Franken asks Justice to look at Comcast/NBC deal

By Reuters
Posted Nov. 22, 2010 at 4:04 p.m.

Sen. Al Franken, a critic of Comcast Corp.’s proposed deal for control of NBC Universal, asked the Justice Department Monday to investigate whether the giant cable company had engaged in “illegal collaboration” concerning its intended target.

Franken (D-Minn.) said that on Sept. 26 Comcast had named its chief operating officer, Steve Burke, as the prospective chief executive of NBC Universal. Last week, Comcast named several executives who would hold top jobs at NBC Universal after the cable company took control of the broadcaster and movie studio from General Electric Co.

“By announcing the future leadership of NBC Universal well in advance of federal approval, Comcast may be seeking to indirectly exert managerial and operational control of that company,” wrote Franken, once a performer on NBC’s Saturday Night Live.

“As a result, Comcast’s actions may constitute ‘gun-jumping’ in violation of the letter and spirit of federal antitrust law,” Franken wrote in the letter to Christine Varney, head of the Justice Department’s antitrust division.

But Comcast said transition and integration planning is common, proper and expected.

“Post-closing management teams are regularly announced prior to antitrust approval. NBC Universal has remained in total control of all decision making to date,” said Comcast spokeswoman Sena Fitzmaurice.

An antitrust expert agreed it was not unusual for executives to be named for posts before the companies get government approval to close.

Comcast revealed its bid to buy a controlling stake in NBC Universal from General Electric on Dec. 3, 2009, a $30 billion deal to create a business including broadcast, cable networks, movie studios and theme parks.

Talks between Comcast’s representatives and U.S. regulators have intensified in recent days, according to sources, as the company tries to complete the deal by year-end.

Regulators are “likely to impose significant conditions” on the new business, a source told Reuters this month.

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One comment:

  1. Jeff Nov. 22, 2010 at 4:28 pm

    This would be funny if it weren’t so embarrassing for the state of Minnesota. Does Franken even know what “illegal collaboration” is? Has he even read the anti-trust law? Or is he just mad that his favorite outlet for his far-left views is going to get adult supervision? This loon will embarrass the people of Minnesota worse than Jesse Ventura did before his term is over.