GE (GE), Comcast (CMCSA) Agree on Value for NBC Universal

November 9, 2009 8:15 AM EST

A clearer road has been paved for the potential joining of General Electric (NYSE: GE) and Comcast (Nasdaq: CMCSA) with the recent valuation of NBC Universal. The acquisition would give Comcast control of the GE movie and television company, according to those familiar with the venture.

The two sides have been negotiating for weeks and have agreed to value NBC Universal at $30 billion. According to the terms of the deal, the amount of cash that Comcast would have to put up will be reduced when the deal closes.

According the people close to the matter, the two companies could finish deliberating and reach a final deal by the end of this week.

One roadblock does still remain that could hamper or even undo the potential deal between Comcast and GE. The French media and telecom company, Vivendi, has not made it apparent whether it has agreed to the potential deal. Vivendi owns a 20% stake in NBC Universal and has made it clear that it wants to sell its share in the company. Vivendi has not stated if it has agreed to the Comcast terms.

If the deal does eventually get done, the largest U.S. cable operator’s number of networks would be merged with NBC Universal’s television networks and local stations, along with its movie studio, creating an enormous media entity.

At the close of the deal Comcast would gain a 51% stake in the combined company, with GE initially controlling 49%. Vivendi would be bought out of its stake entirely. GE’s remaining stake in the combined company would be bought out over the course of the next seven years. According to those close to the deal, the two companies have also agreed on how to value the combined company over the next seven years.

In the pre-market session, shares of GE are up more than 2% to around $15.68, while shares of Comcast are currently up 0.3% to $14.64.

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