Comcast, GE agree on valuation for NBC

NEW YORK — Comcast and General Electric (GE) have agreed to value GE’s NBC Universal at about 30bn as they discuss creating a joint venture to own the entertainment division, it emerged at the weekend.

Vivendi, which owns 20% of NBC Universal, is not yet part of the agreement, according to a source, who sought anonymity because the negotiations are not public.

GE and Comcast, the largest US cable company, were in talks to create a company that would include NBC Universal, sources said last month. Comcast would own more than 50% of the venture, which would have assets from both companies, they said.

Any deal is dependent on Vivendi selling its stake. It can notify GE during an annual window between Sunday and December 10. Simon Gillham, vice-president of communications at Vivendi, said it was in “no hurry” to exercise the option.

Comcast would contribute 4bn- 6bn plus cable channels E! Entertainment, Golf Channel and Versus, according a source. GE would contribute its 80% stake in NBC Universal, one person said.

The unit operates theme parks, a movie studio, broadcast networks and cable channels including Bravo, USA and CNBC.

GE would retreat from a business some analysts have urged CEO Jeffrey Immelt to divest because it did not fit with the parent’s industrial, finance and healthcare focus.