NBC Universal’s G4 channel may fetch as much as $600 million in a sale to Ultimate Fighting Championship, according to analysts including David Joyce of Miller Tabak & Co.
Comcast Corp. (CMCSA)’s NBC Universal is in talks to sell the video-game channel to UFC, the mixed-martial-arts fighting league, according to two people with knowledge of the situation. G4 reaches 60 million U.S. homes, and may command $5 to $10 per home in a sale, Joyce said. David Bank, an analyst with RBC Capital Markets, gave the same estimate.
Negotiations are early and a deal may not be reached, said the people, who aren’t authorized to speak publicly. Ultimate Fighting Championship’s contract with Viacom Inc. (VIA/B)’s Spike TV ends this year, one of the people said. More broadly distributed cable channels with bigger advertising revenue can fetch as much as $20 per subscriber, Joyce said.
Amelia Stewart, a spokeswoman for New York-based NBC Universal, declined to comment, as did Caren Bell, a spokeswoman for Las Vegas-based UFC, which is controlled by Lorenzo and Frank Fertitta.
The discussions were reported yesterday by the the Wall Street Journal. UFC may seek only to buy control of the network, the newspaper said, citing unidentified sources.
Comcast, which acquired control of NBC Universal in January from General Electric Co. (GE), gained 19 cents to $24.31 at 4 p.m. New York time in Nasdaq Stock Market trading. The shares had climbed 11 percent this year.
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