Although a rash of executives have left NBC Universal, even bigger changes may be on the horizon for the media giant. Two separate news reports indicate that Vivendi and NBCU's chairman Bob Wright may part ways with the GE unit.
The more likely of the two events, is the prospect that French media and telecom conglomerate Vivendi is considering the possible sale of its 20% stake in NBC Universal and could start whittling it down early next year, according to Reuters. Vivendi inherited the stake in NBC following the sale of Universal in 2003. Vivendi executives are interested in exiting NBCU before 2010, when GE has the right to force them out, according to Reuters.
Meanwhile, Bob Wright, NBC Universal's chairman and chief executive, may not be holding the reins much longer, according to The New York Times. Although he transformed the broadcast network into a full-blown media giant over the last 20 years with the expansion into cable TV and culminating with the $14 billion purchase of Universal Studios, NBC's current malaise in fourth place may be prompting GE CEO Jeffrey Immelt to consider drastic changes by replacing Wright with his younger lieutenant Jeff Zucker, who oversees the TV network.
Of course, the trouble at the TV network may not be the reason Wright will receive walking papers — especially considering the network head would replace him. Instead, Wright may be forced to leave because of GE's unwritten rule that executives retire before they turn 65 years-old, according to The Times.
While The Times article suggests Immelt may send Wright packing, it also points out that recent executive changes beneath Zucker could jeopardize Immelt's plan. Last week, David Zaslav, the president of cable, left NBCU to become chief executive of Discovery Communications and Randy Falco, president and chief operating officer of the television group, left to become chairman and chief executive of Time Warner's Internet business AOL. Zaslav oversaw the introduction of CNBC, which vaulted him to the upper ranks of NBC management. In addition to managing the business news network, he also oversaw the integration of NBC's acquisitions of A&E, Bravo, USA Network and Sci-Fi Network. Interestingly, NBC has no plans to replace the two suggesting its weak standings is hindering it from attracting top talent.
Finally, Wright reportedly wants to heed the advice of "Seinfeld" and go out on top. Of course, the hit sitcom didn't go out on top, and nor may Wright assuming The Times is right. —Matthew Wurtzel
See story about Vivendi from Reuters
See story about Wright from The New York Times
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