A-HA - NBC-COMCAST MERGER DEVILS IN DETAILS

NBC-COMCAST MERGER DEVILS IN DETAILS

The proposed deal between General Electric and Comcast Corp that would see the two companies become joint owners of NBC Universal is becoming more complicated with each new published revelation of the negotiations between the two companies. Reuters reported today (Tuesday) that GE could exit the joint venture as soon as three-and-a-half years after the deal is signed. Citing two sources familiar with the talks, the wire service said that GE has negotiated a redemption option giving it the right to sell its 49 percent of the new NBC Universal to Comcast for cash at the three-and-a-half year mark and at a seven-year mark -- provided that the the new company is able to generate enough cash over that period to pay down its $9-billion debt load and buy GE's stake. CNBC, a unit of NBC Universal, cited sources on Monday as saying that News Corp and Liberty Media are also interested in NBC Universal. Meanwhile, in an interview with Business Week , GE chief Jeff Immelt has once again given his complete backing to NBC Universal CEO Jeff Zucker, saying that he would like him to continue running the company even if GE sells off majority control of the business. "I think he's as good as anyone running a media company today," Immelt told the magazine. On the other hand, TheWrap.com, which first reported on the GE-Comcast negotiations, quoted an unnamed top executive at NBC Universal as saying of Zucker, "Here's the guy who destroyed the Tonight show ... destroyed Conan O'Brien. He's ruined the primetime line-up. Southland is one of the best shows on TV, and it's gone. He's destroyed NBC."

13/10/2009