NBCU CEO Jeff Zucker was well-educated at Harvard. He is well liked by his managers at GE (NYSE:GE). He is well-regarded within the entertainment history. And, NBCU has done almost nothing to distinguish itself within its industry while he has been at its head.
Sources have told Reuters that Zucker will keep his job when Comcast (NASDAQ:CMCSA) buys a majority interest in NBCU from GE. That means that the “tone at the top” will change very little and makes it a further mystery of why Comcast wants NBCU at all.
Industry problems could be blamed for some of NBCU’s troubles. The recession has hurt TV advertising and internet marketing sales. NBCU does not have an internet presence anywhere close to the size of the major online portals and is in traditional media business including broadcast television and movie production.
Zucker is not going to change anything once Comcast is in charge. He did nothing spectacular with the division, which is the primary reason GE wants rid of the unit. NBCU is, in GE’s eyes, an underperforming asset.
Some analysts believe that NBCU can do better with Comcast as its controlling shareholder. The largest cable company in the US has the means to distribute NBCU programming over its TV and broadband systems. But, NBCU has those relationships with Comcast already. The cable company would almost certainly run afoul of government antitrust authorities if it were to begin to give advantages to NBCU over its competitors in the studio and TV businesses.
NBCU will be what it already is–an entertainment business that delivers mediocre performance in an industry with uncertain prospects that is run by a man who has not distinguished himself as an innovator.
Douglas A. McIntyre
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