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TECHTV GETS REBOOT
Sun Dec 28, 7:00 PM ET
MEREDITH AMDUR and JOHN DEMPSEY
NEW YORK (Variety) --- Comcast's efforts to boost its programming assets and subscriber reach will be rewarded next month when it is expected to acquire Paul Allen's computer-info channel TechTV to merge it with Comcast's fledgling G4 channel.
Deal is believed to be worth around $300 million, a welcome cash infusion for Allen's investment vehicle Vulcan Ventures, which is grappling with unprofitable stakes in Charter Communications, the third largest cable operator in the U.S., and the privately owned DreamWorks.
The merger of G4 and Tech TV is intended to combine the best original programming of each into a new tech-savvy, videogame-focused network reaching around 45 million subs. G4 currently claims 12.5 million, nearly 10 million of which overlap with Tech TV's roughly 43 million base.
The merged network will be called neither Tech TV nor G4 but probably some mix of the two.
The combined network will be targeted to the highly desirable male 18-34 demo. G4, which has focused heavily on the videogame lifestyle, will combine TechTV's computer and technology-based original programming to widen its appeal.
Charlie Ergen's satellite distributor EchoStar retains a 10% stake in TechTV, which Comcast is also negotiating to buy out.
Comcast is fully aware that cable operators who carry G4 or Tech TV may give the company a hard time over the merged network, claiming that the changes in programming represent a breach in the carriage contract.
These cable operators might threaten cancellation of the merged network unless Comcast agrees to a reduction in monthly license fees. Comcast's counterargument will be that the young-male-appeal content of both networks is substantially the same, and the merged net will end up delivering more viewers than the sum of its two parts.
TechTV will become Comcast's second wholly owned cable net, alongside the Golf Network. Comcast, by far the largest cable operator (it reaches 22 million subscribers), also owns Comcast Sports Net in Philadelphia and controlling stakes in E! Entertainment TV, the Style network and the Outdoor Life Channel. Comcast last month created a Chicago regional sports channel, signing cable rights to four of the Windy City's pro teams (White Sox, Cubs, Bulls and Blackhawks).
Comcast has previously expressed interest in buying existing cable networks and investing in new ones. Company is searching for an executive to take charge of all of its programming assets, and it even held talks to buy out Vivendi Universal Entertainment, finally balking at the high price. NBC wound up engineering the purchase.
And a few months ago, Comcast opted to sell its controlling stake in QVC to Liberty Media for a rich $7.9 billion, which helped it considerably reduce its debt load. Comcast has also considered trying to buy out Disney's stake in E! and Style in order to fully consolidate their financial results in its quarterly earnings. Comcast is awash in cash and liquid assets thanks to large stakes in Liberty Media and Time Warner. Some believe it could make a major content play for MGM or even Disney, though chief exec Brian Roberts has shown himself a highly disciplined dealmaker unlikely to take major risks with shareholders' funds.
While the new TechTV/G4 channel is clearly niche, videogames are big business. An estimated 145 million players fork over some $10 billion annually on vidgames.
G4 chief exec and founder Charles Hirschorn and chief operating officer Debra Green will stay on as CEO and COO of the merged network, respectively.
Neither Comcast nor Vulcan would confirm or deny deal terms, while EchoStar reps were not available for comment.
Source: http://story.news.ya...v_gets_reboot_1
Sun Dec 28, 7:00 PM ET
MEREDITH AMDUR and JOHN DEMPSEY
NEW YORK (Variety) --- Comcast's efforts to boost its programming assets and subscriber reach will be rewarded next month when it is expected to acquire Paul Allen's computer-info channel TechTV to merge it with Comcast's fledgling G4 channel.
Deal is believed to be worth around $300 million, a welcome cash infusion for Allen's investment vehicle Vulcan Ventures, which is grappling with unprofitable stakes in Charter Communications, the third largest cable operator in the U.S., and the privately owned DreamWorks.
The merger of G4 and Tech TV is intended to combine the best original programming of each into a new tech-savvy, videogame-focused network reaching around 45 million subs. G4 currently claims 12.5 million, nearly 10 million of which overlap with Tech TV's roughly 43 million base.
The merged network will be called neither Tech TV nor G4 but probably some mix of the two.
The combined network will be targeted to the highly desirable male 18-34 demo. G4, which has focused heavily on the videogame lifestyle, will combine TechTV's computer and technology-based original programming to widen its appeal.
Charlie Ergen's satellite distributor EchoStar retains a 10% stake in TechTV, which Comcast is also negotiating to buy out.
Comcast is fully aware that cable operators who carry G4 or Tech TV may give the company a hard time over the merged network, claiming that the changes in programming represent a breach in the carriage contract.
These cable operators might threaten cancellation of the merged network unless Comcast agrees to a reduction in monthly license fees. Comcast's counterargument will be that the young-male-appeal content of both networks is substantially the same, and the merged net will end up delivering more viewers than the sum of its two parts.
TechTV will become Comcast's second wholly owned cable net, alongside the Golf Network. Comcast, by far the largest cable operator (it reaches 22 million subscribers), also owns Comcast Sports Net in Philadelphia and controlling stakes in E! Entertainment TV, the Style network and the Outdoor Life Channel. Comcast last month created a Chicago regional sports channel, signing cable rights to four of the Windy City's pro teams (White Sox, Cubs, Bulls and Blackhawks).
Comcast has previously expressed interest in buying existing cable networks and investing in new ones. Company is searching for an executive to take charge of all of its programming assets, and it even held talks to buy out Vivendi Universal Entertainment, finally balking at the high price. NBC wound up engineering the purchase.
And a few months ago, Comcast opted to sell its controlling stake in QVC to Liberty Media for a rich $7.9 billion, which helped it considerably reduce its debt load. Comcast has also considered trying to buy out Disney's stake in E! and Style in order to fully consolidate their financial results in its quarterly earnings. Comcast is awash in cash and liquid assets thanks to large stakes in Liberty Media and Time Warner. Some believe it could make a major content play for MGM or even Disney, though chief exec Brian Roberts has shown himself a highly disciplined dealmaker unlikely to take major risks with shareholders' funds.
While the new TechTV/G4 channel is clearly niche, videogames are big business. An estimated 145 million players fork over some $10 billion annually on vidgames.
G4 chief exec and founder Charles Hirschorn and chief operating officer Debra Green will stay on as CEO and COO of the merged network, respectively.
Neither Comcast nor Vulcan would confirm or deny deal terms, while EchoStar reps were not available for comment.
Source: http://story.news.ya...v_gets_reboot_1
If this is true, it might be good. It does seem like TechTV has been going downhill since the days of ZDTV. I've never seen G4, but if they merge the channels, this could be interesting...
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