After Vivendi's second board meeting in a week, Vivendi Universal (NYSE:V) and General Electric (NYSE:GE) today announced exclusive negotiations for the merger of Vivendi's Universal Pictures studio, U.S. TV businesses, and its five theme parks with GE's NBC. Last week, Vivendi's board of directors narrowed its choice of suitors to two.

According to a company press release, the merger would create an entertainment megalith with $13 billion in annual revenue, "industry-leading annual EBITDA of $3 billion, and the highest operating margins of any major television media company in the United States." The deal would leave Vivendi with 20% ownership of the merged entity, $1.6 billion in reduced debt, and $3.8 billion in cash considerations from a GE commitment to issue GE stock. That's key, as Vivendi looks to pay down its $14 billion in debt.

In addition to #1 ranked NBC, the combined entity would have a complementary portfolio of cable brands, including USA, SciFi Channel, and CNBC. The company has synergistic possibilities, as it could take advantage of Universal's library of movies -- including such blockbusters as The Fast and the Furious and 2 Fast 2 Furious -- by airing them on NBC's networks. Another possibility is "the broadcasting of NBC events on-site at theme parks around the world," much the same way that ESPN and ABC utilize Disney World.

Everybody has a chance to win here. GE gets content; Vivendi gets a lifeline. Vivendi is up almost 8% to $18.21 in early afternoon trading.