Finance news

General Electric Co. is holding talks to sell 51% of NBC Universal to Comcast Corp., which would pay up to $7 billion in cash and contribute some programming assets to the new, jointly owned company, according to a person familiar with the matter.

GE (GE, Fortune 500), which owns 80% of NBC Universal, is considering a host of proposals for NBC Universal as partner Vivendi SA explores whether to sell its 20% stake.

At the moment, however, a deal with Comcast (CMCSA, Fortune 500) appears to be the most likely outcome, though the source said discussions are still in the early stages and could fall apart.

Under the plan, GE would buy Vivendi’s stake, and put the borrowings that fund that deal on NBC Universal’s balance sheet. Other debt would also be added to the balance sheet of what would essentially be a new, stand-alone company.

Comcast would take a 51% stake in that company by contributing a combination of about $6-$7 billion in cash and some of its own programming assets, the source said.

Over time, Comcast could increase its ownership stake, most likely funding it from cash generated by the new NBC Universal, according to CNBC, which first reported the news.

The structure would allow Comcast to acquire the cable assets it has long coveted, without taking on any new debt or issuing equity.

Shares of Comcast dropped 6 payday loans.6% on Nasdaq. GE shares were down 2.2% the New York Stock Exchange at mid-afternoon.

Other sources said GE has also studied several additional options should Vivendi drop its stake in NBC Universal, which owns the NBC broadcast network plus theme parks, a movie studio and cable channels like Bravo, USA and CNBC.

Among those options, GE could find another buyer for NBC Universal or look to sell part of the media company through an initial public offering.

Vivendi, NBC Universal, Comcast and GE have declined to comment on any talks.

Time Warner Co. (TWX, Fortune 500) ,, the parent company of CNNMoney.com, is another company often linked to interest in NBC Universal. But another source said the company would rather avoid the burden of acquiring the poorly performing NBC broadcast TV network, even if it is attracted to the possibility of adding more cable channels to a current lineup that includes TBS, CNN, and HBO, among others.

Vivendi has the right to exercise its sell option in NBC Universal each fall until 2016, but is thought likely to do so this year to fund businesses that it finds more essential. 

Source