Analyst: Swap Comcast for Time Warner

October 5, 2009 at 1:42 pm PT

Collins Stewart analyst Thomas Eagan thinks you may be swapping your Comcast (CMCSA) shares for Time Warner Cable (TWC) sometime soon.

In a note to clients this morning, Eagan writes that investors may rotate out of Comcast if the company decides to invest $12 billion to $14 billion for a stake in GE’s (GE) NBC-Universal, as rumored. The latest buzz on that deal is that it has a 50/50 chance of happening, according to a piece in the Wall Street Journal this morning.

If Comcast were to take a 51 percent stake in NBC-U, Comcast’s revenue from content would jump from 4.5% of the firm’s total sales to 30 percent, writes Eagan.

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Tagged with: Barrons, Collins Stewart, Comcast, digital, economy, frontpage, GE, NBC Universal, software, Tech Trader Daily, telecom, The All Street Journal, Thomas Eagan, Tiernan Ray, Time Warner Cable

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