NBC is once again stuck in last place in prime-time ratings; its much-hyped Olympic coverage is over, so are the elections; advertising across media is under pressure; and dishing out $67 to hang at the Universal Studios theme park probably isn’t as appealing when you could soon lose your job, house, car, etc.
Still, NBC Universal would seem more secure within parent General Electric than it has been for some time. Indeed, most of the talk about a possible sale has faded away. Here’s what analysts told us for a recent article.
“I’ve struggled with it forever, in terms of why GE has it, especially now in a situation like this where ad revenues are down,” says Mike Gandrud, senior analyst at Optique Capital Management.
“I’d love to see them do something with it … Do I expect it to happen? No.”
“Eventually, I believe, they want out and have decided it doesn’t represent the kind of upside growth of some alternatives,” says Steve Ridge, president of media strategy at research firm Frank N. Magid Associates. ”For now, I think they missed the window.”
Why not sell? Get out of media at a time when media is under heavy pressure? A number of reasons, ranging from NBCU’s recent strong performance to its ability to generate cash. Oh, and of course, it’s next to impossible to sell anything these days at a reasonable price.