The multi-billion dollar auction of Vivendi Universal's showbusiness empire headed into a crucial phase this week with Liberty Media dropping its bid to leave two lone rivals.
The auction of Hollywood properties including Universal Studios and the USA and Sci Fi cable TV networks is now a race between TV network NBC, owned by General Electric, and investors led by Vivendi vice chairman Mr Edgar Bronfman Jr, said sources.
Liberty, the Colorado-based cable TV investment company run by Mr John Malone, withdrew its offer yesterday, saying the value it could achieve in a purchase would not add up to the $14 billion sources have said Vivendi is seeking.
NBC - seen as the leading contender - sent Vivendi a letter on Saturday detailing a merger proposal that helps solve Vivendi's cash needs, a source familiar with the auction said.
However, Mr Bronfman - who ran the Universal empire when his family owned it - has been snapping at NBC's heels with a deal that would offer Vivendi more immediate cash to cut the debt.
Charged with getting Vivendi back on its feet after an acquisition spree by former chief Mr Jean-Marie Messier landed the company in financial straits, Vivendi Chief Executive Mr Jean Rene Fourtou kicked off one of the media industry's biggest auctions ever in May to untangle Vivendi from Hollywood and Universal.