Report: GE and Comcast in Due Diligence on NBC Universal Deal

A little over two weeks since rumors first surfaced that Vivendi might sell its stake in NBC Universal to Comcast, the deal is inching its way towards reality, according to the Wall Street Journal. If Comcast does get hold of Vivendi's 20 percent of General Electric's entertainment properties—including NBC, MSNBC, and Universal Pictures—the cable company could eventually own a majority stake.

The Journal's Sam Schechner and Jeffrey McCracken report, "Comcast and GE are in the midst of due diligence, say people familiar with the matter. If Vivendi and GE can hammer out a price, a deal on the Comcast-NBC Universal transaction could come next month, those people, and others familiar with the matter, say."

When the rumor of the deal first broke on Sharon Waxman's The Wrap, NBC Universal president and CEO Jeff Zucker told employees in an email, "It is an exciting time, and these are exciting possibilities."

Yesterday, Breakingview.com's Rob Cox and Aliza Rosenbaum offered a useful, concise history of General Electric's majority ownership of NBC Universal. GE released its third-quarter earnings on Friday and noted that the NBC Universal unit had 13 percent earnings growth, mostly through its cable properties like USA and Syfy.

The possibility of an IPO for NBC was also floated. GE chairman and CEO Jeff Immelt told investors on the call, "I don’t have a specific pronouncement or specific need for cash."