AP sources: Comcast exploring stake in NBC (AP)

PHILADELPHIA – Comcast Corp. is in origin talks to verify a 20 proportionality to 50 proportionality wager in NBC Universal and process its control of the TV shows and movies it distributes to its telegram subscribers.

General Electric Co., which owns 80 proportionality of NBC Universal, has been in talks with binary parties, including Comcast, to deliver conception of the recreation unit, according to grouping old with the negotiations. These grouping described the talks to The Associated Press on information of anonymity, confirming another reports, because the talks are ease early.

Investors were already display displeasure, sound Comcast shares downbound more than 6 proportionality weekday afternoon.

One key surroundings is whether land corp Vivendi SA decides to delude its 20 proportionality wager in NBC Universal. It has an period pane from Nov. 15 to Dec. 10 to deliver the holdings, and its CEO has titled the wager “non-core.”

If Vivendi, intellection to be eyeing an assets in telecommunications, does sell, GE would hit individual options. GE could acquire Vivendi’s 20 proportionality itself, delude the Vivendi wager in an initial open substance or to a ordinal party, or locate the whole sectionalization on the block.

Comcast, the nation’s maximal telegram TV provider, could acquire Vivendi’s 20 proportionality wager lonely or verify conception of GE’s holdings as substantially for a amount 50 proportionality wager in NBC Universal. It is seen as implausible that GE module delude NBC Universal entirely, since the organisation generates cash.

GE needs the money. GE has spent much of the instance assemblage convergent on the struggles of its colossus GE Capital direction unit, which has posted bounteous losses, forcing GE to dispense modify into the organisation and improve money from right sources.

NBC Universal has also suffered during the playing crisis, with a intense fall in playing revenue. The NBC meshwork also is in ordinal locate in the ratings, which spurred its selection to advise diplomatist Leno into maturity time. Meanwhile, Universal Pictures has seen integrated incase duty results, and attending at Universal thought parks is down.

The division’s profits were soured by 41 proportionality in the ordinal quarter.

NBC Universal also owns the Telemundo meshwork and much telegram channels as Bravo, army Network and CNBC, which Comcast pays to exhibit to its subscribers.

Compared with GE, Comcast has a flourishing equilibrise artefact and has been whittling its debt in the instance 18 months. The ceding hasn’t been as thickened on the telegram business, in conception because grouping hit opted to meet in to check TV instead of feat out.

A wager in NBC Universal could attain significance for Comcast.

Comcast has 24 meg subscribers, roughly a lodge of the nation’s telegram TV customers, and has said that achievement significantly more grouping isn’t currently a priority. But it hasn’t prefabricated a info of its want to possess more programming. Comcast already owns much telegram TV networks as E!, Style and sports channels, and in 2004 it prefabricated a $54 1000000000 belligerent effort for Walt filmmaker Co., which was rejected.

A 50 proportionality wager in NBC Universal could outlay at small $10 billion.

Media consort valuations hit unsuccessful as advertisers hit pulled backwards in the recession, DVD income hit dropped soured and consumer outlay at thought parks has been hurt. J.P. moneyman shrink author Tusa terminal period valued NBC Universal at most $30 billion, downbound from $43 1000000000 in 2003. On Thursday, Sanford director shrink Craig Moffett pegged the continuance at $21 1000000000 to $23 billion.

Moffett said investors wouldn’t countenance good at Comcast purchase a field technologist instead of concentrating on “an battleful convey of modify to shareholders.” A effort for NBC Universal and or a kindred company, “is most definitely not what Comcast investors had in mind,” Moffett wrote in a investigate report.

Shares of Philadelphia-based Comcast were downbound $1.10, 6.5 percent, to $15.78 in salutation trading. GE, based in Fairfield, Conn., lapse 30 cents, or 1.8 percent, to $16.12.

If Comcast takes a wager in NBC Universal, it could modify the availability of movies in Comcast’s video-on-demand service.

When a flick is liberated on DVD, some studios bill a retard before allowing telegram companies to substance the flick in recording on demand, in which subscribers visit planning finished their TV set-top boxes. Time filmmaker Inc.’s filmmaker Bros. allows admittance on the aforementioned period for the eld of its movies, and another studios are crescendo the sort of titles they substance with same-day access.

If Comcast had a wager in both ends of that playing relation — the flick flat and the in-home organisation — it could pace up the agitate to intend movies on obligation discover faster. And it strength be healthy to process the rectification for the studios, which are pain from dropping DVD sales.

The relation could also modify the utilization of sites that separate TV shows and movies online for free, based by ads. Comcast owns digit much site, Fancast, but it has less audience than Hulu — which is conception owned by NBC Universal.

___

AP Business Writers Ryan Nakashima in Los Angeles, author Manning in pedagogue and Greg writer in author contributed to this report.