M&A

10 November, 2009

Zucker to head new NBCU-Comcast venture -- sources

NEW YORK, Nov 10 (Reuters) - Comcast Corp (CMCSA.O) and General Electric Co (GE.N) have agreed to make NBC Universal CEO Jeff Zucker the head of their proposed joint venture, but the structure of a new board is still being negotiated, sources familiar with the matter said.

The two sides have been in talks to reach a deal that would give Comcast a 51 percent stake in the NBC Universal venture, which would also house the cable networks now belonging to Comcast. They recently agreed to value NBC Universal at about $30 billion, sources previously told Reuters.

Under the terms being discussed, Zucker will lead the new entity, with no clauses for him to leave after a specific period, the sources said on Tuesday. They spoke on condition of anonymity because the details have not been made public.

As part of the proposal, NBC Universal would become a joint venture, 51 percent owned by Comcast and 49 percent by GE. Comcast would contribute around $4 billion to $6 billion in cash, as well as its collection of cable networks to pay for its stake. (Reporting by Jui Chakravorty Das; editing by Andre Grenon)

Source: http://www.reuters.com