- UBS Profit Misses Forecasts; Bank Warns on Revenue
- China Growth Could Halve If Europe Crisis Worsens: IMF
- Traders Watch Bernanke for Any Shift After Jobs Report
- Japan Chooses Stealth Intervention to Curb Yen Rise
- Super Bowl, Madonna Set New TV Audience Records
- Why Oil Prices Aren't Rising Despite Sanctions on Iran
- Greece Is a 'Sideshow' for Investors: Fund Manager
- Investors Wary of Stocks Are Flocking to Junk Bonds
- After US Oil Snub, Canada Focuses on China
MOST SHARED
- Stock Gains Turn Hedge Fund Losers Into Winners
- RBA Unexpectedly Holds Rates, Leaves Door Open to Cut
- Saudi Arabia Will Not Let Oil Go Above $100: Prince
- After US Oil Snub, Canada Focuses on China
- Estee Lauder Forecast Lower Profit on Ad Spending
- Rein: When Chinese Tourists Are Not Welcome
- Super Bowl, Madonna Set New TV Audience Records
- Greece Is a ‘Sideshow’ for Global Investors: Fund Manager
MOST POPULAR
HOT ON FACEBOOK
GE Is in Talks to Spin Off NBC, Give Comcast 51% of New Unit
Text Size 
CNBC Anchor and Reporter
General Electric [GE
Loading...
()
] and Comcast [CMCSA
Loading...
()
] are in talks about a deal in which GE would spin off its NBC Universal unit into a new company that would be merged with the content assets of Comcast, according to people familiar with the negotiations.
 |
Bethany L King NBC |
The deal under consideration would allow Comcast to take 51% economic control of NBC Universal through its contributions of content assets such as the "E" channel, the Golf Channel and a group of regional sports networks and the contribution of as much as $7 billion in cash to the new company.
The prospective deal is complex and is far from a certainty. Under the scenario being contemplated, GE would spin off NBC Universal, along with a significant amount of debt, into a new company.
Comcast would merge content assets that it values at as much as $6 billion, along with cash, so that it would take a 51% ownership stake.
GE would control 49% and—as part of the spin off of NBC Universal—would be able to contribute as much as $12 billion in debt to the spun off entity, say people familiar with the negotiations.
Bankers on both sides of this deal say nothing is imminent and—given the high degree of difficulty in making this work—they are far from certain a deal will get done.
Still, the willingness of GE to consider shedding NBC Universal, which includes CNBC and CNBC.com, is of great significance. GE and Comcast officials declined comment.
Under the scenario being contemplated, Comcast would not issue equity or endanger its investment-grade credit rating.
These talks have been prompted by the prospect that Vivendi of France will soon tell GE it plans to exit its 20% stake in NBC Universal.
Under the plan being discussed between GE and Comcast, GE would buy Vivendi's stake and put the borrowings that fund that purchase on NBC Universal's balance sheet. It would then add further debt to NBC Universal and spin it off.
Assuming the company was valued at $35 billion, and subtracting $12 billion in debt, Comcast would need to contribute equity valued roughly at $13 billion to garner a 51% stake.
Over time, Comcast would likely increase its ownership stake in the new company and could fund those purchases through the cash flow it receives from the company itself. Comcast's CEO Brian Roberts has long coveted control.
- What happens at work when you can’t focus, and can’t do anything? Do you throw in the towel?
- BHP's CEO said he would buy investors a beer if he offloaded its nickel operations. One trader says it's time to pay up.
- The year of the dragon, a zodiac sign associated with wealth and power, is expected to lead to a baby boom in China.
- The epicenter of the oil rush is Williston, ND. Brian Shactman is there for a look at a town like no other.
- Which Super Bowl ad run by automakers is generating the greatest buzz? Phil LeBeau has some answers.
- We're so connected during the day it becomes difficult to disconnect at night. Here’s one way to get sleep.
Data is a real-time snapshot *Data is delayed at least 15 minutes
