The shrunken souffle: many suspect that GE's motive in making the Universal deal is essentially financial, not strategic.(Headliners)(a discussion of Vivendi's attempt to sell its Vivendi Universal Entertainment, and General Electric's attempts to buy it)

Video Business, September, 2003 by Sweeting, Paul

EXECUTIVE SUMMARY: * Owning a place in Hollywood once seemed so wonderful for Vivendi. By last week, however, the company almost couldn't give Universal away. * The deal was just too good for GE to pass up. It gives the NBC parent increased leverage with cable operators in negotiating carriage fees and decreases its dependence on ad sales.

What a difference three years make. Back when French water utility Vivendi SA was trying to transform itself into a global media powerhouse, its acquisition of Seagram, which owned Universal Studios and its affiliated music company, was considered the capstone to Jean-Marie Messier's ambitions. It gave the French, for the first time, a major foothold in Hollywood, and, when combined with Vivendi-owned...

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