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NBC seeks Telemundo
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October 8, 2001: 6:52 a.m. ET
NBC offers $2B and will assume $700M in debt for No. 2 Spanish-language network.
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NEW YORK (CNNmoney) - General Electric's NBC network is in talks to acquire Spanish language television company Telemundo Communications Group Inc. from Sony Corp. and Liberty Media Corp. for more than $2 billion in cash and GE stock, a published report said Monday.
NBC's bid, which also includes the assumption of nearly $700 million in debt, is larger than rival Viacom Inc.'s (VIA.B: Research, Estimates) bid. But with no definitive agreement signed, Viacom is still a contender, the Wall Street Journal reported.
A Telemundo spokesman could not be reached for comment.
Though NBC's offer is short of the $3 billion, including assumption of debt, that Telemundo's owners sought, people close to the situation said it was a good price considering the recent slump in media stocks.
NBC's acquisition of Telemundo would mean the pairing of the No. 1 English-language broadcast network with the No. 2 Spanish-language service, the Journal said.
Telemundo sold between $200 million and $250 million in fall television ads, a 15-20 percent increase from last year. The No. 1 Spanish broadcaster, Univision Communications Inc., sold about $550 million in fall season ads, a 10 percent increase from last year.
Revamped programming has also helped boost Telemundo's ratings in the last few years.
NBC is not likely to face many regulatory hurdles if it acquires Telemundo and its eight television stations. But the deal could interfere with NBC's ability to buy the rest of Paxson Communications Corp. (PAX: Research, Estimates) under current federal regulations that limit a company from owning stations that reach more than 35 percent of the country, the Journal said.
NBC currently owns about one-third of Paxson's shares.
General Electric (GE: Research, Estimates) shares finished 6 cents higher at $37.45 Friday. Viacom shares shed $1.15 at $34.50. 
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