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Ed
03-16-2011, 08:16 AM
From today's Orlando Sentinel ~~

Blackstone offers to sell half of Universal Orlando to NBCUniversal

NBCUniversal already owns half of the attraction. If it balks at buying Blackstone's half, the entire Orlando operation could be offered for sale to a third party.

By Jason Garcia and Jeff Weiner, Orlando Sentinel
8:01 AM EDT, March 16, 2011

The Blackstone Group has offered to sell its 50 percent stake in Universal Orlando to co-owner NBCUniversal, a move that could ultimately put the entire resort on the auction block.

NBCUniversal, which in January was acquired by Comcast Corp., has until June 12 to buy Blackstone out. If it doesn't, Blackstone has the right to seek out bidders to buy both sides' shares in the resort.

NBCUniversal would be compelled to sell if Blackstone were able to find a rich enough offer, according to the contract governing the two companies' joint ownership terms. The third-party offer would have to be at least 90 percent of both companies' interests in Universal as implied by Blackstone's asking price for its own half.

Blackstone's asking price wasn't disclosed.

The offer to sell from Blackstone, the private-equity giant that acquired its stake in Universal in 2000 and in late 2009 bought SeaWorld Parks & Entertainment, comes with Universal in the midst of the strongest financial run in its 21-year history. The resort has in recent months churned out record attendance, revenue and profit thanks to the popularity of its smash-hit Wizarding World of Harry Potter, which opened in June 2010.

Universal drew 11.2 million visitors in 2010, up 20.3 percent from a year ago. The resort's 2011 attendance is up 50 percent so far this year, the resort disclosed this week, thanks to Wizarding World's continuing popularity.

A sale would have huge implications for Universal. Some of the resort's most important licensing contracts — including its agreement with Warner Bros. for the rights to Harry Potter — include provisions in which Universal could lose those rights if it is acquired by a new owner. The resort could even lose the right to name "Universal."

Universal disclosed Blackstone's offer to sell in a securities document filed Monday. It was first reported by the Wall Street Journal.

NBCUniversal spokeswoman Cindy Gardner told the Journal that the company is "studying the proposal and considering our options."

A spokesman for Universal Orlando deferred comments to NBCUniversal. Representatives for Blackstone were not immediately available Wednesday morning.

If NBCUniversal opts not to buy Blackstone's stake and is Blackstone is unable to find a third-party buyer for the full resort within 270 days — nine months — Blackstone would be prohibited from attempting again for another year.

NJGIRL
03-16-2011, 08:59 AM
This is making me nervous. We enjoy Universal and really don't want to see any major changes at this time. :(