vhsiv
06-25-2003, 07:44 PM
NBC seeks Vivendi alliance, insiders say
by Geraldine Fabrikant and Bill Carter NYT
Thursday, June 26, 2003
http://www.iht.com/articles/100852.html
NBC intends to join the bidding for the nonmusic entertainment assets of Vivendi Universal SA, but wants to form an alliance with Vivendi, not buy it, people briefed on NBC's plans say.
NBC, which would need the approval of its corporate parent, General Electric Co., to make a formal offer, wants to combine its broadcast and cable operations with Vivendi Universal's entertainment assets in an arrangement that would give it majority control, several people close to NBC's planning said Tuesday.
NBC is unwilling to put money in the deal, they said, but the joint venture would assume $2 billion of debt in the entertainment unit, Vivendi Universal Entertainment.
The people briefed on NBC's plan said they did not know if GE would be willing to put its stock in such a venture.
Vivendi Universal is said to be eager to have NBC bid, in part to pressure Liberty Media Corp., which is considered the most aggressive company pursuing Vivendi's media businesses.
A Vivendi spokeswoman declined to comment, as did NBC.
Liberty Media, controlled by John Malone, has $5 billion in cash it could put behind an offer, and it would be the most attractive bidder if General Electric and NBC cannot develop a compelling offer, an executive close to the talks said. But GE would bring prestige that Vivendi might value as highly, this person said.
Vivendi Universal Entertainment includes the Universal movie and television studios, cable channels and a theme park business. NBC owns the NBC broadcast network and several cable channels.
Vivendi's Universal Music Group, which is on the market separately, is not of interest to NBC, the people close to NBC's decision-making said.
But Liberty Media has submitted two bids - one for all the entertainment assets and another for Vivendi Universal Entertainment alone, a banker involved in the deal said. Liberty Media executives declined to comment.
Other bidders include a consortium led by Edgar Bronfman Jr., whose family sold the Universal entertainment assets to Vivendi in 2000, and one led by the entrepreneur Marvin Davis.
by Geraldine Fabrikant and Bill Carter NYT
Thursday, June 26, 2003
http://www.iht.com/articles/100852.html
NBC intends to join the bidding for the nonmusic entertainment assets of Vivendi Universal SA, but wants to form an alliance with Vivendi, not buy it, people briefed on NBC's plans say.
NBC, which would need the approval of its corporate parent, General Electric Co., to make a formal offer, wants to combine its broadcast and cable operations with Vivendi Universal's entertainment assets in an arrangement that would give it majority control, several people close to NBC's planning said Tuesday.
NBC is unwilling to put money in the deal, they said, but the joint venture would assume $2 billion of debt in the entertainment unit, Vivendi Universal Entertainment.
The people briefed on NBC's plan said they did not know if GE would be willing to put its stock in such a venture.
Vivendi Universal is said to be eager to have NBC bid, in part to pressure Liberty Media Corp., which is considered the most aggressive company pursuing Vivendi's media businesses.
A Vivendi spokeswoman declined to comment, as did NBC.
Liberty Media, controlled by John Malone, has $5 billion in cash it could put behind an offer, and it would be the most attractive bidder if General Electric and NBC cannot develop a compelling offer, an executive close to the talks said. But GE would bring prestige that Vivendi might value as highly, this person said.
Vivendi Universal Entertainment includes the Universal movie and television studios, cable channels and a theme park business. NBC owns the NBC broadcast network and several cable channels.
Vivendi's Universal Music Group, which is on the market separately, is not of interest to NBC, the people close to NBC's decision-making said.
But Liberty Media has submitted two bids - one for all the entertainment assets and another for Vivendi Universal Entertainment alone, a banker involved in the deal said. Liberty Media executives declined to comment.
Other bidders include a consortium led by Edgar Bronfman Jr., whose family sold the Universal entertainment assets to Vivendi in 2000, and one led by the entrepreneur Marvin Davis.