GE Completes RCA Acquisition
FAIRFIELD, Conn., June 9, 1986 -- PRNewswire -- General Electric Co. and RCA Corp. completed today the merger whereby GE acquired RCA for $6.4 billion in cash.
The price included $66.50 per share of common stock plus $42.50 per share of $3.65 preference stock and $40 per share of $3.50 preferred stock.
The merger was announced on Dec. 11, 1985, when the boards of the two companies approved a definitive merger agreement. It was approved by RCA shareowners on Feb. 13, 1986.
The U.S. Justice Department completed its review on May 21, 1986, and the Federal Communications Commission approved the transfer of the NBC and RCA broadcast and communications licenses on June 5.
John F. Welch Jr., chairman and chief executive officer of General Electric, will be chairman and chief executive officer of the combined company, which will have its headquarters in Fairfield.
RCA and NBC will become subsidiaries of General Electric.
Robert R. Frederick will remain president and chief executive officer of RCA. Grant A. Tinker will remain chairman and chief executive officer of NBC.
As a result of the Justice Department review, General Electric will sell, by Nov. 30, 1986, its vidicon tube business.
Also, the Federal Communications Commission approval requires General Electric to sell within 18 months five NBC radio stations in New York City, Chicago and Washington, D.C. -- the cities in which NBC also has television stations. Under FCC rules, a new owner cannot own television and radio stations in the same markets.
General Electric had 1985 earnings of $2.3 billion on sales of $28.3 billion. RCA had 1985 earnings of $369 million on sales of $8.97 billion.
/CONTACT: Bruce Bunch, 203-373-2039, or home, 203-263-5595; Jack Batty, 203-373-2044, or home, 203-268-1532; or Ford Slater, 203-373-2413, or home, 203-255-3343/
Copyright PR Newswire 1986 wire