Vivendi SA's board will weigh the sale of its 20 percent stake in NBC Universal tomorrow, a decision that could ultimately allow Comcast Corp. to buy the entire theme-park, film and television company, Bloomberg News reported today.
The remaining 80 percent stake is owned by GE, whose financial and manufacturing divisions were battered in the recession.
If the complex deal were consummated, Comcast would own 51 percent of the new private corporate entity, which would be valued at $35 billion, and GE would own 49 percent.
Philadelphia-based Comcast Corp., the nation's largest cable company with about 24 million subscribers, is in advanced talks to merge its cable networks with NBC Universal Inc., one of the nation's storied TV and movie studios.
NBC Universal released the Fast and Furious movies and Brokeback Mountain, among others; owns hit cable TV networks USA and Bravo; produces award-winning TV shows, such as The Office and 30 Rock; and operates amusement parks in Hollywood, Calif.; Orlando; and Osaka, Japan. Its 4,000-title library contains the classics The Deer Hunter and Schindler's List.
Each year, Vivendi is allowed to exercise an option to sell that stake, either in the public market or to GE.
The option opens up every November. Comments from Vivendi chief executive officer Jean-Bernard Levy that he plans eventually to sell the NBC Universal holding have helped fuel talk that Vivendi could sell the stake this year.
The option was part of a deal made in 2003 when Vivendi sold its theme parks and television assets in the United States to GE for cash and stock.
GE gained 5 cents to $16.38 early this afternoon in New York Stock Exchange trading. Comcast was up 18 cents, to $15.46, in Nasdaq trading.
Vivendi's American depositary receipts were priced at $30, down 35 cents, early this afternoon in over-the-counter trading.
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