Governors signal support of Comcast-NBC merger

The governors of California, New York and Pennsylvania are strongly behind Comcast's proposed merger with NBC Universal, according to a letter sent today to the Federal Communications Commission (FCC).

Governors Arnold Schwarzenegger, David Paterson, and Ed Rendell added their names to the list of lawmakers supporting the deal, which would create a new $30 billion joint venture by merging the Philadelphia cable giant's content division with NBC Universal's (NBCU) stable of television networks, film studios and theme parks.

Under the terms of the deal the two would form a new company in which Comcast would hold a 51 percent share, with NBCU's owner General Electric holding the remainder. The FCC has appointed John Flynn, formerly employed in the private sector, to examine the merger's impact across a range of media and telecommunications markets.

"This transaction will let two great American companies, Comcast and GE, focus on their respective strengths. By placing NBCU under the management of Comcast, a company whose sole focus is entertainment and communications, we believe it will become a stronger company," state the governors, who note that they represent states where the two firms have the most substantial business presence.