GE (GE) won’t sell its NBC Universal unit, so, after more disappointing quarterly numbers, it will put a new CEO in. Bob Wright, the head of the unit for years, will apparently be replaced by his No.2, Jeff Zucker. It is hard to say what GE gets out of the move.
Revenue at the NBC Universal unit grew 1% in the fourth quarter compared to a year ago. Segment profit rose 5% to $841 million. With GE’s total revenue up 11% and segment profit up 13%, the entertainment unit was not exactly a standout.
NBC Universal has said that it will need to increase its digital and internet revenue to improve its results. Although the GE unit has already begun making content available in new venues, all other major studios and television networks are doing the same. And, user-created video content is clearly competing for user time online.
Even with a new CEO in place, the chorus on Wall St. will keep calling for the unit to sold. Perhaps it can be packaged with the plastics unit and spun off to shareholders. Right.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
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