This article featuring an analysis by Wunderlich Securities analyst Matthew Harrigan gives us a first-hand look in to a complicated topic in the media economy--that of valution. Harrigan has analyzed the pending NBC Universal acquisition by Comcast, and provides some amazing insight in to the valuation process--at least how this one analyst conducts such an undertaking.
Two things caught my attention. First, the significant value placed on the NBCU cable channels, specifically ScyFy, CNBC, MSNBCm and Bravo. The second thing that was very interesting was the negative valuation for the NBC broadcast network, which eliminated some $600 million off the total amount. It is the first time I have seen one of the big four broadcast networks valued negatively. The reason? NBC's poor performance since 2007 in prime-time, finishing most seasons in either third or fourth place.
This is a very interesting article for a topic that we find too few stories about. BTW, in case you don't want to read the article in the link, Harrigan values the merged Comcast-NBCU company at just a little over $38.6 billion, making it the world's largest media company.
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