Comcast JV with NBC
September 5, 2009
Having dismissed reports it was discussing a takeover of NBC Universal, Comcast has allowed it is discussing the formation of a new joint venture company with General Electric owner of NBC.
The new company would be majority controlled by Comcast which would own a 51 per cent stake in NBC Universal versus General Electric's 49 per cent. Comcast's only cash outlay would be in the $4 billion to $6 billion range, according to reports. General Electric may also contribute $12 billion in debt to the spun-off entity. Comcast's assets include: E!, Style, Golf Channel and a group of regional sports networks.
As part of the deal Comcast would manage the new entity and merge its own cable assets into the venture. The deal is dependent on Vivendi giving up its 20% stake in NBC Universal which is majority owned by NBC Universal. The company is yet to decide on its plan for the stake.