Comcast 2014 Annual Report Download - page 54

Table of Contents
Cable Communications Segment
NBCUniversal Segments
Time Warner Cable Merger
On February 12, 2014, we entered into the merger agreement with Time Warner Cable. Time Warner Cable is among the largest
providers of video, high-
speed Internet and voice services in the United States, located mainly in five geographic areas: New York
State (including New York City), the Carolinas, the Midwest (including Ohio, Kentucky and Wisconsin), Southern California
(including Los Angeles) and Texas. As of December 31, 2014, Time Warner Cable had 11.0 million video customers, 12.3 million
high-
speed Internet customers and 5.6 million voice customers. As a result of the Time Warner Cable merger, Time Warner Cable
stockholders will receive, in exchange for each share of Time Warner Cable common stock owned immediately prior to the Time
Warner Cable merger, 2.875 shares of our Class A common stock. We estimate that at the time of closing, Time Warner Cable
stockholders will own approximately 24% of the outstanding shares of our common stock. Because the exchange ratio was fixed at
the time of the merger agreement and the market value of our Class A common stock will continue to fluctuate, the number of
shares of Class A common stock to be issued and the total value of the consideration exchanged will not be determinable until
•
an increase in Cable Communications segment revenue of 5.5% to $44.1 billion and an increase in
Cable Communications segment operating income before depreciation and amortization of 5.3% to $18.1
billion
•
an increase in Cable Communications segment capital expenditures of 13.9% to $6.2 billion primarily due
to our continued investment in the following initiatives:
•
the deployment of our IP and cloud-
enabled video platform, referred to as our X1 platform and the
launch of our Cloud DVR technology, which is now available in over 50% of our markets
•
the deployment of wireless gateways in customers
’
homes
•
the improvement of our network infrastructure to increase network capacity
•
the expansion of our services to small and medium-sized businesses
•
the expansion of our home security and automation services
•
an increase in total NBCUniversal revenue of 7.5% to $25.4 billion, including $1.1 billion of revenue
associated with the broadcast of the 2014 Sochi Olympics, and an increase in total NBCUniversal
revenue of 2.9%, excluding the impact of the 2014 Sochi Olympics
•
an increase in total NBCUniversal operating income before depreciation and amortization of 18.1% to
$5.6 billion, including $130 million of operating income before depreciation and amortization associated
with the broadcast of the 2014 Sochi Olympics, and an increase in total NBCUniversal operating income
before depreciation and amortization of 15.3%, excluding the impact of the 2014 Sochi Olympics
•
an agreement with the International Olympic Committee to extend NBCUniversal’
s broadcast rights for
the Olympic Games from 2022 through 2032
•
the continued investment in original programming and sports programming rights at both our cable
networks and broadcast networks and the continued investment in new attractions at our Universal
theme parks, including Orlando
’
s
The Wizarding World of Harry Potter
™
—
Diagon Alley
™
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Comcast 2014 Annual Report on Form 10
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