Television

Battle over VUE assets ends in NBC's favour

MUMBAI: The protracted three-month old battle between various media firms over the assets of Vivendi Universal Entertainment has come to a close. As expected, NBC has walked away with the spoils.

At the time of filing, the two parties were in a meeting to ink a letter of agreement for a deal which will reportedly bring in $3.8 billion in cash to the cash-strapped Vivendi and an additional $1.2 billion in assumed debt. Reuters has valued the deal for Vivendi at approximately $13.6 billion.

The new entity is to be called NBC Universal, making it the third largest media company in the world after Walt Disney Co. and Viacom in that order. Rupert Murdoch's News Corp. Ltd. will now come in at Number 4.

Vivendi will merge assets including Universal film studios and the five theme parks, as well as the USA and Sci-Fi TV networks - with NBC.

All this of course indicates that Vivendi is keen on staying in the media business for a while longer. Earlier, there was talk that it would restrict itself to just the music segment. The broadcaster's parent General Electric will have a 80 per cent stake in the company. The troubled French media group will have the minority 20 per cent stake. Since Vivendi has reportedly valued its 20 per cent stake in the future NBC Universal group at $9 billion, the total value of the company therefore stands at $ 45 billion.

The new company is expected to generate $13 billion in annual revenues and $3 billion in operating cash flow.

As reported earlier by iIndiantelevision.com, the deal will enable NBC to look beyond just the other broadcast networks ABC, CBS, Fox and take on their owners Disney, Viacom and Rupert Murdoch's News Corporation. Analysts have noted that the deal will allow NBC access to more programming without difficult negotiations with its competitors. Reports indicate that the deal makes sense in the US where the new regulatory environment no longer separates production and broadcasting. The proposed merger, which is expected to be completed by end-September is also expected to pass through European Union regulatory scrutiny without a hitch.

It is however doubtful as to whether NBC sees a great deal of value in the theme park arena. In all probability it will operate them until an attractive exit is found.

While NBC has been in the forefront for a while now the former owner of Universal Edgar Bronfman Jr who sold out to Vivendi three years ago and who is on Vivendi's board of directors had still held out hopes of a deal going in his favour. He has however finally resigned to losing out. MGM was one of the first parties to pull out of the race for the VUE assets. The other serious suitiors at one time or another included Liberty Media, Viacom and cable company Comcast.

But this does not mean that Bronfman has totally de-linked from making a play for Vivendi assets. Still up for grabs is Universal's music assets Universal Music Group which is not part of the current deal. It is seen as a straight play with none of the complexities that this deal came with and will be a more straightforward pitch for Bronfman.

Also Read:

NBC expected to clinch deal for VUE assets

NBC emerges as front runner in Vivendi US showbiz deal

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/12/10/The-Bourne-Legacy.jpg?itok=bBiJiS4E
Third Kind, Bourne To Kill, Species III & Predestination to be shown on Movies Now 2

MUMBAI: We are arriving at the end of 2016 and to celebrate the year that has gone by, Movies Now 2 is set to sway its viewers with some swag and style. The channel has lined up a series of Hollywood movies filled with action, sci-fi and fantasy. Audience can witness some of the most amazing unique...

Television TV Channels English Entertainment
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/12/10/Ravi%20Shankar%20Prasad.jpg?itok=Ylk_C8Bk
Cashless villages 'Mumkin Hai' with new channel & Rs 5-cr campaign

MUMBAI: The government has launched 'DigiShala', a Doordarshan free DTH channel, to promote cashless transactions in India -- the first step in online payment education through the electronic media. The channel will be brought through GSAT15 (DD Direct DTH), 93.5 degree East, Receive frequency:...

Television TV Channels Terrestrial
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/12/10/Ravi-Ankam.jpg?itok=7xX9r-rW
V6 challenges suspension; BARC to place facts before court

MUMBAI: V6 News, from the stable of the Telugu channel popular across Telangana and Andhra Pradesh, also wants to challenge Broadcast Audience Research Council India (BARC India) after the latter suspended its ratings review for some weeks along with other two channels on 24 November, 2016.

Television TV Channels News Broadcasting
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/12/10/Awaaz-Se-Bada-Na-Koi.jpg?itok=mpG5iXSc
&TV's innovative affair with The Voice India S2

MUMBAI: Have you ever seen a promo of a new show on television which is actually a video but not a video. Confused? ZEEL’s year-old Hindi general entertainment channel &TV has come up with the unique campaign ‘Awaaz Se Bada Na Koi’ to promote the second season of 'The Voice.'

Television TV Channels GECs
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/12/10/KHATMAL-E-ISHQ.jpg?itok=ZbKRdoJt
SAB TV revenue grew nine-fold under Sony umbrella

NEW DELHI: Sab TV, which claims to be the country’s sole channel beaming only comedy series, claims to have grown its revenue nine times since it came under the Sony fold.

Television TV Channels GECs
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/12/10/Prashant-Chothani.jpg?itok=z79wKqCX
Travelxp to launch new Tamil channel; 4K feed before Feb

MUMBAI: Giving competition to Discovery Channel, Prashant Chothani-promoted travel and lifestyle channel, travelxp, is all set to take southern India by storm with the launch of its new channel in Tamil. The channel's soft launch is scheduled for 13 December. It's availability on various...

Television TV Channels Regional
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/12/09/farhan-arjit.jpg?itok=1WwGNibs
Flo Rida, Arijit Singh, Farhan to enthrall at Aamby Valley City

MUMBAI: Absolut Enchanted Valley Carnival (EVC), India’s largest multi genre, camping and music festival is back with its 4th Edition at Aamby Valley City, Lonavala between 17 & 18 December. The carnival like its previous editions will be a mix of international and home-grown artistes. This...

Television TV Channels Music and Youth
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/12/09/Haunting.jpg?itok=04TOpxwK
NBC-Universal buys 'paranormal' series from Bomanbridge

MUMBAI/ SINGAPORE: Bomanbridge Media, a Singapore-based content distribution and production agency, announced a series of paranormal series programme sales to NBC-Universal’s Syfy and Celestial.

Television Production House Fiction
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/12/09/Dayanidhi-Maran-800x800.jpg?itok=89LDOdFX
Sun TV security clearance review sought; two channels' cancellation stayed

NEW DELHI: A review has been sought by the information and broadcasting ministry from the home ministry about security clearance to Sun TV Network Ltd in view of the amended guidelines of that ministry. Union minister M Venkaiah Naidu told the Parliament yesterday that no reply had been received so...

Television TV Channels Regional

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories