GE to save millions more thanks to NBC Universal

[NemoRocks78]

GE to save millions more thanks to NBC Universal
Bloomberg News
Posted February 16, 2005

General Electric Co. will save about $350 million this year from NBC's combination with Vivendi Universal SA's media assets -- $50 million more than projected when the transaction closed last May, NBC executives said Tuesday.

That's in addition to the $125 million saved in 2004, which was about $25 million more than planned, Lynn Calpeter, NBC Universal's chief financial officer, said during a meeting with analysts and investors at Universal Orlando.

General Electric combined its NBC broadcast and cable-TV assets with Universal's film studio, cable networks and theme parks, giving GE 80 percent of the merged business.

NBC Universal expects profit to rise to about $3.3 billion this year from $2.6 billion last year, with sales expected to rise to $14.8 billion from $12.9 billion. Employee morale is better than anticipated, Calpeter said.

"We have worked just as hard on cultural integration as we have on financial integration," she said.

 

[AndyP]

Thanks for the news. I hope they use some of that profit to invest in the parks! Guess we'll have to wait and see.

 

[Legacy]

That is great news. That means that the deal is working out across the board, which will allow GM to consider keeping the parks even longer.

 

[Lynx04]

One of the main problems I see is that GE being a very large and diverse conglomeriate (sp) may not spend the money on the theme park. The theme parks could be very far down the list of priorities.