GE and Vivendi agree $5.8 billion for NBC stake

General Electric (GE) and Vivendi have agreed on a $5.8 billion valuation of the French companyÔÇÖs 20 per cent stake in television and movie company NBC Universal (NBCU).  The valuation clears the way for Fairfield, Connecticut-based GE to sell control of NBCU to Philadelphia-based cable giant Comcast. GE must buy out Paris, France-based VivendiÔÇÖs interest before it can sell its controlling stake in NBCU.  GE is keen to sell its stake due to growing losses at New York-based NBCU; however, Comcast, the biggest cable operator in the US, is keen to buy in order to control more of the television programs and movies it offers through its cable systems.  Under the terms of a joint venture with GE, Comcast would contribute its own cable channels, including Versus, the Golf Channel, and the E Entertainment channel, as well as around $5 billion in cash. A Comcast-GE joint venture would create one of the worldÔÇÖs largest media companies.  NBCU is currently one of HollywoodÔÇÖs biggest movie studio and television networks. Comcast would own 51 percent of the joint venture and GE would retain a 49 percent stake, with the possibility of reducing ownership over a period of several years.  The $5.8 billion settlement with GE will provide French Vivendi with much needed funds following its recent $4.2 billion takeover of 54 percent of GVT, a Brazilian broadband operator.  It is not yet clear whether GE will pay Vivendi the full $5.8 billion up front for its stake or seek to stagger the payments, since it is expected that the Comcast deal will take up to a year to clear regulatory hurdles.  With the value of VivendiÔÇÖs stake agreed, an announcement concerning the Comcast-GE joint venture is now expected as early as next week.  ComcastÔÇÖs deal to buy a 51 percent stake in NBCU for $30 billion was expected to be announced last week, but was delayed by GEÔÇÖs negotiations with Vivendi over the value of its stake.  If the Comcast deal doesn't close by the end of 2010 however, GE may have to buy out as much as $2 billion of Vivendi's stake in advance.  *┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á *