Comcast mulls NBC Universal stake

Comcast, the largest cable network in the US, is reportedly in discussions with General Electric (GE) over a stake in NBC Universal, owner of the NBC television network.  Analysts have valued NBC Universal (NBCU) at between $21 billion and $35 billion, including an estimated $5.1 billion in debt. The stake under discussion is around 50 percent, though the deal would partly depend on French media conglomerate Vivendi relinquishing its 20 percent holding.  Jean-Bernard Levy, VivendiÔÇÖs CEO, has previously described NBCU as a ÔÇ£non-core assetÔÇØ, as it is not performing as well as the French companyÔÇÖs majority-owned operationsÔÇöin part due to a decline in advertising revenue. Paris-based Vivendi retained a 20 per cent stake in NBCU after selling Universal in 2004, and has an annual window from mid-November to early-December to notify GE of any intention to sell its stake. It is unknown whether GE, which has the option of first refusal, would have the cash resources required to buy the $4 billion to $5 billion stake.  Fairfield, Connecticut-based GE controls 80 percent of NBCU, which owns a film studio, theme parks and cable channels, alongside the NBC television network.  The unit has long been considered to be outside of GEÔÇÖs core businesses, which include the manufacture of jet engines, locomotives and medical imaging machines, as well as power generation equipment that produces around one-third of the worldÔÇÖs electricity. GE bought NBC in 1985 for $6.5 billion.  Philadelphia-based Comcast, which serves around a quarter of US cable customers and has 25 million subscribers, has previously cited NBCUÔÇÖs cable content, which includes channels such as USA, CNBC, MSNBC and Bravo, as a target for acquisition.  ComcastÔÇÖs current cable channels include E! Entertainment, Golf Channel and Style Network, as well as 10 regional sports networks. In the first half of this year, NBCU had revenues of $7.5 billionÔÇöless than 10 percent of GEÔÇÖs total revenue. Five years ago, Comcast made an attempt to buy Walt Disney Co for $54 billion, an offer which was rejected. * ┬á┬á┬á┬á┬á┬á┬á*┬á┬á┬á┬á┬á┬á┬á *