Diller's IAC/Interactive Sells Stake In VUE To NBCU for $3.4 Billion In Stock, Cash

The ending has been written to one of the oddest chapters in entertainment industry history: Barry Diller has agreed finally to a deal that will end his role in the affairs of NBC Universal, opting to sell IAC/InterActive’s 5.44 percent stake in VUE for stock and cash valued at approximately $3.4 billion. The sale gives NBC Universal full control over VUE, which is owned by GE (80 percent)and Vivendi (20 percent).
Update:The sale has several components: IAC regains 56.6 million common and Class B common shares valued at about $1.4 billion; cash including $865 million in proceeds from U.S. Treasury bonds and $235 million from Vivendi; and advertising on NBCU properties valued at about $100 million over three years. IAC, which is in the midst of acquiring Ask Jeeves, will show an after-tax gain of about $330 million. All parties have been released from current litigation and potential claims.
VNU dates back to 2002, with IAC contributing its entertainment assets in a deal with Vivendi. IAC’s continuing stake has been a problem for NBC Universal since that company was formed a year ago.
I’ve been writing about Diller and Vivendi from the beginning. This reminded me of a CableWorld story from July 2002, when I predicted that Diller “will be one of the few involved with (former Vivendi CEO Jean-Marie) Messier to emerge in better shape than he started.”
NBCU press release | IAC press release | MKTW | WSJ (sub. req.)

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