General Electric is in talks with cable TV leader Comcast to take over management of NBC Universal, reports the Chicago Tribune. Under the terms of the deal, Comcast would pool cash and its cable channels into a new company that would control with a 51 percent stake. GE would contribute NBC Universal and own 49 percent. The deal would propel Comcast onto the same level as Time Warner, Walt Disney, and News Corp. GE’s move is pressured by French conglomerate Vivendi SA, which owns 20 percent of NBC Universal and must decide in the next two months whether it wants to sell its stake for at least $4 billion of hold on to its interest. If Vivendi sells, GE will be responsible for that large sum or find a new investor. “If electronic distribution is the key to the future, Comcast wants to make sure they have a central role in the distribution of movies and TV online through video on demand, and this should help in that regard,” said Christopher Marangi, an analyst with Gabelli & Co., a Comcast shareholder. “We estimate that all of NBC Universal is worth $20 billion to $25 billion,” Laura Martin, a media analyst with Soleil Securities, said in a report Thursday. “We don’t expect Comcast to have much competition for the asset, so the price might be inexpensive.”
GE Talking to Comcast, Exiting Out of Show Business
General Electric is considering joining forces with Comcast, allowing the cable company to take charge of NBC Universal.
October 5, 2009