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How General Electric set to buy Vivendi’s NBC Universal stake?

By Thomas Frommherz for CEOWORLD Magazine Updated:December 1, 2009

General Electric Co. (NYSE:GE) and Vivendi SA (PINK:VIVDY) (EPA:VIV) agreed on a $5.8 billion valuation for the French company’s 20 percent stake in NBC Universal. A deal with Vivendi would allow GE, NBC Universal’s 80 percent owner, to create an entertainment joint venture controlled by Comcast Corporation (NASDAQ:CMCSA) .

Shares of General Electronic Co (GE.N) gained in premarketing trading on Tuesday on news that the company has agreed to value NBC Universal for $5.8 billion with Vivendi SA (VIV.PA).

Shares of Comcast Corp (CMCSA.O) also gained 2.3 percent to $15.00 before the bell as the deal paved the way for the company’s proposed joint venture with GE.

Vivendi had originally valued its 20 percent stake in NBC Universal, acquired in 2004, at $6.1 billion, sources told Reuters earlier this month. But the two sides differed on that valuation, slowly narrowing their gap over the past few weeks. GE, which owns the remaining 80 percent, had offered around $5.6 billion about 10 days ago, a source had said then.

The two sides also have differed on when Vivendi would get paid: Vivendi initially wanted the entire payment upfront, while GE wanted to pay after its deal with Comcast closed. On Nov. 20, a source familiar with the negotiations told Reuters that Vivendi had agreed to accept payment for one-third of its stake until the deal with Comcast closes.

A deal for Vivendi’s stake has been a key obstacle to Comcast buying control of NBCU from GE. The Times reports that there is a tentative plan to announce a deal on Thursday. According to the Journal, the deal would value the existing NBCU at about $30 billion.

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