...AT&T Merging with Comcast Tonya Mealey, Teneisha Bonner, and Richard Chan ECON220-X-1302B-02/Professor Luzius July 14th, 2013 Abstract For our group 5 project, we have collected information about the company AT&T merging with Comcast. In this paper, the industry description introduces the company and explains the history of the company. The supportive argument and the argument against the merger are discussed. Keywords: AT&T, Comcast AT&T Merging with Comcast Initially, Comcast proposed to buy AT&T Broadband for 44.5 billion in assets and 13.5 billion in deficit assumption. AT&T’s committee did not accept the acquisition and Comcast offered to merge with AT&T broadband to establish AT&T Comcast. AT&T assets have been dropping and this coalition would probably help them by letting Comcast, which has a great understanding in the broadband business, work with the many resources AT&T has to present. The merger is set at $72 billion. Comcast thinks the coalition with AT&T will keep them rich and it will get 2.2 million broadband consumers and 22 million co responders, news and entertainment supporters. They are evaluating the merger to decide if the aftermath will be an accomplishment or a downfall (Brinkerhoff, 2010). Industry Description: AT&T, is considered to be a telecommunications industry, and is among the world’s premier voice, video, and data communications companies serving millions of consumers, businesses...
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...[Type the company name] | Comcast Corporation | Financial Analysis of 2013 Annual Reports | | [Type the author name] | | Analysis by Page Table of Contents Analysis by Page 1 Introduction 2 Property and Equipment 3 Figure 1: Property and Equip Details 3 Intangible Assets 4 Figure 2: Review of Intangible Assets 4 Goodwill 6 Figure 3: Review of Goodwill 6 Liabilities 7 9 Other Capital Ventures 11 Works Cited 12 Introduction The Comcast Corporation is the largest cable and home internet provider in the United States. The company functions as a cable provider and ISP, including telephone services for residential and commercial customers throughout the US. This makes Comcast a central focus for both customer and competitor criticism and deserves serious financial analysis and inquires. Comcast recently stating the company was looking to invest in acquiring its competitor Time Warner Cable has brought the company to the attention of many financial firms considering the possible domination the company could holder over its industry. This analysis will be used as a mean of reviewing the financial standing of the Comcast Corporation and analyze these resources the company has at hand. Property and Equipment Figure 1: Property and Equip Details The amount of property and equipment the company has on file for the years for 2013 and 2012 are $72, 414 and $66,657 respectively. The property and equipment are stated at cost. The...
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...HBCFinancial Analysis: The Value of Comcast before the Acquisition: We use the DCF (Discounted Cash Flow) analysis to estimate the value of Comcast before the acquisition. First, we want to calculate the expected future free cash flows available (Appendix 1) after making necessary expenditures for the firm to continue as a going concern. In order to get the projected financial statements, we made following assumptions: * Growth rate: We believe Comcast has entered the mature stage of the business lifecycle. So its growth rate should be relatively stable and not higher than the general GDP growth rate. We assume its revenue will grow at 1% from 2011 to 2015 and then decrease to 0 because we don’t believe the industry has a prospective future. * EBITDA: According to the historical data, EBITDA accounts 42% for the revenue on average. We use this average percentage to predict the future EBITDA. * Capital Expenditure: Based on the historical data on the financial statements, it is obvious that Comcast’s capital expenditure has a decreasing trend. So we just assume the company’s Capex is declining at an annual rate of 1% since 2010. * Net Working Capital: Also according to the historical growth rate of NWC, we chose 10% as the annual growth rate of NWC. * WACC: We use the average WACC of the CATV system industry which is 8%. * Unlevered free cash flow is often useful when an investor is interested in acquiring a company. The company's unlevered free...
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...savvy financial analyst researching Comcast Corporation. First, I research and provided a company overview. Secondly, I collected financial statement for the past 3 years and they are provided in the attached appendix. I also evaluated the company’s vulnerability, such as threats and global competition. Next, I reviewed the financial trends of the company, and predicted how these trends will impact financial performance in future periods. Finally, I gave the performance of the stock in the periods presented on the company’s financial statements, discuss how the stock is likely to perform in the future, what type of investor would be drawn to this stock, and make a recommendation to management to improve stock performance. Introduction Comcast Cable continues to drive innovation, increase new product introductions, transformed the customer experience, and has successfully integrated NBC Universal. Comcast derives the bulk of its revenue from television, Internet, and digital phone services offered in 39 states and the District of Columbia. Company Overview Comcast Corporation (NASDAQ: CMCSA, CMCSK) is one of the world's leading media, entertainment and communications companies. Comcast is principally involved in the operation of cable systems through Comcast Cable and in the development, production and distribution of entertainment, news, sports and other content for global audiences through NBC Universal. Comcast Cable is one of the nation's largest...
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...Abstract Comcast Corp (NASDAQ:CMCSA) is a global media and technology company. The Company's business segments are: Cable Communications, Cable Networks, Broadcast Television, Filmed Entertainment, and Theme Parks. The Cable Communications segment offers video, high-speed Internet, and voice services to residential and business customers under the XFINITY brand name. This segment also provides business services, such as cellular backhaul services to mobile network operators; Ethernet network services; and online advertising services. The Cable Networks segment operates national cable networks, which provide entertainment, news and information, and sports content; regional sports and news networks; international channels; and cable television production operations, as well as owns digital media properties. The Broadcast Television segment operates NBC and Telemundo broadcast networks, NBC and Telemundo owned local broadcast television stations, and broadcast television production operations, as well as owns digital media properties. The Filmed Entertainment segment produces, acquires, markets, and distributes live-action and animated filmed entertainment under the Universal Pictures, Focus Features, and Illumination names. This segment also develops, produces, and licenses stage plays, as well as owns digital media properties. The Theme Parks segment operates theme parks; studios; Island of adventures; and a dining, retail, and entertainment complex. Comcast Corporation was founded...
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...The Comcast Corporation’s annual report holds a wealth of information not only about the company finances but company history and current assets. The report opens with the company’s name and logo, state of incorporation, address of principal executive offices, and the I.R.S. Employer identification number. The opening or introduction page also includes the most up to date stock information including the title of each class; which has the stock types (Common, Special Common, or Exchangeable subordinated debentures), and the values and dates due. The name of each exchange that the stock has been registered (NASDAQ Global Select Market or NYSE) is also included. There is in fact so much information offered in the introduction page that one could spend hours there alone. I think that to have a good understanding of the company’s outlook it’s best to focus on the financial statements, Notes to the financial statements and the Management’s discussion and analysis. The Comcast Corporation’s financial statements include the balance sheet, the income statement and the statement of cash flow. The Consolidated balance sheet shows that as of December 31, 2011 the total assets totaled $157,818 (in millions, except share data), compared to the total assets of $118,534 in 2010. Some of these assets listed are Film and television costs of $5,227. These costs consist of the estimates of fair value for released films and television series; completed, not released theatrical films; and television...
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...Justin Webb ACCT 221 Principles of Accounting II October 25, 2015 Comcast SEC 10K Professor Nancy Christie Abstract An SEC 10K Report is a summary of a company’s performance that is sent to the Securities and Exchange Commission. The yearly 10K report generally contains a lot more detail than a quarterly report that is available to stockholders, employees, or anyone with a vested interest in the company. Within the yearly 10K Report, detailed accounting statements are shown. People can use these statements to evaluate the financial stability of a company. Outlined within the report are financial statements, allowance for doubtful accounts, as well as other company information. Company Background Comcast Corporation is an American multinational mass media company and is the largest broadcasting and Cable Company in the world by revenue. It is the second largest pay-tv company after the AT&T-DirecTV merger and largest residential Internet Service Provider in the United States. It is also the nation's third largest home telephone service provider. Comcast services U.S. residential and commercial customers in 40 states and the District of Columbia. Comcast Headquarters Comcast is headquartered in Philadelphia, Pennsylvania. The company’s state of incorporation is also the state of Pennsylvania. Brian L. Roberts is Comcast’s Chairman and Chief Executive Officer. Michael J. Angelakis is Comcast’s Chief Financial Officer. Lawrence J. Salva is Comcast’s Chief Accounting...
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...Comcast: A Leader in Technology Innovation Overview of Comcast Comcast was founded in 1969 in Pennsylvania by Ralph Roberts, Joe Roberts, and Julian Brodsky after Roberts bid successfully for cable franchises in Philadelphia. After this success he decided to expand the company’s operations further and in 1972 they took the company public due to the stagnation of subscriber rates. Comcast decided to move into the telephone business in 1988 when they purchased Amcell, this was the first time a cable company was able to offer their customers telephone service from another source other than the telephone providers. Ralph Roberts named his son, Brian L. Roberts to be the next president of the company which took everyone by surprise but he turned out to be a very efficient manager. In the mid-1990s there was an increase in activity for the cable and telecommunications industries due to deregulation which brought the cable and telephone companies into competition with one another, an increase of mergers and acquisitions were seen since many companies wanted to build more efficient networks. Microsoft Corporation decided to invest one billion dollars into Comcast so they would have a cable partner that could test “ interactive television and high-speed computer services,” (Funding Universe) they decided to choose Comcast due to them having the most advanced cable systems in the country at the time. Around the same time Microsoft invested, Comcast converted to a new fiber-coaxial...
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... Organizations and companies face many new and increasing complex challenges in today’s complicated business world. Because of the nature of our society and changes in our workforce resolving these challenges are becoming more and more difficult for today’s managers. Today, if a company is to be successful, management and the leadership groups must consider many things besides the bottom line. Management must ensure that their vision and mission statements reflect the true meaning of the company’s goals and objectives. This communication of the goals and objectives can be done in several different methods. Organizations must take a hard look at their management and leadership styles and if fits into the culture the organization. Management must also ask themselves if they are developing company loyalty from the employees and if the working environment is encouraging employees to be committed to the fulfilling the goals and objectives of the company, thus being about motivated employees for the success of the company. Management should also be willing to solicit feedback from employees, shareholder and customers to determine how they are communicating a common message of what management desires the organizational culture to be and to ensure that the vision and mission statement is clear for all to see. This paper will look at two leaders in the communications field, Comcast and Starband Communications. We will look at issues that each company has in common with Gene...
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...Specialization-1 vs. Diversification-0 There is an ongoing debate in the business world between specialization and diversification. Companies like Fitbit and Lululemon benefit from their expertise and innovation in niche markets, whereas companies like PepsiCo and Koch Industries benefit from their diverse product and service lines that appeal to a wide variety of customers in several unrelated markets. So which business strategy is more effective in creating value for the company and its shareholders? While this question is not entirely answered by a quantitative analysis, given that businesses are dictated by more than the numbers, this research report addresses the underlying question by analyzing the conglomerate discount using ten company examples. The Conglomerate Discount The general idea behind the conglomerate discount is that companies with multiple unrelated business segments are unfairly valued in the market place as a result of rolling up the various divisions under one, larger parent company. Proponents of the conglomerate discount theory argue that the market essentially penalizes companies that diversify their portfolio of businesses by valuing the conglomerate company at a market value that is less than what the sum of the values of unrelated segments would imply. Because the operations of the business units vary tremendously, an investor that wants to generate a return on one division of the conglomerate must also invest in the multiple other unrelated...
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...After several months bidding, Comcast finally win and value at $72 billion on this merger. Comcast has confidence in merging, because they believe that this merger will not only reduce their cost but also increase the market share. Needless to say, this merging would be beneficial for both AT&T and Comcast. Firstly, Comcast will still focus on its cable and broadband business and engage in innovation the cable and broadband services. By merging AT&T, Comcast will absorb the telephone services from AT&T, who is the leader in this industry. This acquisition would allow the new corporation, AT&T Comcast, to develop and provide a variety of correlated products, which would increase the economies of scope. Secondly, because the consumers’ demands for high-tech are increasing, the future of broadband technology is very impressive. Comcast has the potential to leading this industry if merging with AT&T. From the case analysis, AT&T Comcast will take over 22 million cable subscribers, which is about 30% of U.S. cable subscriber. Also the new company would become the largest cable operator. This would be a great opportunity for AT&T Comcast to lead the broadband industry. Thirdly, becoming the largest cable operator, AT&T Comcast will decrease the threat of programmers (Disney, Viacom and News Corp) and decrease the threat from substitutes such like DIRECTV, which is satellite operator. The best way to determine whether the acquisition is successful is...
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...Outstanding number of shares e. Cumulative or non-cumulative f. Participating or non-participating 3. Discuss Treasury Stock transactions over the past three years and explain its affect on total stockholder's equity and retained earnings. The portion of shares that a company keeps in their own treasury. Treasury stock may have come from a repurchase or buyback from shareholders; Treasury stock is the portion of shares that a company keeps in their own treasury. Comcast Corp's treasury stock for the quarter that ended in Sep. 2015 was $-7,517 Mil. Category: Retained Earnings 1. Use the following equation and show how the Retained Earnings account has changed over the past two years. Retained earnings, beginning balance + Prior period adjustments = Retained earnings, adjusted balance 2014 + Net Income - Retirement of Treasury stock - Dividends = Retained earnings, ending balance Comcast Corp's retained earnings for the quarter that ended in Sep. 2015 was $20,883 Mil. In 2014 the retained earnings was 21,539 Mil. A loss in a business’s cash flow decreases the retained earnings for Comcast Corporation. Category: Analysis 1....
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...| Review of Comcast Corp Annual Report 2012 | | | Review of Comcast Corp Annual Report 2012 | | Comcast Devry university October 13, 2013 Authored by: Traci Rood Comcast Devry university October 13, 2013 Authored by: Traci Rood TABLE OF CONTENTS INTRODUCTION…………………………………………………………2 QUESTION 1………………………………………………………………3 QUESTION 2………………………………………………………………4 QUESTION 3………………………………………………………………4 QUESTION 4………………………………………………………………5 QUESTION 5………………………………………………………………6 QUESTION 6………………………………………………………………6 QUESTION 7………………………………………………………………7 QUESTION 8………………………………………………………………7 QUESTION 9………………………………………………………………8 CONCLUSION…………………………………………………………….9 WORKS CITIED………………………………………………………….10 INTRODUCTION Comcast is a corporation dealing in global media and technology. They are made up of two primary businesses, Comcast and NBCUniversal. Comcast was originally founded in 1963 and then incorporated in 2001 in the state of Pennsylvania. The acquisition of AT&T Broadband put the now CEO, Brian Robert’s name on the map, at least in the cable industry.¹ NBCUniversal was acquired in 2011. They operate under five different segments; Cable Communications, Cable Networks, Broadcast Television, Filmed Entertainment and Theme Parks.² The combined companies total 129,000 employees. Comcast has led the pack when it comes to cable operations. Especially in the last ten quarters. Their average operating cash flow growth has been 6.8%...
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...Sheree Starr Strategic Management-5480 Florida Institute of Technology Dr. Uchenna Nwabueze April 07, 2013 Executive Summary Major Player’s in the U.S Voice-over Internet Protocol market namely Comcast Corporation, Time Warner Cable, Cox Enterprises and Vonage have embraced internet technology and wireless broadband making VOIP one of the most sought out service. Skype’s partnership with AT&T only fuels the boost usage of Voice- over Internet Protocol usage over land line usage. In the wake of these technology advancements, it became clear to entrepreneurs that offered voice traffic and internet service would be one of the next major applications to take full advantage of Voice-over Internet Protocol. There are more advances than innovations in the VOIP world. That’s because some of the most important developments had more to do with commercial and political maneuvers than with technical creativity. One of the most prominent developments was net net neutrality which enables user access to participating networks that advocates no restrictions to materials throughout the modes of communication allowed online ("The mobile World," 2011, para. 4). Further, this industry also have to consider pressures influenced by the government ( FCC) that could dismantle net neutrality by limited user access as well as decrease the power of big wireless communication giants like AT&T. Still, such maneuvers often helped spread the benefits of VOIP much more than technical innovation...
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...competition, technology, the economy, and social trends have started to have a significant impact on the financial industry. To succeed, investment companies need to offer a wide gamma of products coupled with expert advice. Therefore, Intersect Investments needs to consider carefully its strengths, weaknesses, opportunities, and threats as part of its strategic planning process. This paper will analyze benchmarking research made on companies dealing with transformational issues such as Coca-Cola, Ford Motor Co. Apple Computers and Legion Paper Co. Some of those organizations are global leaders within their respective industry. Therefore, any benchmarking analysis is relevant to the current situation at Intersect Investments. Coca-Cola Synopsis by Bruce McCormack It has become a cliché to state that tough times demand tough measures. The terrorist attacks of September 11, 2001 redefined this cliché for most businesses on Wall Street and throughout the world. One such Wall Street business, Intersect Investment Services, tried boldly to overcome the toughness of the times without making a drastic strategic shift, but found itself barely managing to survive. After four years of such struggles, Intersect is now looking to vision change to improve its brand image and begin establishing long-term customer relationships. Coca-Cola Company is not unlike Intersect in its struggles suffered after 9/11 or its attempts to re-establish superiority in the market based on...
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