Another view of Vivendi / GE provides $ 5.8 billion
Someone very smart Hollywood think tonight I wrote a counter analysis on GE / Vivendi deal just concluded. He factors in NBCU chief Bob Wright, former NBC forecast to shore with the acquisitions of cable – a team of Jeff Zucker ridiculously slavishly followed and took credit for
I think GE is a large and Vivendi got screwed
GE bought for $ 5.2 billion in cash and assumed debt, in addition to giving Vivendi a 20% stake in the merged entity of NBC Universal (valued at $ 44 billion in total, so theoretical Vivendi share was 8.8 billion)This now closes the chapter on offer in 2004 to sell Vivendi Universal to GE. Universal was valued at 14 billion U.S. dollars then (most of them related to the ownership of USA Network and Sci Fi Channel).
So they wanted to ride backwards. It is obvious that the management team had disastrous NBC destroying approximately 17 billion U.S. dollars + in value (adding to its investment in Oxygen, Weather Channel, iVillage and others, and taking into account the 30 billion $ valuation reached According to Comcast)Vivendi reason for the acceptance of this agreement in lieu of cash for all of Comcast and Cablevision offers was that had so much faith in the management of GE he was sure its 20% could grow over time.
That’s an astonishingly low, especially considering that it was the first Universal assets, which provide the bulk of the profits from NBCU now (particularly the U.S. and Syfy)So its 20% stake now worth 5.8 billion U.S. dollars, which completed the sale of Universal to GE for $ 11 billion.
Bob Wright credit for having the vision to see the NBC was led by a cliff and snookering Vivendi at a time when they were extremely vulnerable