The flurry over a potential Comcast (s CMCSA) takeover of GE’s (s GE) 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.