Vivendi Universal has entered exclusive negotiations with General Electric aimed at merging its entertainment assets with those of US television network NBC.
Any deal would result in the creation of NBC Universal, the world’s sixth-largest media group, valued at more than $40 billion. The company will encompass the national, local and cable stations of NBC as well as Vivendi’s movie and television studios, cable networks and theme parks.
Under the terms of the preliminary agreement, Vivendi will retain a 20% stake in Vivendi Universal Entertainment (VUE) and will receive $3.8 billion cash and $1.6 billion towards debt reduction.
The deal comes at the end of a protracted bidding process which followed Vivendi’s decision to sell off its US businesses (see Party Is Over For Vivendi). In the final round, GE outbid a consortium led by by Vivendi vice chairman Edgar Bronfman Jnr (see Bronfman Dismisses Rival’s Bid For VUE).
