Comcast potentially buying NBC!!!

[red-beard]

From the WSJ

October 1, 2009, 1:08 AM ET.Comcast Linked to NBC Universal Stake.Sam Schechner

The intrigue over the fate of NBC Universal is intensifying, with cable giant Comcast Corp. considering a potential deal involving the media company.

NBC Universal minority-owner Vivendi SA, of France, is deciding whether to sell its 20% stake in the owner of television and movie assets. General Electric Co., with an 80% stake, is readying NBC Universal for a potential public offering of Vivendi’s stake, while casting around for less risky alternatives, according to people familiar with the matter.

Media executives are atwitter over what they think each side will do. The latest buzz, reported Wednesday by the Hollywood blog The Wrap, says Comcast is in talks to buy all of NBC Universal, a deal that would save GE the headaches of finding another minority owner and would create one of the world’s largest media companies.
Comcast has held the discussions with NBC Universal majority-owner GE, according to people familiar with the matter. It isn’t clear if those discussions will lead anywhere. Comcast said the report of its deal to buy NBC Universal is “inaccurate.”

Other rumors include everything from new buyers for all or part of Vivendi’s stake to a merger between NBC Universal’s movie studio and Time Warner Inc.’s Warner Bros. studio.

NBC Universal, which owns TV networks including NBC, USA and CNBC, along with local TV stations, Universal Studios and theme parks, is valued at between $21 billion and $23 billion, according to a recent report from research firm Sanford C. Bernstein. Another analysis, from J.P. Morgan, pegs NBC Universal’s value at $30 billion to $35 billion, valuing Vivendi’s investment as high as $7 billion.

Comcast and Time Warner have been frequently rumored acquirers, though there are obstacles in both cases.

Comcast is the largest cable operator by subscribers in the U.S. Its executives have said in recent weeks that they would be interested in TV networks it could add to its existing portfolio, which includes entertainment channel E! and sports channel Versus. Steve Burke, the company’s chief operating office, said at an investor conference in early September that “I don’t think that means doing a big $50 billion acquisition.”

People familiar with the thinking at GE and NBC Universal say it could be difficult to interest Comcast without offering a path to controlling NBC Universal. Both Time Warner and Comcast have been cool to owning a slice of a media company controlled by someone else. A purchase of all of NBC Universal would solve that problem.

The plotting over NBC Universal was set in motion by a feature of the 2004 deal in which Vivendi merged its Universal movie studio, cable networks and theme parks with G.E.’s NBC businesses. As part of the deal, Vivendi received cash and about 20% of NBC Universal, according to securities filings.

Vivendi also got the right to exit the joint venture, with an annual period to declare its intentions that runs from Nov. 15 to Dec. 10. Exercising that right would trigger a sale to public investors of Vivendi’s NBC Universal shares. G.E. can step in to buy the stake privately, the securities filings say. It has also said it could find another partner to buy the stake.

Vivendi has long indicated that it would eventually sell its NBC Universal holding. At an investor conference earlier this month, Jean-Bernard Levy, Vivendi’s chief executive, said that the company hadn’t decided whether to sell this year.

“We will ask ourselves, ‘Is it the right time or not?’ ” he said in a brief interview at the event. “We will look at a number of elements,” he added, but declined to elaborate.

Each year there is a guessing game about whether Vivendi finally will shed the stake. This time Vivendi has extra motivation, including a tepid stock price and a desire for cash to expand its telecom investments.

Vivendi spokesman Antoine Lefort declined to comment on whether the company would sell the stake this year.

G.E. is nevertheless preparing NBC Universal for a potential IPO, say people familiar with the matter. Executives at various divisions are involved in making preparations, these people say. G.E. is also exploring other possible options for Vivendi’s stake, including third-party buyers, people familiar with the matter say. One person familiar with the matter said the due diligence is more advanced than what GE would need for an IPO.

Wednesday evening, representatives for GE said the company doesn’t comment on rumors. Asked about the report of a Comcast deal, the representatives referred to Comcast’s statement.

A more exotic scenario envisions Time Warner buying Vivendi’s 20% and trading it back to NBC Universal for Universal Studios. That would leave G.E. with full ownership of NBC Universal’s television networks and TV studio. And it would leave Time Warner to combine Universal with Warner Bros. Many executives say Hollywood is in dire need of consolidation, as studios cut back on the number of movies they make and consumers buy fewer DVDs.

It’s unlikely Time Warner would want Universal, according to a person familiar with Time Warner’s thinking. Warner Bros. is already the biggest U.S. movie studio in terms of global gross box office revenue, and Time Warner recently merged two of its existing studios and cut the number of movies it produces to save money. Such a deal also would be difficult to pull off and could be complicated to value, leading one person familiar with the thinking at G.E. and NBC Universal to downplay the scenario as well.

Media executives are chattering about other possible deals. Analysts have suggested private-equity companies could buy a stake. Blackstone Group LP, for instance, might be a logical partner. The private-equity firm already jointly owns the Weather Channel and Universal Orlando theme park with NBC Universal. Other reports have suggested that cable magnate John Malone might buy the 20%, given his history of unusual transactions. It’s also possible the entire company could be broken into pieces and sold off. People familiar with the thinking of G.E. and NBC Universal have downplayed those options.

If it’s not possible to interest a private purchaser, that leaves a public offering as the default scenario. Unless, of course, G.E. decides it actually does want to pony up several billion dollars and buy the stake itself.

Lauren A.E. Schuker, Shira Ovide, Max Colchester, Dennis Berman and Paul Glader contributed to this article

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2nd article

Comcast-GE Talks Heighten Intrigue Over Fate of NBCU

• By SAM SCHECHNER

Cable giant Comcast Corp. is weighing a potential deal involving General Electric Co.'s NBC Universal, according to people familiar with the matter, adding intrigue to the fate of the movie-and-television company.
Comcast has held talks with GE, which owns 80% of NBC Universal, according to the people. It isn't clear if the discussions will lead anywhere.
The future of NBC Universal has been the subject of speculation for weeks, as French conglomerate Vivendi SA mulls possibilities for its 20% stake. Each year, Vivendi has an option to force a sale of its stake to GE or to public investors.
As Vivendi considers whether to trigger the sale of its investment, GE is readying NBC Universal for a potential public offering of Vivendi's stake, while casting around for less risky alternatives, according to people familiar with the matter.
Rumors have circulated about what each side will do, and about other suitors that could step in to buy all or parts of NBC Universal. Executives at various NBC Universal divisions are involved in making preparations for a public offering of Vivendi's stake, say people familiar with the matter. GE is exploring other possible options for Vivendi's stake, including third-party buyers, people with knowledge of the matter say. One person said the due diligence is more advanced than what GE would need for a public offering of the stake.
On Wednesday, the entertainment Web site The Wrap reported that Comcast was close to a deal to buy NBC Universal for $35 billion. Comcast denied the report, saying in a statement, "While we do not normally comment on M&A rumors, the report that Comcast has a deal to purchase NBC Universal is inaccurate."
The plotting over NBC Universal was set in motion by a feature of the 2004 deal in which Vivendi merged its Universal movie studio, cable networks and theme parks with GE's NBC businesses. As part of the deal, Vivendi received cash and about 20% of NBC Universal, according to securities filings.
Vivendi also got the right to exit the joint venture, with an annual period to declare its intentions that runs from Nov. 15 to Dec. 10. Exercising that right would trigger a sale to public investors of Vivendi's NBC Universal shares. GE can step in to buy the stake privately, the securities filings say. It has also said it could find another partner to buy the stake.
NBC Universal, which owns TV networks including NBC, USA and CNBC, along with local TV stations, Universal Studios and theme parks, is valued at between $21 billion and $23 billion, according to a recent report from research firm Sanford C. Bernstein. Another analysis, from J.P. Morgan, pegs its value at $30 billion to $35 billion, putting Vivendi's share at as much as $7 billion.
Comcast is the largest cable operator, by subscribers, in the U.S. Its executives have said in recent weeks that they would be interested in TV networks they could add to their existing portfolio, which includes entertainment channel E! and sports channel Versus. Steve Burke, the company's chief operating officer, said at an investor conference in early September that "I don't think that means doing a big $50 billion acquisition."
Comcast and Time Warner Inc. have been frequently rumored acquirers, though there are obstacles in both cases. Both Time Warner and Comcast have been cool to buying a slice of a media company controlled by someone else.
Vivendi has long indicated that it would eventually sell its NBC Universal holding. At an investor conference earlier this month, Jean-Bernard Levy, Vivendi's chief executive, said that the company hadn't decided whether to sell this year.
"We will ask ourselves, 'Is it the right time or not?' " he said in a brief interview at the event. "We will look at a number of elements," he added, but declined to elaborate.
Vivendi spokesman Antoine Lefort declined to comment on whether the company would sell the stake this year.
Wednesday evening, representatives of GE said the company doesn't comment on rumors. Asked about the report of a Comcast deal, they referred to omcast's statement.
—Lauren A.E. Schuker, Shira Ovide, Dennis Berman, Max Colchester and Paul Glader contributed to this article. Write to Sam Schechner at Sam.Schechner@wsj.com

[legion]

Comcast is a huge suck-magnet.

It attracts other things that suck and NBC sucks.

[red-beard]

I thought nature abhored a vacuum? Or is it just cats?