Comcast Corp, the largest US cable-television company, and General Electric are in talks to form a joint venture that would own GE's NBC Universal, according to sources with knowledge of the discussions.
Comcast would own more than 50 per cent of the film, broadcast and cable-television business, said the two sources. The Philadelphia-based company would contribute $4 billion to $6 billion plus cable channels including E! Entertainment, said one of them.
GE would contribute its 80 per cent stake in NBC Universal and transfer $12 billion in debt, one person said, although an agreement is not certain.
The structure being discussed would allow Comcast to acquire cable programming that Chief Executive Officer Brian Roberts has targeted as a priority for acquisitions. GE would retreat
from a business that some analysts have urged Chief Executive Officer Jeffrey Immelt to divest because it doesn't fit with the parent's industrial, finance and health care focus.
The plan hinges on Vivendi deciding to sell its 20 per cent stake in New York-based NBC Universal, operator of the broadcast network, a film studio, theme parks, and cable channels including USA, CNBC, MSNBC and Bravo, according to two people.
The venture would pay Vivendi over time, using cash generated from operations, one of the people said. Comcast values NBC Universal in the high $20 billion range, and could do the deal without jeopardising its dividend or share repurchases, said the person.
Spokesmen for GE and Vivendi declined to comment.
Bloomberg