GE is in talks to sell off its NBC Universal stake to Comcast, CNBC reporter David Faber has just confirmed.
Though he says it’s not a done deal, Faber has many of the details:
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 familair with the negotiations.
…Under the plan being discussed between GE and Comcast, GE would buy Vivendi’s 20 per cent stake in NBC Universal 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 value roughly $13 billion to garner a 51% stake.