Jeff Immelt: "We Know This World"

Vivendi will click perfectly with NBC, according to GE's CEO. Would Jack Welch have made the deal? I really don't care, he says

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September 4, 2003 at 4:00 AM UTC

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The media world is abuzz with news that Vivendi Universal (V ) has signed a preliminary deal to merge its Universal Entertainment assets with General Electric (GE ). The combined company would have had 2003 revenues of $13 billion, with holdings that include film and TV studios, theme-park interests, cable channels like Sci-Fi, USA Network, and Bravo, and the hit NBC network.

And GE won't have to cough up any initial cash to get its 80% interest in the new entity. But after years of avoiding the production business, some wonder if GE is blinded by a bargain price. The equity deal is valued at $14 billion. GE Chairman and CEO Jeffrey Immelt spoke with BusinessWeek Associate Editor Diane Brady on Sept. 3 about what the deal could mean for his company. Edited excerpts of their conversation follow: