Report: Comcast Closer to NBC Universal Deal

Authored by Mark Hefflinger on November 2, 2009 - 7:50am.

New York - Comcast (NASD: CMCSA) is closer to a deal with General Electric (NYSE: GE) to take over control of its NBC Universal unit, after meetings last week concluded with a tentative agreement on the main points, The New York Times reported, citing people briefed on the talks. Under the proposed deal, Comcast would contribute "several billions of dollars in cash and its own stable of cable networks," and receive a 51% stake of NBC Universal.

GE, which owns 80% of NBC Universal, would see its stake shrink to around 49% and contribute some $12 billion in debt into the company -- but is eventually expected to sell its ownership interest.

The Times reports that the main sticking point for the deal are negotiations with Vivendi -- which owns 20% of NBC Universal -- over a valuation for the company.

While rival bidders for NBC Universal have emerged, including News Corp. (NYSE: NWS), sources told The Times that talks with Comcast are far enough along that a different deal was unlikely.

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