Lots of going back and forth since the first report last night about Comcast in talks to buy NBC Universal (NYSE: GE). CNBC’s Dan Faber is now reporting that GE would spin off NBCU into a new company that would be “merged with the content assets of Comcast.” Among the possibility: Comcast to take 51 percent stake in NBCU by contributing content assets such as the E channel, the Golf Channel and its regional sports networks and the contribution of as much as $7 billion in cash to the new company. GE would also contribute $12 billion in debt to the spun-off entity, reports B&C.
Also, NBCU CEO Jeff Zucker send out an e-mail to employees to calm them down about rumors. “[Vivendi] have not yet made us aware of any final decisions about their future with us; should they choose to exit, there are a number of possible things that could happen.”
Meanwhile, analysts are weighing in on the deal talks: Craig Moffett, Bernstein Research: “We believe that GE’s first preference is for a third party — either strategic or private equity — to take out Vivendi’s 20 percent ownership stake should they exercise their exit option…In the event Comcast were to acquire their 20 percent interest it would include all of the regulatory burdens but none of the benefits of control.”
Staci adds: No one I’ve talked to about this sees Comcast, which tops the NFL on the control-freak pyramid, making a deal without control or a very clear path to it. They also don’t see Comcast trying anything hostile to make it happen, after the costly Disney (NYSE: DIS) debacle. One industry insider very familiar with the players told me he doesn’t expect a deal to come out of the discussions. Others involved in media M&A are doubtful as well. It will have to be a very creative deal to impress investors, who are leery of major spending by Comcast (NSDQ: CMCSA).

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