BURBANK, Calif., Sept. 22 -- Speculation heated up Thursday that Walt Disney Co. will try to buy most of NBC from General Electric Co. for as much as $5 billion following an unconfirmed report that Disney Chairman Michael Eisner has met with GE executives. Disney representatives had no comment on rumors that talks between Disney and GE have intensified. The Wall Street Journal, citing an unnamed individual close to the situation, reported that the two companies remain several hundred million dollars apart on price. Analysts also believe Time Warner Inc.'s interest in buying NBC has cooled off due to regulatory hurdles. Time Warner was widely reported earlier this month as having discussed buying half of NBC but was faced with the prospect of difficulties in getting the deal approved by the federal government due to rules limiting cross-ownership of cable and broadcast properties. Disney has been interested for several years in buying one of the Big Three networks and was thought to have considered buying CBS Inc. earlier this summer. Such a deal would give Disney guaranteed distribution for its programming. Analysts have said it has become something of an open secret that GE, which bought NBC in 1986 as part of its takeover of RCA and has seen it slip to third place in the ratings, is holding discussions about unloading the network or finding a strategic partner. Experts also have said NBC appears to be positioning itself for an eventual alliance or sale by expanding into cable, buying TV stations and making long-term deals with affiliates.
Analysts have estimated that GE values NBC on its books at $4 billion, but there is some doubt it would fetch that price because of poor performance in recent years. NBC has been the subject of rumors for years, fueled by poor performance by its shows, losses at the news division, losing David Letterman to CBS and the public-relations nightmare over its 'Dateline NBC' report about General Motors Corp. trucks.
