Analyst: NBC Network Is Worth 'Negative $600 Million' (Company worth $32 billion)

Hollywood Reporter ^ | Sept 27, 2010, | Georg Szalai

[tlb]

USA Network is the most valuable part of NBC Universal at $11.7 billion, but the NBC network is worth a negative $600 million, according to Wunderlich Securities analyst Matthew Harrigan.

According to the analyst, the NBC Universal cable networks make up 78% of NBC Universal's valuation. Thanks to the stronger-than-anticipated recovery in the advertising market, the total company is likely worth slightly more than $32.5 billion, he said. In the Comcast deal, NBC Universal was value at $30 billion.

Harrigan's valuation on Walt Disney's ABC network is a positive $1.2 billion in comparison with NBC's negative value. He told The Hollywood Reporter that he doesn't have current valuations for other broadcast networks, but believes NBC's value is the weakest among its peers.

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.

The studio's $4 billion and theme park unit's $1.4 billion combine into a total $5.4 billion studio and parks business, according to his estimates.

But both are dwarfed by Harrigan's $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.

Harrigan's total adds up to $41.6 billion, from which he subtracts nearly $9.1 billion in corporate and capital expenditures to arrive at a valuation of a bit more than $32.5 billion.

Adding in the $6 billion value of Comcast's cable networks, the combined NBC Universal-Comcast joint venture will be worth $38.6 billion before $9.1 billion of debt, or $29.5 billion when accounting for that debt, Harrigan said.

That would put the value of Comcast's 51% stake at around $15 billion.

[tlb]

NBC Network : -$600 million

USA Network: $11.7 billion

Universal Studios: $4 billion

Broadcast division as a whole (including NBC, Telemundo and local stations): $3.5 billion

Syfy: $6.3 billion

CNBC: $3.9 billion

MSNBC: $2.9 billion

Bravo: $2.6 billion

Shark-Octopus hybrids and pretend ghost hunters pay better then I expected.

[BigSkyFreeper]

It’s just further proof more people are watching cable than they are network TV, and very few are getting their news from these clowns.

[onyx]

LOL.

[preacher]

Liberals in the MSM don’t care so much about making money as they do for molding & shaping public opinion.

[personalaccts]

USA has some great shows.

[njslim]

Hey - Sharkoctupus is a modern classic...

[cranked]

Bwahahahahaha!

[comps4spice]

No way MSNBC is worth $2.9 Billion. It isn’t worth a flat dime.

[Izzy Dunne]

the NBC network is worth a negative $600 million

I'll give you a negative buck three-fifty for it.
(Bound to have some good sound equipment).

[BigSkyFreeper]

$2.9 billion isn’t a lot in the TV universe.