More NBComcast Reports: Spin-offs and Control

The flurry over a potential Comcast takeover of GE’s NBC Universal is picking up steam with more details. No official announcement has been made, but here’s what’s being reported so far:

From CNBC, which was the first to unearth the most recent details:

General Electricand Comcast are in talks about a deal in which GE would spin off its NBC Universal unit into a new company that would be merged with the content assets of Comcast, according to people familiar with the negotiations.

The deal under consideration would allow Comcast to take 51% economic control of NBC Universal through its contributions of content assets such as the “E” channel, the Golf Channel and a group of regional sports networks and the contribution of as much as $7 billion in cash to the new company.

From Broadcasting & Cable:

Comcast’s only cash outlay would be in the $4 billion to $6 billion range, according to one person in the midst of talks. CNBC had reported that Comcast would kick-in as much as $7 billion. That point appears to be one of many still under negotiation. One executive said General Electric would also contribute $12 billion in debt to the spun-off entity.

The LA Times got ahold of an internal memo NBCU CEO Jeff Zucker sent out to calm undoubtedly concerned employees:

Vivendi has been a superb owner of NBC Universal, along with GE, for more than five years. They 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.


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