worst idea ever. Warner already has theme parks and tv outlets, and their film division is already overweight after assimilating New Line. What would be the point? Do they want the Uni media library?
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Jeffs and Their Mutts
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If the two sides have, in fact, narrowed a time frame for beginning formal talks, they also appear to have in mind a solid idea about how to possibly structure a transaction, according to the NEWSWEEK sources. A goal for GE would be to avoid the huge tax bill it would incur in selling NBC Universal outright to Time Warner in a transaction valued in the tens of billions of dollars, say the sources familiar with the situation. One model for such a transaction might be the deal GE struck in 2003 to bulk up NBC by combining it with Universal, then owned by Vivendi. That combination left the French company with a hefty, though minority, 20 percent stake in NBC Universal.
Under a similar scenario, Time Warner and GE could combine most, if not all, of their entertainment operations into a newly formed separate company, in which Time Warner would be the majority owner. The bet is investors would better recognize the value of a pure entertainment entity with big media brands, propelling the stocks of parent companies Time Warner and GE. And if that happens, the two Jeffs might just live out their corporate careers happily ever after.
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