GE must buy back Vivendi’s 20% share of NBC Universal in order for Comcast to takeover the media conglomerate. And though it looked as though Vivendi was posed to make a deal with GE, recent reports confirm that the two companies are still “$500 million-$1 billion apart in their valuation of NBC U. And GE needs to buy back Vivendi’s stake to proceed with its plan to sell 51% of NBC U to Comcast, which plans to merge its cable channels with NBC U’s assets.” [Variety]
Comcast and GE have agreed in what NBC Universal is worth ($28 billion-$30 billion), making Vivendi’s percentage worth $5.4 billion-$6 billion. Vivendi’s holding out for $6.5 billion to $7 billion.
Everyone is looking for the safest way out (and, in Comcast’s situation, in). Comcast will most likely have a clause in their takeover that requires them to put up less cash if NBC Universal’s financial worth declines in between the time of the agreement and the takeover.
It seems like Vivendi is doing the same thing, only up front as they are selling off all of their stake. That being said, asking for $1 billion over the projected worth (around 1/6 above it as a matter of fact).
What do you think of this news? Is Vivendi asking for too much?