GE to decide on NBC after Olympics

GE TO DECIDE ON NBC AFTER OLYMPICS
[SOURCE: Financial Times, AUTHOR: Francesco Guerrera, Joshua Chaffin and Aline Van Duyn]
The fate of NBC Universal, General Electric’s entertainment unit, will be decided only after the Beijing Olympics, with executives at the US conglomerate ruling out a sale before August’s showcase event. NBC, valued at about $40 billion, has been the subject of repeated sale rumors because of its lagging performance and the awkward fit with the rest of GE’s industrial and financial businesses. The issue is likely to resurface on Friday, when GE reports third-quarter earnings that should show signs of improvement at NBC. People close to the situation say that Jeffrey Immelt, GE’s chairman and chief executive, will not consider the future of GE’s 80 per cent stake in NBC ­ which had sales of $16.2bn and profits of $2.9bn last year ­ before the Olympics. The other shareholder, the French media group Vivendi, is not seen as a potential buyer or a long-term owner of the shares. Under a deal with GE, Vivendi has the right to ask the US company to buy back its 20 per cent stake or force a listing of NBC.
http://www.ft.com/cms/s/0/ebdbbdfe-776c-11dc-9de8-0000779fd2ac.html
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