Let’s get this straight: NBC Universal is now formally in play. But that struggling Hollywood blog is spewing bullshit: there is nowhere even close to a Comcast deal for it. There are “5 or 6″ interested parties, including Comcast, other media giants, and a consortium of private equity companies, who all are at the preliminary stages of kicking the tires on GE’s NBC Universal. “It is very early. They just started putting the deal books out on the street for NBC Universal,” one of my sources told me this morning about GE’s plans to spin-off the TV/movie studio subsidiary if Vivendi as expected exercises its put. Most importantly, insiders say GE is now willing to cede a controlling 51% stake in NBCU to any potential buyer for the right deal. That makes sense, because no media giant or other company wants just a passive investment in NBCU. That’s why Vivendi may shed it’s 20%.
Though GE has not yet commented substantively, and probably won’t, the company often uses its own CNBC reporters to impart news about GE and its subsidiaries. That is clearly what is happening right now. CNBC’s reliable reporter David Faber just updated his own reporting. (UPDATE: Comcast emailed his report to reporters 30 minutes later.) Faber said one scenario is that GE would buy Vivendi’s 20% and spin off NBCU into a new private company which could merge with the Comcast’s content assets valued at $6 billion, including E! Entertainment channel, the Golf channel, and a group of regional sports networks. Comcast also would contribute $7 billion in cash in exchange for 51% economic control. Faber’s scenario has GE spinning a significant amount of debt, $12 billion, into the new company which GE would take 49% control. But even Faber admitted that “nothing is imminent”, and any deal between Comcast and NBC is “far from certain”. Especially because Comcast stock took a hit today on the news from nervous investors. But Faber stressed that under the scenario, Comcast would not issue equity or endanger its investment grade credit rating.
Editor-in-Chief Nikki Finke - tip her here.


I’d be willing to buy it for a $1 if GE assumes operating expenses.
There’s no future in broadcast — it’s all cable, the internet and blogs now, so NBC has zero value going forward (I’d be overpaying).
@jd, clearly you haven’t noticed the flurry of ads for NBC.com on every one of their shows in the last 18 months, not to mention the development of a pure digital studio (likely the first of it’s kind) that produces content solely for the internet. If the interest is in digital, NBC and Disney have been the most advanced in that area with multiple technical Emmy’s to prove it, though all the major nets have their online business units.
Any anyway it’s not ALL internet and blogs – unless you want to see 1000s of jobs lost to people with no talent, skill, respect or knowledge of entertainment. The internet isn’t some new business model that wipes away the traditional entertainment industry. It’s new media distribution with the same business model as television (advertiser supported with a paid content option).
Broadcast isn’t dying, it’s evolving… television isn’t being replaced, it’s being augmented. If you’d rather be getting all your news or entertainment from YouTube, then you probably aren’t watching shows like “Lost”, “Mad Men”, “Rescue Me”, etc., and you probably don’t have any money to buy anything advertisers are selling you anyway.
As for this deal, what would interest me the most is to see what happens to Hulu, as it directly competes with the cable companies.
Ideally, they’d integrate it, and Hulu could adapt to a paid model for “watch anywhere” capability and/or integrate with existing cable on-demand services. Cable companies like Comcast would still have a hard time swallowing a revenue sharing deal, and I’m not sure the studios would keep their content on the network without one, so it’ll be interesting to see how it plays out.
Much better explaination than the Zucker memo this morning. He needs to be more honest with his employees now that his network is in play.
Maybe if Comcast does buy NBC-U they can bring some of the excitement of the Golf Channel to NBC.
Well chairman Immelt was asked about the talks at a press conference in India. Both Jay and Conan joked about it; I wonder if the left wing commentors at MSNBC are worried about the Comcast deal. Becouse thier network is under the NBCU umbrella. I bet SYFY,USA Networks,Spike has been beating out MSNBC too.
Have Comcast wrestled around with NBC Universal long enough?