Is John Malone really worried about Comcast-NBC or is there another agenda at play?

How's this for irony? Liberty Media Chairman John Malone, the cable mogul who was once dubbed Darth Vader by Al Gore and who wrote the book on how to combine content with distribution, squeeze competitors and build an empire, is apparently worried that a Comcast-NBC Universal combination would be too big.

According to the Associated Press, Malone said in an interview that the deal would require competitors to "look pretty hard on how they can protect themselves from the kind of market power that would represent."

Malone certainly knows a lot about market power. He built Tele-Communications Inc. into the nation's largest cable operator in the 1980s and used that leverage to become a major content provider as well. If you had a cable network and wanted to get distribution, you had to cut a deal with Malone. Regulators routinely had Tele-Communications in their sights, and even other media giants complained of strong-arm tactics from Malone and TCI. Sumner Redstone's Viacom even once sued TCI and Malone on anti-trust grounds.

While his footprint in American media has definitely shrunk, Malone is still a force. Liberty owns satellite broadcaster DirecTV, a stake in satellite radio operator Sirius XM, a big chunk of Barry Diller's IAC/InterActiveCorp, the Atlanta Braves and a piece of the Denver Nuggets. Malone himself has a stake in Discovery Communications and sits on its board.

Consumer advocates and media watchdogs are already making noises in Washington about a potential Comcast-NBC Universal combination. Malone told Reuters that DirecTV will have a "point of view" on the as yet unannounced deal. It is rare for a rival media mogul to speak out against a deal, particularly one who has such disdain for government involvement in business. We were unsuccessful in an effort to reach Malone to see if he is really worried about the deal or if his remarks were taken out of context.

While it is unlikely that other media companies will publicly criticize the deal, that doesn't mean they don't have other ways in which to make their presences felt. Often they form alliances behind the scenes in an effort to sway regulators without leaving fingerprints. One of the more amusing examples of this was when News Corp. Chairman Rupert Murdoch lobbied the National Religious Broadcasters to make noise against a proposed merger of satellite broadcasters EchoStar and DirecTV in 2002. Murdoch wanted DirecTV for himself (and later got it, only to eventually sell it). The Wall Street Journal reported how Murdoch went to the annual NRB convention in Nashville to try to get them involved his fight and even joined a prayer circle while there.

Odds are that the shrewd Malone wants something out of Comcast or NBC and this is his way of making his presence felt. He's already in a little battle with Comcast over the cable giant's sports network Versus, which DirecTV has stopped carrying because of a feud over money. Don't be surprised if Malone's  objections fade after some backroom deal gets done. It's not exactly Chinatown, but this is how business is done in D.C.

-- Joe Flint

Image: John Malone. Credit: Andrew Gombert / European Pressphoto Agency

It's probably not a good time for Comcast to get tangled up in Ticketmaster-Live Entertainment merger

Lets see. Comcast is on the verge of announcing a deal to take control of NBC Universal. Said deal will draw lots of attention from Washington. Even though, on the surface, the deal appears to face few regulatory obstacles, now is the time to maybe think about a low profile in our nation's capital.

But either in a case of bad timing or bad judgment, Comcast has become somewhat entangled in the Justice Department's intense review of the merger between Ticketmaster Entertainment Inc. and Live Nation Inc., according to Bloomberg, which reported the story this morning. The Bloomberg story specifically says Comcast is "working with Ticketmaster Entertainment Inc. and Live Nation Inc. to help the two companies salvage their music industry merger now under U.S. antitrust scrutiny."

The Ticketmaster-Live Nation merger, which would pair the globe's biggest ticketing company with the largest concert promoter and arena owner, has raised red flags both here and abroad. Last month, British regulators said they were opposed to the merger. Here, many lawmakers and consumer groups have warned that the combination would create a powerful monopoly that could hurt both artists and consumers.

Comcast has a lot of interest in the outcome, for obvious reasons. The company is the owner of a couple of sports teams (Philadelphia Flyers and 76ers) and arenas as well as its own ticketing unit -- New Era Tickets. Comcast also owns Ovations Food Services, which has deals with arenas and stadiums all over the country to supply food and beverages. Bloomberg says Comcast could get client contracts and software as part of the concessions that Ticketmaster and Live Entertainment would have to make to get through the Justice Department.

Comcast already testified in support of the merger on Capitol Hill earlier this year. If, as Bloomberg reported, Comcast is now trying to help push the deal through the Justice Dept., this does not seem like the ideal time for such a move, particularly when the deal is facing such dramatic opposition. Somehow, we're guessing that regulators won't be pleased to hear that a huge conglomerate, which is looking to get huger, doesn't not have an issue with another huge merger -- from which it might stand to benefit

The Obama administration has talked about being tougher on mergers than the Bush administration was, and although there is little on paper to stop a Comcast-NBC Universal deal, it doesn't seem to make a lot of sense to make the spotlight on your company even bigger.

Now if the Justice Department asked Comcast for information to help them decide how to proceed on the Ticketmaster-Live Entertainment merger, that's a different story.

We called Comcast spokesman Ike Richman to try to figure this out, but he wasn't interested in even hearing our questions before offering his no comment. We explained that we'd like to actually ask questions before getting his no comment and then he begrudgingly agreed to listen to one question before again declining comment. For their sake, let's hope he's not put in charge of the schmooze regulators effort at Comcast after the NBC deal goes down.

-- Joe Flint

Photos: At top, Live Nation CEO Michael Rapino (left) and Ticketmaster Entertainment CEO Irving Azoff testify about their merger on Capitol Hill in February. Credit: Kevin Wolf / Associated Press. At bottom, Comcast CEO Brian Roberts. Credit: George Widman / Associated Press

What's in a name? We'll see when Comcast and NBC Universal figure out what to call themselves

Since we're all expecting Comcast to announce its deal to take control of NBC Universal next week from General Electric Co., the next step is coming up with a name for the new entity.

Will it be something boring like Comcast NBC Universal Inc.? Will they try to be cute and call themselves NBCUNICOM? Maybe NBCUNICAST? Suggestions are all over Twitter.

Variety's Mike Schneider has suggested NBComiversal. A certain network executive who goes by the moniker of Masked Scheduler has suggested "ComZuckerVersal."

I think the NBC peacock logo needs to be incorporated into the new name. Maybe Peacast is the way to go.

The sad thing is that as we joke about it, some person is jotting down names on a piece of paper and making logos and getting six figures for it! 

Meanwhile, Web domains are being gobbled up by Comcast and others. According to Broadcasting & Cable's Alex Weprin, a Danny Pezzotta purchased NBCComcast.com and ComcastNBC.com. Not wanting to get beat on everything, Comcast appears to have bought ComcastNBCU.com and NBCUComcast.com 

Yes, it's a slow day and yes we're still feeling snarky.

-- Joe Flint

NBC Universal disappoints French partner Vivendi

They're not exactly shouting "Vive NBC!" within the executive suites of Vivendi these days.

Vivendi, the Paris-based media and telecommunications conglomerate that holds a 20% stake in General Electric Co.'s NBC Universal, said the U.S. entertainment company's contribution to Vivendi dropped 27% for the first nine months of the year compared with the first three quarters of  2008. So far this year, NBC Universal earnings to Vivendi were $190.5 million. For the same period in 2008, NBC Universal contributed $220 million to Vivendi's bottom line.

Ironically, the declining performance of NBC Universal may actually benefit GE. That's because the industrial giant is negotiating to sell a controlling stake in NBC Universal to cable giant Comcast Corp. To do that, GE needs to buy back Vivendi's stake. And a weaker NBC Universal means that Vivendi's stake is worth less.

For those thinking that Vivendi might drop a hint today on its earnings call as to whether it planned to sell its 20% interest back to GE or take it public were disappointed. Although the annual window for Vivendi to exercise its option to sell its stake officially opens Sunday, Vivendi Chief Financial Officer Philippe Capron shed no light on the subject in a call with analysts. He said he would not entertain questions about a possible divestiture of NBC Universal -- and there were no questions.

-- Meg James

Lots of smoke but likely to be few flames in D.C. for Comcast-NBC

The takeover of General Electric Co.'s NBC Universal by cable giant Comcast Corp. is expected to be announced very soon, and already public interest groups are lining up to do battle in D.C. against the deal. The Center for Digital Democracy's chief, Jeff Chester, recently told Broadcasting & Cable that the still-to-be proposed marriage is "the equivalent of Godzilla swallowing Rockefeller Plaza." How's that for hyperbole?

Yes, a deal between Comcast and NBC Universal should be scrutinized. But the bottom line is there are -- on the surface anyway -- no major regulatory hurdles here that could seriously impede Comcast's taking a majority stake in NBC Universal. We've already reported on this, but thought it appropriate to offer a refresher course as the Comcast-NBC dance moves from a waltz to a tango.

Many keep mentioning Federal Communications Commission rules that prohibit a cable operator from owning a TV station in the same city. Alas, those rules were blown out ten years ago. No headaches there.

There is talk that having the biggest cable operator own so much programming (NBC, E! USA, Bravo, CNBC, MSNBC, etc.) will also automatically raise red flags. Well, until it spun off its cable systems, Time Warner owned the nation's second-largest cable operator and several big cable networks including CNN, TNT, TBS, Cartoon Network and HBO. The FCC has rules already (the so-called program access regulations) that safeguard against distribution companies withholding their content from competing distributors. Those rules are set to expire in three years, although this deal could give the commission juice to argue to keep them around a little longer.

Furthermore, the deal probably will be a merger of Comcast's programming units with NBC Universal into a new company. Comcast's cable systems, which reach almost 25% of the country, would not be part of the new entity. Now we can all roll our eyes at that, but regulators usually take things at face value. If Comcast keeps its cable systems at arms-length, on paper anyway, don't expect a heavy-handed FCC.

Could the FCC try to ram some extra safeguards down Comcast's throat? Sure, and it's nothing that Comcast would probably let stand in the way of its deal. 

The FCC will have to approve any transfer of NBC's broadcast TV stations. Quick, tell me the last time the FCC denied a license transfer.

Ex-NBC topper Bob Wright on Vivendi and Jay Leno

Former NBC Universal CEO Bob Wright said he doesn't think Vivendi, the French conglomerate that owns 20% of the media giant will look to unload that stake in a public offering.

What Vivendi will do with its chunk of NBC Universal has become everyone's favorite guessing game, especially now that NBC Universal parent General Electric Co. is in negotiations to sell a controlling stake in its entertainment unit cable goliath Comcast Corp.

In an interview with News Corp.'s  Fox Business Network, Wright said, "I don't think an IPO is such an attractive proposition right in this market." He said he thinks Vivendi will negotiate an exit deal.

Wright did not shed much light on why he thinks GE is looking to sell. He said "this is a depressed time for media. NBC Universal value is lower today than three or four years ago." Asked why then is GE looking to deal, he responded "maybe they worry it won't get much better."

Ever the politician, Wright did not criticize he successor Jeff Zucker's big bet on Jay Leno in prime time. Asked about the move to run the show in the 10 p.m. time slot five nights a week, Wright said, "it's a decision with a long point of view ... they'll have to wait awhile."

-- Joe Flint

Photo: Bob Wright. Credit: NBC

News Corp. mulls the Chernin factor

Peter Chernin is not flying the News Corp. jet into Philly.

But he probably could if he wanted to. 

The veteran movie and TV executive, who stepped down as president and chief operating officer of the News Corp. media empire this summer, has spent the last few months as a key, behind-the-scenes adviser on cable giant Comcast Corp.’s negotiations to take control of NBC Universal. Revelations this week of Chernin’s involvement in the proposed deal has prompted speculation that the prominent and savvy executive could emerge as a powerful player at NBC Universal if the Philadelphia-based Comcast succeeds with its bid.

Chernin's new role is intriguing because of his well-known desire to head his own enterprise -- one where he is firmly in charge. The situation also is complicated by Chernin’s ongoing relationship with his old boss, Rupert Murdoch, and News Corp.

Chernin's work with Comcast does not violate his current agreement and production deal with Murdoch. Chernin has spent the last few months forming his own movie and television production company – a venture financed by News Corp. His six-year contract requires Fox to pay his new TV and film production firm’s overhead and greenlight at least two movies a year. Fox also has first crack at any TV shows that he produces. As part of Chernin's exit package, which took effect in July, he continues to enjoy an office on the Fox lot and the use of the News Corp. jet.

For now, Chernin also is free to help Comcast design a company that could become a more potent competitor to News Corp.  "Basically, News Corp. is a little bit out in the cold on this one," said Clinton Korver, a partner at the Palo Alto-based investment firm Crescendo Venture Management and co-author of the book "Ethics for the Real World," published by Harvard Business Press. 

But because of Chernin's production deal with Fox, taking a bigger role within a Comcast-run NBC Universal could become thorny. Interestingly, two of Chernin's senior staffers are also former NBC Universal executives. Read the full story in today's Los Angeles Times.

-- Meg James

Photo: Peter Chernin. Credit: Scott Eells / Bloomberg News

General Electric Co. CEO Jeffrey Immelt on NBC: 'I hate being No. 4'

Jeffrey Immelt, the chairman and chief executive of NBC Universal parent General Electric Co., expressed some frustration with NBC's lackluster prime-time performance this season in an interview at an industry conference.

"I hate being No. 4," Immelt said at the Web 2.0 Summit in San Francisco. He was responding to a question by writer and Federated Media Publishing Chairman John Battelle about whether the network's ratings had anything to do with the decision to discuss selling a controlling stake in the entertainment company to cable giant Comcast Corp. That said, he did not say the network's lackluster start to the new season is the motivation behind the Comcast  talks. "I assume we can be No. 1 again," he said.

Immelt added that GE remains "quite comfortable" owning NBC Universal. He indicated that if a deal can't be reached with Vivendi to acquire the French industrial giant's 20% stake of NBC Universal then an IPO by Vivendi "would be fine."

The GE CEO also had some thoughts on how social networking sites are changing how companies operate.

"If you can't tolerate life in a world where you are sharing information openly, you'd better find a new profession," he said.

-- Joe Flint

Two former Foxes on Peacock hunt: Peter Chernin and Peter Liguori advise Comcast on NBC Universal deal

Call it the Comcast Friends and Advisors plan.

The cable television giant doesn't have deep roots in Hollywood, but it has friends who do. For more than two months, two former high-ranking Fox entertainment executives -- Peter Chernin and Peter Liguori -- have been counseling Comcast as it negotiates with General Electric Co. to take control of NBC Universal, people close to the situation said Monday.

Chernin, who until July was No. 2 to Rupert Murdoch at News Corp., has been informally advising his friends – and neighbors -- at Comcast as they prepare a possible takeover of the television company and movie studio. The deal under negotiation would give Comcast 51% of NBC Universal, while GE would own the remaining 49%.

Not only does Chernin have expertise managing entertainment companies, he also has the added benefit of knowing the top two Comcast executives, in part, because they have neighboring vacation homes: Chernin owns a house near Comcast Chief Executive Brian Roberts’ home on Martha’s Vineyard. And his ski lodge in the exclusive Yellowstone Club in Montana is next door to one owned by Steve Burke, Comcast’s president and chief operating officer.

But Chernin offers Comcast more than just location, location.

Time Warner and NBC: Tell us how you really feel, Mr. Bewkes

Time Warner Chief Executive Officer Jeff Bewkes once again made it clear that no means no.

Speaking at TV Week's Innovation conference in New York today, Bewkes indicated Time Warner has no plans to make a move on NBC Universal. Cable giant Comcast Corp. is in talks to acquire a majority stake in General Electric Co.'s NBC Universal, and since then speculation has been rampant about other bidders, but so far no serious ones are emerging.

Apparently the pain of Time Warner-AOL still stings after almost 10 years, according to Peter Kafka, the fine blogger at the Wall Street Journal's All Things Digital who covered the event.

Writes Kafka: 

“Somebody has finally noticed that these things don’t work out so well,” he [Bewkes] said, adding “We love to see our competitors taking risks.”

But just to hammer that point home, Bewkes compared the proposed deal to the one his company made nine years ago, when it embarked on an ill-fated merger with AOL. That deal (made when Bewkes was running Time Warner’s HBO unit) “basically made no sense” at the time, he said.

The main talking point in favor of that transaction — that connecting Time Warner’s content with AOL’s Internet distribution would create synergy — was “nonsensical,” he said. But “these kind of arguments, you’ll hear some of them this week, in the other merger that we’ve been talking about,” Bewkes said.

We do hear from other folks at the event that Bewkes did go on to say there was some logic to Comcast and NBC, and he wasn't necessarily saying that the cable company's desire to acquire control of NBC was on par with what is considered one of worst mergers in history.

For Comcast, it does make sense to bolster its programming. Bewkes has basically made his bet on content and that is what Comcast is doing in going after NBC Universal. 

-- Joe Flint