Television network NBC looks set to win Vivendi Universal's multi-billion dollar show business auction as the French media giant's board prepares to end months of agonising over its Hollywood future.
After talks with the top two contenders, Vivendi called a special board meeting in Paris that is expected to eliminate a consortium led by Mr Edgar Bronfman Jr. and approve a preliminary deal with General Electric's NBC for an entertainment merger.
Vivendi, the world's number two media company, has been weighing up securing cash in the bank to cut its debts with a sale to Mr Bronfman or keeping a hand in Hollywood and betting on a superior return in the long run under an NBC deal.
NBC has for long been Vivendi's choice after it proposed a merger to create an entertainment giant minority-owned by the French conglomerate and run by NBC management.
Under the NBC proposal, Vivendi would merge its US film and TV business with NBC's broadcast network, Spanish-language network and cable channels including CNBC and Bravo.
Vivendi would own between 20 and 25 per cent of the combination and would have the option to sell its stake in pieces over time.
Vivendi would also be able to raise cash against a future commitment by GE to buy part of its stake, to reach its debt targets, sources close to the talks say.