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CNN Live At Daybreak
Merger Expected: GE, Vivendi Working to Close Entertainment Deal
Aired October 03, 2003 - 06:13 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: It's time for a little "Business Buzz" right now. NBC and Vivendi Universal could reach a deal to merge their entertainment businesses as soon as today.
Carrie Lee has the latest live from the Nasdaq market site.
This has been a long time in coming, hasn't it?
CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: It really has, Carol. And apparently both of these sides, General Electric, as well as Vivendi, were talking late into the night last night. Now according to reports, GE's NBC could finalize a deal to buy Vivendi Universal's U.S. entertainment assets as soon as today. GE's CEO Jeffrey Immelt said today that it's his expectation to reach a deal very soon. This deal is worth an estimated $40-plus billion.
NBC and Vivendi execs met late last night, as I said, to close the deal. And NBC is expected to take an 80 percent stake in the businesses, Vivendi to hold a 20 percent stake. So sort of similar to what they were talking about about a month ago.
Now what this merger means is a fusion of the NBC network as well as NBC's cable stations with Vivendi's Universal Pictures, as well as its television production studios and its theme parks. The new entity will be called NBC Universal. It will be the sixth largest media company in the world. So certainly a big story to watch today.
Taking a look at early stock indications, futures are pointing to a lower open right now. We'll get the big jobs report coming at 8:30 Eastern telling us what the unemployment rate is looking like for the month of September. The economists expecting the economy to lose 25,000 jobs for the month.
One stock to watch, Siebel Systems. The software company last night said it will meet profit expectations for the three months ending September, although sales could come in a little bit light.
Carol, that's it for business news.
COSTELLO: All right. Carrie Lee, we'll get you -- we'll get back to you in the next half hour, many thanks, live from New York City this morning.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Entertainment Deal>
Aired October 3, 2003 - 06:13 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: It's time for a little "Business Buzz" right now. NBC and Vivendi Universal could reach a deal to merge their entertainment businesses as soon as today.
Carrie Lee has the latest live from the Nasdaq market site.
This has been a long time in coming, hasn't it?
CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: It really has, Carol. And apparently both of these sides, General Electric, as well as Vivendi, were talking late into the night last night. Now according to reports, GE's NBC could finalize a deal to buy Vivendi Universal's U.S. entertainment assets as soon as today. GE's CEO Jeffrey Immelt said today that it's his expectation to reach a deal very soon. This deal is worth an estimated $40-plus billion.
NBC and Vivendi execs met late last night, as I said, to close the deal. And NBC is expected to take an 80 percent stake in the businesses, Vivendi to hold a 20 percent stake. So sort of similar to what they were talking about about a month ago.
Now what this merger means is a fusion of the NBC network as well as NBC's cable stations with Vivendi's Universal Pictures, as well as its television production studios and its theme parks. The new entity will be called NBC Universal. It will be the sixth largest media company in the world. So certainly a big story to watch today.
Taking a look at early stock indications, futures are pointing to a lower open right now. We'll get the big jobs report coming at 8:30 Eastern telling us what the unemployment rate is looking like for the month of September. The economists expecting the economy to lose 25,000 jobs for the month.
One stock to watch, Siebel Systems. The software company last night said it will meet profit expectations for the three months ending September, although sales could come in a little bit light.
Carol, that's it for business news.
COSTELLO: All right. Carrie Lee, we'll get you -- we'll get back to you in the next half hour, many thanks, live from New York City this morning.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Entertainment Deal>
