NBC Universal profit drops 30%, and that's before Conan's payout

General Electric released its fourth-quarter earnings this morning, and let's just say that NBC Universal got sacked. NBC's costly contract for "Sunday Night Football" put a drag on the company's financial gains, and Universal films turned in lackluster results.  

Segment profit for NBC Universal was $602 million, 30% less than the fourth quarter of 2008. During the year-ago period, the media unit was floating on the success of "Mamma Mia" DVDs. Revenues for all of NBC Universal were down 4%, to $4.26 billion.

GE executives are already warning investors that the current quarter for the media company -- at least for the broadcast unit -- will be something of a wipeout. NBC's losses from its Winter Olympics coverage will be far greater than many were estimating: about $250 million. And then, of course, the company must account for the $33-million severance package to be paid to Conan O'Brien. The late-night debacle will cost NBC at least $45 million, including about $12 million to say good night to executive producer Jeff Ross, drummer Max Weinberg, sidekick Andy Richter and the 185 other people who worked on "The Tonight Show."

-- Meg James   

Is Vivendi ready to bid au revoir to NBC Universal?

French media company Vivendi may need some extra cash -- and that comes as good news to General Electric Co.

GE has been negotiating to sell its majority stake in NBC Universal to the nation's largest cable operator, Comcast Corp. But before GE can march down the aisle with its new amour from Philadelphia, GE's partner in the venture for the last five years, Paris-based Vivendi, would have to agree to file for divorce.

And that’s where a Brazilian phone company comes in. Vivendi acknowledged over the weekend that it finally prevailed in its months-long bid to acquire a controlling interest in GVT, a Brazilian telecom firm, for $4.2 billion. A few weeks ago it appeared that Vivendi would be foiled in its pursuit of GVT and, therefore, would be in no hurry to unload its stake in NBC Universal.

But now, with a sizable acquisition to finance, it seems more likely that Vivendi will announce in the coming days that it intends to exercise its option to sell its 20% stake in NBC Universal. Vivendi could use the money -- expected to be at least $5 billion -- to underwrite the purchase of the GVT shares.

NBC Universal insiders expect the Comcast takeover to be announced this week.

Under the proposed deal, Comcast would contribute its entertainment channels -- including its nine regional sports networks, E!, Versus, Style and the Golf Channel -- and about $4 billion to $6 billion in cash for 51% control of the new entity.

GE, meanwhile, would contribute all of NBC Universal. It would receive 49% of the joint venture and a payment of about $9 billion, which the new entity would take on as debt.

The deal on the table also would allow Comcast to use cash flow from the joint venture to buy out GE within eight years, according to people familiar with the discussions.

A Vivendi spokesman declined to comment, as did a spokeswoman for GE and a spokeswoman for Comcast.

-- Meg James