GE to Buy 20% NBC Stake From Vivendi for Comcast Deal

December 1, 2009

(ChattahBox)— General Electric Co. has finally agreed on the terms of a long-anticipated deal to buy a 20 percent stake of NBC Universal held by French media giant, Vivendi SA. Once the deal with Vivendi is finalized, GE plans to turn around and sell a 51 percent stake in NBC Universal to Comcast, which is valued at about $30 billion.

According to the Associated Press, GE and Vivendi have not officially formalized the deal, but the price and terms have been agreed upon. The Wall Street Journal reports that GE would pay $5.8 billion for the NBC stake held by Vivendi. The French media giant had pushed for a number over $6 billion, but GE reportedly set a $6 billion ceiling.

The resulting deal with Comcast would make the company one of the nation’s largest entertainment companies. Comcast has its eyes on NBC Universal’s popular cable channels, such as Bravo and CNBC. The Telemundo broadcast network is also part of NBC Universal.

The Comcast deal would involve about $5 to $7 billion in cash with the additional contribution of its cable networks, to create a joint venture that would form the new NBC Universal. The joint venture company would own a 49 percent stake in the new NBC Universal, but would eventually divest its holdings.

Source


Comments

One Response to “GE to Buy 20% NBC Stake From Vivendi for Comcast Deal”

  1. Comcast Deal for NBC Stake from GE set for Thursday | ChattahBox News Blog on December 2nd, 2009 6:58 pm

    […] a day after General Electric Co. acknowledged the terms of a deal to buy a 20 percent stake of NBC Universal held by French media giant, Vivendi, Comcast is poised to jump in the fray and […]

Got something to say? **Please Note** - Comments may be edited for clarity or obscenity, and all comments are published at the discretion of ChattahBox.com - Comments are the opinions of the individuals leaving them, and not of ChattahBox.com or its partners. - Please do not spam or submit comments that use copyright materials, hearsay or are based on reports where the supposed fact or quote is not a matter of public knowledge are also not permitted.