Could NBC be sold?

Univision took out this advertisement last year when Univision beat NBC for the first time in February sweeps week. As I said earlier, COMCAST makes ten times the amount of income on it's cable networks as on it's broadcast networks (which includes Telemundo). Couple that with the observation that roughly half of Latino households watch TV via antenna.

What makes the advertisement particularly ironic is "Randy" Falco has been President and CEO of Univision Communications Inc. since June 2011. Before joining Univision in January 2011 as Executive Vice President and COO, he spent 31 years at NBC, including serving as the network’s President and COO.

As I showed on the table before, NBC was running 11 sitcoms coming into the 1997-98 season, and introduced 6 new ones. All 6 new ones failed, and 2 of the old ones. Since then starting new sitcoms has been slow and painful, and eventually the old ones died. One of the worst failures was Rob about a geeky gringo who marries a beautiful Mexican woman. It was painfully stereotypical and unfunny.

NBC's biggest show right now (outside of Sunday night football) is "The Voice" whose principal star is Shakira. One of it's more popuar Friday night dramas, Grimm, regularly features dialogue in Spanish and French (with subtitles).

Which leads to the natural question, will Univision purchase NBC network in the near future? I am assuming that it will be maintained as a primarily English network that slowly works in Spanish into it's programming. It could maintain English subtitles if Spanish is worked partially into some programs.

NBC is still a network? I haven't watched a single
program there in at least 10 years. I've seen some
of their shows on DVD. I just don't have time for
commercials anymore.

Quote: Evenbob

NBC is still a network? I haven't watched a single program there in at least 10 years. I've seen some of their shows on DVD. I just don't have time for commercials anymore.

Of course. This is where Tina Fey's 30 Rock, and "The office" come from.

Quote: Wunderlich Securities analyst Matthew Harrigan 9/27/2010

NBC Network Is Worth 'Negative $600 Million'

The negative $600 million value for NBC comes "as it remains a capital call for programming development as long as it remains mired in the #4 network position" in primetime, Harrigan said. An NBC official highlighted that the network pretty much tied ABC for the third and fourth spots in the 18-49 year old demo for the most recent TV season.

Harrigan's valuation on Walt Disney's ABC network is a positive $1.2 billion in comparison with NBC's negative value.

Thanks to the NBC and Telemundo stations that NBC Universal owns and NBC Universal TV, the value of NBC Universal's overall broadcast division stands at $3.5 billion though, according to the analyst.

Harrigan provided $32.7 billion valuation for the NBC Universal cable networks, including nearly $6.3 billion for Syfy, $3.9 billion for CNBC, $2.8 billion for MSNBC and $2.6 billion for Bravo.

NBC is still getting high ratings from SUNDAY NIGHT FOOTBALL, THE VOICE . and new series, "The Blacklist" (basically any show that follows, The Voice). It's valuation may even be a positive number today.

Univision already owns and operates a TV station in DMA's totaling 38.5% of the US market (legal upper limit is 39%). They have to skip over Boston and Seattle to stay within the limit.

DMA households
New York 7,384,340
Los Angeles 5,613,460
Chicago 3,484,800
Philadelphia 2,949,310
Dallas-Ft. Worth 2,588,020
San Francisco-Oak-San Jose 2,502,030
Boston (Manchester) No Owned and Operated
Washington, DC (Hagrstwn) 2,359,160
Atlanta 2,326,840
Houston 2,215,650
Detroit 1,845,920
Seattle-Tacoma No Owned and Operated
Phoenix (Prescott) 1,812,040
Miami-Ft. Lauderdale 1,621,130
Cleveland-Akron (Canton) 1,485,140
Raleigh-Durham (Fayetvlle) 1,150,350
Salt Lake City 917,370
San Antonio 881,050
West Palm Beach-Ft. Pierce 794,310
Austin 705,280
Fresno-Visalia 576,820
Tucson (Sierra Vista) 438,440
Bakersfield 221,740

So it is not clear if it would be valuable to buy another network.

I remember when GE bought NBC in the mid 80's.
Letterman was on NBC then and he took a camera
crew to GE and they wouldn't let him in. They were
rude about it too. Funny.

Quote: Evenbob

Letterman was on NBC then and he took a camera crew to GE and they wouldn't let him in. They were rude about it too. Funny.

GE acquired RCA in 1986, and with it NBC.

I forgot about the handshake. This was a
very funny bit, had me in stitches in 86.
Letterman would do this today, he hasn't
changed.

Of course the best was the long running
gag Tina Fey had going about NBC being
sold to a Jewish wig company, and then
a two bit cable outfit, Kabletown.

Tracy: So GE will produce the Tracy Jordan Meat Machine?

Jack: Oh no, no. GE could never make something so... unique. We'll have to pass this off to one of our subsidiaries. You see, GE owns KitchenAll of Colorado, which in turn owns JMI of Stamford which is a majority shareholder of Pokerfastlane.com which recently acquired the Sheinhardt Wig Company which owns NBC outright. NBC owns Winnipeg Iron Works which owns the AHP Chanagi Party Meats company of Pyongyang, North Korea... and they will make the Meat Machine.

"The Rural Juror" is the tenth episode of the first season of 30 Rock (January 11, 2007).

The President and CEO of Univision Communications, Randy Falco is pictured below.


Univision has already made a major push into English language television. The network's content features news, lifestyle, pop culture, satire and entertainment aimed at English-speaking millennials, including those of a Hispanic background;

The first 4 seasons of 30 Rock were the best.
Some cable reality shows got better ratings
than 30 did in the last few seasons. They only
renewed it so it could be syndicated. That's where
the real money is now.

Quote: Evenbob

They only renewed it so it could be syndicated. That's where the real money is now.

Because of the writer's strike they only had 80 episodes after the first 4 seasons. Fcc regulations are that you must have 88 episodes or you can't syndicate a show off network while the show is generating new episodes.

The fact that 30 Rock went for 7 seasons and 138 total episodes means that the small audience that they did get had a high enough income that it was worthwhile to sell advertising time. They had a show that could be syndicated after 5 seasons.

There are many shows with plunging ratings that go off the air when they have just enough episodes. Many times the production house is selling the show for cheap, if they will continue to pay until they get the magic number.

Recent Examples of shows whose goal was clearly to get to the position where they could get syndication
81 Two Guys and a Girl 2001-05-16 (finale)
81 Til Death 2010-06-20
87 Cybill 1998-07-13
89 The Hughleys 2002-05-20
88 Still Standing 2006-03-08
88 Old Christine 2010-05-12
95 Cosby 2000-04-28
100 Rules of Engagement 2013-05-20


64 Last Man Standing (present)
They are paying Tim Allen a fortune for this low rated show. My guess is they will push it for one more season and terminate.

Quote: Pacomartin

Tracy: So GE will produce the Tracy Jordan Meat Machine?

One of my fave episodes. Tracy was having money
problems and Jack wanted to show him how easy
it was to make money for a celebrity. A horrible
unsafe machine, he ended up giving it to Whoopie
Goldberg.