GE/Comcast/NBCU: Latest “Rumors”…

Reuters’ Yinka Adegoke and Anupreeta Das write about the latest tittle tattle surrounding NBC Universal’s future…

GE has negotiated a redemption option, that will give it the right to redeem all or part of its stake in the so-called ‘newco’ in exchange for cash at the three-and-a-half year mark and at a seven-year mark, the sources said. They spoke anonymously because the talks are private.

The new NBC Universal is expected to be able generate enough cash to pay down $9 billion in debt that would be added to its books as part of the deal, and purchase the rest of the company from GE.

“There’s a sense there will be sufficient cash flow to do that,” said one person familiar with the talks.

But under the deal being negotiated, Comcast would also provide a backstop of around “mid-single billion” dollars, if there is insufficient cash to buy out GE’s stake within the agreed time frame, according to the sources.

Talks between Comcast and GE continue, and it is unlikely the two sides will reach a deal in the next three-to-four weeks, a second source said.

There’s also this little nugget which some will take too much stock in…

Rupert Murdoch’s News Corp (NWSA.O) and John Malone’s Liberty Media Corp (LINTA.O) are also interested in NBC Universal, though neither has approached GE so far, CNBC reported, citing sources.

While some no doubt would make a lot of hay out of a New Corp owned MSNBC and would count the seconds until Keith Olbermann quit, there’s about as much chance of News Corp owning NBC Universal as there is of the Red Sox winning the World Series this year.