellite network, however in order to become a big player they are going to need a broadcast or cable partner deal. This could be their opportunity and few companies have the cash to be able to make this purchase.