GE Reportedly Discusses Turner Deal, but No Action Is Taken

A possible partnership between Turner Broadcasting and General Electric was discussed Friday at a regularly scheduled GE board meeting, but no deal was on the table and the GE board took no action, sources said.

Turner Broadcasting Chairman Ted Turner, GE Chairman John F. (Jack) Welch Jr. and NBC President Robert C. Wright have been in exploratory talks regarding a possible merger or other partnership between the two companies.

NBC and Turner executives see synergies between NBC News and Turner’s CNN, for example, as well as between NBC Entertainment and Turner’s TNT, TBS and Cartoon Network. But while Turner has made no secret of his desire to acquire a network, sources say that GE will require 51% ownership of any combined company.

One possible scenario would be for Turner to issue stock in a merger that would leave GE a significant shareholder in the combined company. Time Warner and Tele-Communications Inc., Turner’s two biggest shareholders, might remain investors with voting shares reduced below 5%. Turner is said to have the support of TCI Chief Executive John C. Malone in his talks with GE, but he also would need the approval of Time Warner in the event of a deal.