The epic saga: In which Vivendi gets out of the way
GE has finally got itself a new doorstop with Vivendi agreeing to sell out 20% in NBC Universal for $5.8 billion (MarketWatch story)
Now one only needs to wait for Comcast to get in and bid for NBC and then it will be up to regulators to allow the new largest media company in the US to be formed from the merger of NBC and Comcast. The regulators will unlikely approve the deal before the last quarter of 2010
With this deal, NBC can put behind the networks’ advanced revenue deals and other skullduggery that caught AOL Time WArner and NBC itself repeatedly on the wrong foot during the past 10 years.
Also turning over a new leaf is hedge fund Citadel, stepping into a large underwriting deal for Hi Tech AMD’s $5 billion bond issue..What can now happen easily is that a Citadel can easily create a competitive deal environment for such media players as Comcast or telcos as AT&T when Apple and Amazon lead the next decade of innovation of media & retail while governments strike at infrastructure gaps and JP Morgan cements itself on the other continent, Europe with the purchase of another 50% of Cazenove.
The CFPRA of Chris Dodd is of course also going to pay a key role but it is this redefinition of the marketspaces that can create sustenance for the Financial markets and leave behind dscussions of unpaid insurance and empty pockets, without giving Maurice Greenbergs the easy time we did in 2008. Of course, with the deed done, Buffet is having an easy time too..but then some will get away basis a good record :) and no one has ever beaten JP Morgan and Goldman Sachs and GE will do well to remember that. It’s definitely not theirs to buy CNN and Viacom next!!
Also see our early lead on GE and NBC here