NEW YORK (
got rewarded with an upgrade for crafting a potentially nondilutive media asset deal with
Wells Fargo analysts upgraded Comcast to buy Friday after the company proposed the formation of a spinoff that would include the cable giant's media properties and NBC Universal.
Wells Fargo says the proposed deal would strengthen Comcast's control over content in an increasingly competitive Internet environment where video can be distributed at lower costs.
The deal, as Wells Fargo understands it, would not require the company to issue new shares or take on more debt to jeopardize its credit rating.
The news comes as
looks to sell its 20% stake in NBC Universal. GE controls the remaining 80% of the unit and said Thursday that it is considering a spinoff or IPO of the business.
Comcast would like to fold its media division into
and retain 51% of the combined business, according to reports by CNBC.
Comcast shares, which fell 7% Thursday amid the deal news and a broader market selloff, were largely unchanged in premarket trading Friday.