Vivendi SA sells 7.66-per cent stake in NBC Universal to GE for $2 billion
27 Sep 2010
Vivendi SA, the French media and telecom conglomerate today said that it has sold 7.66 per cent stake in NBC Universal to General Electric Co (GE) for $2 billion.
The sale is in line with Vivendi agreeing in December 2009 to exit from NBC Universalby selling its 20 per cent stake in the entertainment giant to GE for $5.8 billion.
GE owns 80 per cent stake in the entertainment giant NBC Universal while Vivendi holds the remaining 20 per cent.
GE in turn will sell a controlling 51-per cent stake in NBCU as agreed by it in December 2009 to Comcast Corporation, the biggest US cable TV provider, for $13.75 billion in cash and assets. (See: GE in deal to sell NBC to Comcast)
Vivendi said in a statement that it will sell its remaining 12.34-stake to GE for $3.8 billion upon completion of the GE-Comcast transaction.
The GE-Comcast transaction would give the Comcast, the largest cable operator in the US, control over content for about 20 per cent of TV viewers. It is believed that the companies would preserve local news coverage and provide access to competitors on the content, like in previous media mergers.
