Universal in Reported Talks for TV Unit

Six months after selling its in-house television production assets to Barry Diller, Universal Studios is considering jumping back into the business through its partnership with Brillstein-Grey Entertainment.

Sources say Universal is negotiating to buy out Brad Grey, chief of the independent television production company, which produces such series as NBC’s “Just Shoot Me” and “NewsRadio” as well as ABC’s “Politically Incorrect With Bill Maher.”

Universal paid roughly $80 million in mid-1996 for half of Brillstein-Grey Entertainment, with Grey retaining management control and the remaining equity.

Universal asked Grey to become chairman of a new Universal television group that would expand Brillstein-Grey beyond the half-hour comedy business into dramas and first-run syndication, sources say.

Neither Grey nor Universal would comment on the speculation, but sources suggest that Grey is not interested in working as a studio employee and declined the offer. They say Universal is considering bringing back Gregory Meidel, the former chief of Universal Television, to head up the effort.

The negotiations are perplexing in light of Universal’s sale in February of USA Networks and Universal Television to Diller in a $4.1-billion transaction that gave Universal a 45% stake in the resulting company, now known as USA Networks Inc. Meidel and Diller parted ways just months ago.

At the time, Edgar Bronfman Jr., the chief of Universal parent Seagram Co., indicated that its television business had a better chance of growing in value under Diller’s leadership and combined with his cable and broadcasting assets.