GE-Vivendi progress on NBC stake sale

27 Nov 2009

General Electric Company (GE), the world's largest power equipment maker and majority stakeholder in media giant NBC Universal Inc, is continuing its efforts to win over French media conglomerate Vivendi SA to sell its minority stake in NBC Universal to GE, in order to go ahead with its planned tie-up with Comcast Corporation.

GE chief executive officer Jeffrey Immelt was in Paris to speed up the negotiations with Vivendi chief executive Jean-Bernard Levy, The Wall Street Journal reported yesterday.

GE owns 80 per cent of NBC Universal while Paris-based Vivendi holds the remaining 20 per cent. On acquiring full ownership of NBC Universal, GE intends to sell a controlling 51-per cent interest to Philadelphia-based Comcast, the largest cable-TV operator in the US to create a joint venture company.

New York-based NBC Universal is one of the world's leading media and entertainment companies in the development, production and marketing of entertainment, news and information to a global audience.

The company operates a number of TV stations including NBC, USA, Bravo, MSNBC, CNBC, and Hulu as well as NBC Universal Television Group, the Universal Studios and theme parks in California, Florida, and Japan.

Analysts estimate the value of NBC Universal at around $30 billion, and the Vivendi's 20 per cent stake at approximately $6 billion.