Two years after purchasing a controlling 51% stake in NBCUniversal from General Electric (NYSE:GE), cable service provider Comcast (NASDAQ:CMCSA) announced that it will acquire the remaining interest in the film and television company.
Investors cheered the move, sending share of Comcast surging more than 6% in Wednesday morning trading, while GE rose more than 3%.
Comcast will pay $16.7 billion to acquire the 49% of NBCUniversal that it does not already own. Under terms of its original investment in the company, it had an option to buy the rest of NBCUniversal staring in July 2014, the Los Angeles Times notes.
GE acquired NBC in 1986, and combined it with Universal Studios in 2004, adding theme parks and film revenues to NBC’s traditional broadcast TV business. However, after the financial crisis and economic downturn, GE opted to concentrate on its core manufacturing business.
The acquisition is expected to close in March. Comcast will also pay $1.4 billion to buy GE’s office space in Manhattan’s iconic Rockefeller Center and CNBC New Jersey headquarters.