GE, Comcast edge closer to NBC Universal deal

Mon, 11/09/2009 - 7:50am
Mike Robuck

Comcast and General Electric may be on the cusp of announcing the creation of a joint venture over GE’s NBC Universal, according to published reports.

Yesterday, The Wall Street Journal reported that Comcast and GE had agreed to value NBC Universal for roughly $30 billion as one of the steps to creating the joint venture.

While GE and Comcast, the nation’s largest cable operator, iron out the details, Vivendi and its 20 percent stake in NBC Universal aren’t yet involved in the discussions.

Vivendi can notify GE between Nov. 15 and Dec. 10 on whether it intends to sell its stake. Comcast would like to have a 50 percent stake in the joint venture, which would include some of its assets as well as GE’s, but needs Vivendi to sell its stake.

Bloomberg reported this morning that Comcast would contribute $4 billion to $6 billion, as well as cable channels E!, Golf Channel and Versus. GE would offer up its 80 percent stake in NBC Universal, which includes theme parks, a movie studio, broadcast networks and cable channels USA, Bravo and CNBC.

Bloomberg said the two companies were looking to finish the deal over the next two weeks, and the resulting entity would have $9 billion in debt. The deal for the joint venture could take over a year to pass regulatory muster.

More Broadband Direct 11/09/09:
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•  GE, Comcast edge closer to NBC Universal deal
•  Cox Business scores with financial firms
•  Report: Cable on tap for 2nd Clearwire funding
•  Dish's earnings dip in Q3, subscribers grow
•  Windstream's revenue down in Q3; D&E purchase OK'ed
•  Moto targets IPTV with Mediaroom integration
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•  Sony: 'What we're doing is game-changing for TV'
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•  Broadband Briefs for 11/09/09



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