Comcast, the US cable giant, has announced that it will not be bidding for the US entertainment assets of Vivendi Universal.
Following a meeting on Wednesday, Comcast executives have decided not to make a formal offer. This represents a blow to Vivendi which is hoping to raise up to $14 billion from the sale of its American-based film studios, theme parks and television stations (see
Vivendi Entertainment Price Is Too High For MGM).
Comcast had been linked with a move for Vivendi Universal Entertainment (VUE) after selling its 58% stake in the shopping channel QVC for $7.9 million (see Liberty Buys Partner’s Stake In QVC). However, it now appears that the proceeds will be put towards debt reduction.
The withdrawal of Comcast and MGM leaves GE-owned NBC as the favourite to win the auction for VUE. Other interested parties include Viacom, Liberty Media, oil billionaire Marvin Davis and a consortium led by Vivendi vice-chairman Edgar Bronfman.
