GE, Comcast Close to Deal on NBC Universal

Comcast Corp. and General Electric Co. (GE) agreed to value GE’s NBC Universal at about $30 billion as they discuss creating a joint venture to own the entertainment division, Bloomberg News and the Wall Street Journal reported today, citing sources familiar with the matter.

Rumor has it that Comcast would start out with a 51% stake in NBC, with an option to increase its ownership position to 100% during the next three to seven years. The only wildcard is Vivendi SA, which owns 20% of NBC Universal and is not yet part of the agreement. According to news reports, the deal would be dependent on the French telecom and media company selling its stake.

According to this morning’s report in the Wall Street Journal, the two companies are ironing out the final details and a deal could come as early as this week.

Bernstein Research has estimated that the combined media giant “would be calling the shots for one out of every five viewing hours in the United States.”

Rumors first surfaced about a potential deal at the end of September, although sources say the talks have been ongoing since the spring.

Of note, any potential deal is subject to regulatory approval, a long and potentially contentious process which The New York Times discussed this morning.

The Wall Street Journal reported on the story last week and this morning.
The New York Times has more.

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