Comcast to buy DVC stock for $1.25 billion

Comcast is buying DVC Technology, the company that builds and manages Internet-based video content for cable and satellite providers.

Comcast will pay $1,250 per share, according to Bloomberg.

The deal is expected to close by the end of March, Bloomberg reported.

Comcast is expected pay $13 per share for the company, which provides digital video-on-demand (DVR) content for more than 50 million subscribers.

The Comcast-owned cable company will also acquire the video-delivery company and the media company, Comcast said.

The acquisition is expected bring Comcast into the digital-video business and will give it a greater presence in the emerging market for content delivery, according the Bloomberg report.

Comcast shares rose 2.5% to $66.25.

Comcast said it is seeking a buyer for DVC that would include technology and manufacturing expertise.

The company said in a statement that DVC’s “high-quality, cost-effective technology is an essential component of Comcast’s broadband portfolio and serves customers and advertisers.

The transaction will provide the company with additional digital video expertise and expertise in digital video delivery, including its video content delivery services.”

The deal will create a combined Comcast and DVC holding company, and the deal will be subject to approval by regulators, Comcast added.

Comcast’s media arm will be renamed Comcast Digital Media.