GE AND NBCU South Of The Border

GE and NBC Universal have endured a beating in the Mexican press for the last couple of weeks due to the decision of its financial arm to provide roughly five million dollars in financing to a local television station, Canal 40, that has been teetering on the edge of bankruptcy for some time. Station employees went on strike after salaries went unpaid. Mexican journalists have been quick to see the unsecured loan as a backdoor entryway into the Mexican market for NBC Universal's Telemundo network. This has raised the hackles of the owners of local media outlets because Mexican law prevents the foreign ownership of television stations. According to various media reports, GE yesterday issued a press release spelling out its stance. The press release is not on the GE Mexico website (although the site contains information about GE Day in Mexico and GE´s reiteration of its commitment to honesty) or the main GE site or the NBC Universal media site or the Telemundo section of the same website.

The various reports (I have not read the release myself and as mentioned I cannot find it, either) cite GE´s interest in putting together a Mexican-led investor group. GE's participation would then be that of a "neutral investor", which is allowed under Mexican law. In one article, a GE spokesperson is said to recognize the interest of NBC Universal and Telemundo in "participating" in Mexican media. The business plan for the station, according to the same source, includes an increase in local program production and finding "additional distribution channels for television programming."

I read this to mean that Telemundo is looking to air its programming on Canal 40.

Back in April, GE issued a release announcing a "vertical partnership between GE Commercial Finance Global Media & Communications and NBC Universal ... Through the alliance, NBC Universal will provide industry expertise to help Global Media & Communications better evaluate media assets, while Global Media & Communications will lend its financing expertise on behalf of key market initiatives by NBC Universal.  The team is now ... working together to help Telemundo, NBC Universal´s Spanish-language network, improve its presence in Mexico."

Looks like they were talking about Canal 40.