Source: Comcast Plans To Complete Acquisition OF NBC This Week

The New York Times is reporting that Comcast Corp and General Electric Co are closer to a deal to give Comcast a 51 percent stake in NBC Universal and that a formal announcement may be made in the coming week. Mediaite has learned from an industry source familiar with the negotiations that Comcast will in fact be formally announcing its acquisition of NBC Universal this week.

GE, which currently owns 80 percent of NBC Universal, would keep the other 49 percent and contribute about $12 billion in debt to the new entity, according to the paper. The paper added that GE is likely to eventually sell its ownership interest in NBC Universal over several years.

Michael J. de la Merced and Andrew Ross Sorkin reported for the NY Times:

General Electric and the cable giant Comcast have moved closer to a deal giving control of NBC Universal to Comcast, and a formal announcement could be made sometime next week, people briefed on the talks said Sunday.

After a series of meetings last week, the two companies reached a tentative agreement on Friday over the main points of a deal, these people said. Comcast would own about 51 percent of NBC Universal, contributing several billions of dollars in cash and its own stable of cable networks to the new venture.

G.E., which currently owns 80 percent of the entertainment company, would retain the other 49 percent and would contribute about $12 billion in debt to the new entity, though it is expected eventually to sell its ownership interest over several years.

Talks with Vivendi SA, which has to agree to sell its 20 percent stake in NBC Universal, for the deal to happen, are centered around reaching an acceptable valuation of the entertainment company, the people told the paper.