Immelt's bright idea set to pay off
General Electric Co Chief Executive Officer Jeffrey Immelt resisted pressure from investors to sell NBC Universal for years. He may be about to show them it was worth keeping.
The entertainment unit, stigmatized by shareholders for its television network's last-place showing since 2004, has served up seven quarters of earnings increases through cost-cutting. Now, NBC Universal CEO Jeffrey Zucker is ready to deliver on promises to lift its value through investments in US and international cable operations and the global exposure from NBC's coverage of the Olympic Games.
"The challenge that NBC had is that it has done poorly in the ratings," said analyst Scott Davis with New York-based Morgan Stanley. "NBC has made investments in Internet, cable and international - the combination should help to offset the declines in domestic broadcasting."
