crankyinvestor

Is It Time To Sell NBCU?

Media companies, like most others that were bought and sold, were priced as a function of earnings and cash flows, but with multiples that rose and fell based on the availability of credit.
GE's not going to get the 14 times earnings or 10 x cash flow that it could have when money was loose and life was easy. Selling NBCU in a time of tight credit makes no more sense than selling your home when prices are in a slump.
NBCU is a core asset of GE; it provides balance to the portfolio and has as much upside potential as any of the other divisions. A sale at distress price makes no sense whatsoever.