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Wall St 'skeptical' on Comcast's Olympic bet
"Sports have become the last line of defense for traditional video," but they're getting more expensive
Comcast shares initially rose this week after the Philadelphia-based cable TV and Internet company clinched a $4.4 billion deal for TV rights to the next four Olympic games (and announced plans to buy BlackRock's stake in Universal theme parks, and maybe sell the 76ers and the G4 gamer channel).
Comcast boss Brian Roberts' hopes the Olympics will be profitable for his company have been "met with skepticism," Bloomberg reports here.
Other views:
"NBC lost $225 million on the 2010 games, and expects to lost $250 million on the 2012 games," writes Dave Novosel, cable analyst at bond-watcher Gimme Credit LLC. He's "skeptical" of future Olympic profits.
Comcast boss Brian Roberts' hopes the Olympics will be profitable for his company have been "met with skepticism," Bloomberg reports here.
Other views:
Comcast/NBCUniversal may still lose
money on the 2012 London Olympics, even with our assumptions of a 10% increase in network
advertising for the games and an incremental 5% increase (over our current estimates) in companywide
reverse comp to NBC
"Comcast/NBCUniversal may still lose money on the 2012 London Olympics, even with our assumptions of a 10% increase in network advertising for the games," and a boost in station payments to NBC, estimates analyst David C. Joyce at Miller Tabak & Co. in New York."NBC lost $225 million on the 2010 games, and expects to lost $250 million on the 2012 games," writes Dave Novosel, cable analyst at bond-watcher Gimme Credit LLC. He's "skeptical" of future Olympic profits.