GE talks to Comcast about NBC Universal: sources

NEW YORK (Reuters) - General Electric Co is holding talks to sell 51 percent of NBC Universal to COMCAST (CMCSA.NQ)Corp, which would pay up to $7 billion in cash and contribute some programing assets to the new, jointly owned company, according to a person familiar with the matter.

GE, which owns 80 percent of NBC Universal, is considering a host of proposals for NBC Universal as partner Vivendi SA explores whether to sell its 20 percent stake.

At the moment, however, a deal with Comcast appears to be the most likely outcome, though the source said discussions are still in the early stages and could fall apart.

Under the plan, GE would buy Vivendi's stake, and put the borrowings that fund that deal on NBC Universal's balance sheet. Other debt would also be added to the balance sheet of what would essentially be a new, stand-alone company.

Comcast would take a 51 percent stake in that company by contributing a combination of about $6-$7 billion in cash and some of its own programing assets, the source said.

Over time, Comcast could increase its ownership stake, most likely funding it from cash generated by the new NBC Universal, according to CNBC, which first reported the news.

The structure would allow Comcast to acquire the cable assets it has long coveted, without taking on any new debt or issuing equity.

Shares of Comcast dropped 6.6 percent on Nasdaq. GE shares were down 2.2 percent the New York Stock Exchange at mid-afternoon.

Other sources said GE has also studied several additional options should Vivendi drop its stake in NBC Universal, which owns the NBC broadcast network plus theme parks, a movie studio and cable channels like Bravo, USA and CNBC.

Among those options, GE could find another buyer for NBC Universal or look to sell part of the media company through an initial public offering.

Vivendi, NBC Universal, Comcast and GE have declined to comment on any talks.

Time Warner Co is another company often linked to interest in NBC Universal. But another source said the company would rather avoid the burden of acquiring the poorly performing NBC broadcast TV network, even if it is attracted to the possibility of adding more cable channels to a current lineup that includes TBS, CNN, and HBO, among others.

Vivendi has the right to exercise its sell option in NBC Universal each fall until 2016, but is thought likely to do so this year to fund businesses that it finds more essential.

(Reporting by Anupreeta Das and Yinka Adegoke; Writing by Paul Thomasch; Additional reporting by Scott Malone in Boston and Dominique Vidalon in Paris; Editing by Derek Caney and Richard Chang)