Vivendi Universal said Tuesday afternoon it signed an agreement with General Electric for the two companies to conduct negotiations for a merger of Vivendi Universal Entertainment (VUE) and NBC. The
merger would create one of the world's largest media companies, 80% owned by GE and the rest by Vivendi. The new company would have 2003 revenues of $13 billion from its assets, which would not
only include NBC but also GE's cable channels CNBC, MSNBC, Bravo and VUE's TR!O, Sci Fi and USA Network. NBC CEO Bob Wright would lead the new company. VUE shareholders would receive at closing $3.8
billion in cash and the benefit of a $1.6 billion debt reduction. Vivendi would hold three seats on the merged entity's board.