History and Background
Comcast began in 1963 and is known as the Comcast Corporation. The company was formerly named the American Cable Systems and has its headquarters in Pennsylvania. The company started as a small cable system company in Mississippi and its founders are Julian A. Brodsky and Ralph J. Roberts; two individuals with remarkable minds. Upon moving to Philadelphia in 1969, the name changed to the present-day Comcast Corporation. It is one of the largest cable television providers in the United States which deals with communication products and entertainment services. However, the business had its success based on various strategic investments done in the past to ensure its growth over the years. These investments include the acquisition of rival systems such as the Storer Communications way back in 1988, the Group W. Cable in 198 and Jones Intercable Incorporation in 1999 among others.
The company made its first Initial Public Offering in 1972 at time when it allowed public individuals to invest in the business. The company was listed in the stock exchange and has been trading its shares ever since under the ticker name CMCSA with its stock price being on a consistent rise indicating an excellent performance that made it attractive to customers. The share price is affordable for most investors hence any individual can get some for his or her portfolio. It is listed in the NASDAQ stock market under the identified ticker symbol. In 1986, the company was able to add a record of over 1.2 million clients into their cable system after making an investment and acquiring the Group W Cable Company. It was a significant boost in their initial market share within the United States. Their revenues went up instantly and increased their profitability to its investors. Two years later, Comcast corporation went ahead to acquire half of Storer Communications and six years later in 1994, took over Maclean Hunter’s cable cooperation with its 550,000 clients to reach the position of the third largest cable tv operating business in the United States.
Just like is the case with most large corporations in the United States, Comcast has been in the habit of baying out or forming mergers with other organizations. Xfinity cable communication is such case with the latter becoming a subsidiary since 1981. In fact, Xfinity cable brand name was Comcast for over 29 years 1981 to 2010 before being rebranded to its current name. Xfinity rebranding to its current name did not change much in regards to its operations and ownership. It was just a way to make it attractive to consumers by adopting a name that was consistent with changing times in the country and cable industry. The company is fully owned by Comcast Cable Communications with the parent company being the Comcast Corporation.
What is more, Xfinity markets internet, cable television and internet across the country and is amongst the dominant providers. NBC and Telemundo are also subsidiaries of Comcast. These two are over the air broadcasting television networks that had been in the American market and suffering financially for some time.
The coming in of Comcast was in a way necessary as it assured them financial flow for their operations while in turn Comcast increased its size in terms of sales and market share. Comcast is also renowned for its ownership of multiple cable only channels which include the USA Network and MSNBC. Other outfits that are partially or fully owned by Comcast within the United States include the Universal Parks and Resort that owns a series of theme parks round the country and the famous film entertainment company Universal Pictures. From this information regarding the organizations that are partially or fully owned by Comcast, it is evident that the company has had its presence in the country for long and across various industries. This has arguably made the company among the largest in the country that offer entertainment ranging from cable television, theme parks and internet provision. Only a couple of years ago, Comcast made a major agreement with Time Warner Cable which was described by book makers as one of its kind because of the amount of money that was involved. In the much publicized equity swap between the two large organizations, an exchange in the neighbourhood of $45.2 billion was made. In what keen observers termed as a huge step by Comcast to dominate communication and internet provision ion the company, the equity swap rendered Times Warner Cable 100% entity of Comcast. There is very little that stands in the way of Comcast’s further growth.
Its performance in the business of cable network was impressive in the past. It also had invested in E.W. Scripps cable systems that enlarged further its customer base by over 800, 000 clients. The business was expanding rapidly, and it was because of strategic expansions that took over its rival companies through acquisitions. In spite of the challenges that Comcast has had with its consumers in America, the corporation continues to grow in size and market share.
Thanks to its very ambitious expansionist strategy, the company has over the years managed to rise up from its numerous challenges which are majorly legal. It is still expected that the corporation will continue growing as it targets upcoming and established corporations for mergers and acquisitions. In 1997, it received a further boost in its capital when Microsoft Corporation invested one billion dollars. These investments were used in enhancing the operational efficiency and some used in future acquisitions cable businesses across the United States. Before the end of the 18th century, in 1998, Comcast Corporation added over one million subscribers through making acquisitions of Prime Communications and Jones Intercable Communications. The business has been growing since its inception, and its investors are often earning income in the form of dividends issued to them. Its history reflects acquisition as a significant investment strategy that helps in eliminating competition from rivals within the market. However, it enjoys a large customer base within the cable systems industry with investments in other sectors of entertainment. They have been able to maintain the business name after its relocation to Philadelphia way back in 1969. The reason for the many years of success at Comcast are credited to the set strategic goals that repositions the company way ahead of competition and its knowledgeable and abled management who are able to deal with the numerous challenges the company faces. Despite its history, Comcast Corporation seeks to venture more into entertainment and has continuously been improving their customer experience through the introduction of additional features into their cable network services.
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