- Final Hurdle Cleared, Comcast Prepares To Buy NBC
- Getting Vivendi out of the way was the sticking point, but GE has a deal
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How much is Vivendi's stake in NBC Universal worth?
According to NBCU's parent company, General Electric, it's $5.8 billion.
That's how much it will cost GE to part ways with Vivendi, more than five years after their partnership created one of the industry's largest media conglomerates. Now with GE able to dispose of Vivendi's 20 percent ownership, it is believed the door is open for Comcast to take a controlling interest in NBCU from GE for some $30 billion.
The deal, once its finalized, would not push GE out completely. The company that has owned NBC since 1986 will remain a minority owner in the overall conglomerate while Comcast will look at having more direct input in some of the programming that comes through its cable systems on channels such as NBC, MSNBC, Bravo, Syfy and others.
Vivendi had never intended to be a part of the fold long-term. In the 2004 deal that created NBCU, Vivendi brought with it Universal Studios as well as several television properties including USA Network, and the then SciFi Channel. They stayed on board with a 20 percent stake, however, and only watched as NBCU went from being a highly profitable business to one suffering serious declines in tough economic times, and a very uncertain media market, according to The New York Times.
Although negotiations have believed to been going on for a long time between GE and Comcast, the deal is not finalized and a chance remains it could fall apart. If it does, that could mean GE is in NBCU for the long haul since there is no other company expressing interest in purchasing the company.
Otherwise, GE will be able to head back to its industrial roots, its core business before looking to diversify with the NBC acquisition in the mid-1980s.
GE and Vivendi are expected to announce their finalized deal Thursday.
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About the Author
Michael Hinman is the founder and site coordinator for Airlock Alpha and the entire BlipNetwork. He owns Quantum Global Media Inc., the parent corporation of the BlipNetwork. He's a print journalist by day, and lives in Tampa, Fla.
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