ENTERTAINMENT NBC-Universal merger is near, companies say

The deal would give NBC access to Universal's films.
NEW YORK (AP) -- General Electric Co.'s NBC has long been an anomaly in the media world. Even though the network enjoys high profits and ratings, it has been frustrated in its efforts to grow and remains the only major network not affiliated with a larger media conglomerate.
All that could change if NBC cuts a final deal to merge with the Universal entertainment businesses owned by Vivendi Universal. The two companies announced Tuesday that a deal was close, and that they had entered exclusive talks to resolve final details.
NBC chairman Bob Wright, who would take charge of the new company, said he expected to have a final deal in hand by the end of the month. Vivendi would retain a 20 percent share in the new company, which would likely be called NBC Universal.
A combination would mark a capstone of dealmaking for Wright, who has long sought to build NBC into a larger player in the media landscape. So far NBC has grown one bit at a time, launching CNBC and MSNBC, then buying Spanish-language broadcaster Telemundo in 2001 and entertainment channel Bravo last fall.
But a deal with Universal would give NBC a prize it has long sought: a Hollywood studio whose films it could broadcast, as well as a significant TV studio to provide programming for its main network and growing portfolio of cable subsidiaries.
If the Universal deal goes through, it would quell NBC's need to make acquisitions for some time, Wright said.
Equally important to NBC in the deal is the acquisition of Universal's three cable channels: USA, Sci-Fi and Trio, a small but growing pop-culture channel.