Vivendi Reportedly Ready to Sell NBCU Stake - TheStreet

PARIS (

TheStreet

) --

Vivendi

is planning to sell its 20% stake in

NBC Universal

this year, the

Wall Street Journal

reports, but sources close to the matter say a final decision won't be made until mid-November and will depend largely on whether the company can get a good price for the deal.

Vivendi's consideration of a sale comes as

General Electric

(GE) - Get Report

, the owner of NBC Universal, and cable company

Comcast

(CMCSA) - Get Report

are discussing a deal to merge NBC Universal and Comcast's TV networks which would be possible only if Vivendi decides to sell.

Under the terms being discussed, Comcast would contribute cash and cable networks to NBC Universal for a 51% stake in the combined company. NBC would borrow cash and hand it over to GE, who would in turn pay Vivendi for the 20% stake. GE would initially retain the 49% stake of the company, the

Journal

reports.

A major obstacle remains the valuation of NBC Universal. Exane BNP Paribas valued the company around $24 billion, while J.P. Morgan said it could be valued as high as $35 billion.

This article was written by a staff member of TheStreet.com.