NBC and Vivendi Universal agree merger

NBC closed its deal to merge with the Universal entertainment businesses today, creating a new media conglomerate that will take its place alongside giants such as Time Warner and Viacom.

NBC’s parent company, General Electric, will own 80% of the new company, to be known as NBC Universal, while the French media and telecommunications conglomerate Vivendi Universal will own the remaining 20%.

Vivendi is also getting €2.5bn in the deal.

The deal brings together the top-rated US television network among the 18-49 age group, which advertisers try hardest to reach, a major movie studio, a television production studio, a handful of cable TV channels including CNBC and a group of 29 television stations.

The new company will be led mainly by NBC executives including Bob Wright, the NBC chairman who will become chairman and CEO of the company.

Wright will also continue as vice chairman of General Electric.

Wright said the combination presented a “tremendous growth opportunity for our viewers, advertisers, employees, and GE shareowners”.

The deal gives NBC a major TV studio, ensuring the network a stable pipeline of future shows and giving it more bargaining power among other media conglomerates in negotiating for shows of its own.

Ron Meyer, the head of Universal Studios, will remain at the company as head of the Hollywood studio as well as its associated theme parks.