U.S. television network NBC on Saturday told Vivendi that any deal to merge the two media giants would bring Vivendi some much needed cash to address its huge debt burden, a person familiar with the situation said.
In a letter sent to Vivendi EAUG.PA executives on Saturday, NBC proposed a way for Vivendi to receive cash in the deal against a future commitment by NBC parent company General Electric GE.N to buy part of Vivendi's stake in the new entity, the person said on Sunday.
The source declined to elaborate on the proposal. A Vivendi spokeswoman declined to comment and NBC officials were not immediately available.
On Tuesday, Vivendi directors will review offers and could select the winner of a prolonged auction for its U.S. entertainment assets, other sources have said.
Vivendi is eager to get some cash out of the sale of Vivendi Universal Entertainment, as the group of U.S. entertainment assets are known, to meet its targets of cutting the huge debts that nearly crippled the company last year.
GE is proposing to merge the assets of the two companies to form a media conglomerate that would include its broadcast network NBC, its Spanish-language network Telemundo and its cable channels -- CNBC, MSNBC and Bravo -- with VUE's film studio, movie library, cable channels and theme parks.
After talks on Friday, GE proposed in Saturday's letter that Vivendi emerge with a 20 to 25 percent stake in the new entity, the source said. It would allow Vivendi to sell pieces of its stake over time, the source added.
Vivendi Vice Chairman Edgar Bronfman Jr. has submitted an offer, as has Liberty Media Corp. L.N , the media company controlled by cable pioneer John Malone.
In a letter sent to Vivendi EAUG.PA executives on Saturday, NBC proposed a way for Vivendi to receive cash in the deal against a future commitment by NBC parent company General Electric GE.N to buy part of Vivendi's stake in the new entity, the person said on Sunday.
The source declined to elaborate on the proposal. A Vivendi spokeswoman declined to comment and NBC officials were not immediately available.
On Tuesday, Vivendi directors will review offers and could select the winner of a prolonged auction for its U.S. entertainment assets, other sources have said.
Vivendi is eager to get some cash out of the sale of Vivendi Universal Entertainment, as the group of U.S. entertainment assets are known, to meet its targets of cutting the huge debts that nearly crippled the company last year.
GE is proposing to merge the assets of the two companies to form a media conglomerate that would include its broadcast network NBC, its Spanish-language network Telemundo and its cable channels -- CNBC, MSNBC and Bravo -- with VUE's film studio, movie library, cable channels and theme parks.
After talks on Friday, GE proposed in Saturday's letter that Vivendi emerge with a 20 to 25 percent stake in the new entity, the source said. It would allow Vivendi to sell pieces of its stake over time, the source added.
Vivendi Vice Chairman Edgar Bronfman Jr. has submitted an offer, as has Liberty Media Corp. L.N , the media company controlled by cable pioneer John Malone.
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