Weeks after Hulu’s board began exploring a sale, Mr. Iger, who is attending the Allen & Co. media conference here, predicted that a sale of the television-and-movie site would happen but said he couldn’t say when.

Talks with around eight to 10 potential buyers, including Google Inc., Microsoft Corp., Yahoo Inc., U.S. TV distributors and non-U.S.-based media and technology companies, are in the early stages, according to people familiar with the matter. The companies have previously declined to comment on the talks.

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In case you haven’t heard, the tech and media moguls have jetted their private planes to Sun Valley, Idaho, for the exclusive annual Allen & Company confab and are probably easing into the cocktail hour just about now.

Break out the Kistler Chardonnay and name tags!

(I secretly love that the 300 moguls all wear name tags, even though they are all so fabulously famous.)

Among the highlights for the weeklong confab beginning today will be an interview of Facebook CEO and co-founder Mark Zuckerberg by Microsoft CEO Bill Gates, in which I assume they will fall all over themselves in a race of mutual admiration.

To be fair, it seems genuine and Sun Valley is not for unpleasantries anyway.

While Allen & Company — in its investment banker mode — likes to keep the schedule a state secret, it never is, so I am here to tell those planning their time in Sun Valley that the chit-chat will be Saturday.

Also sure to get a lot of ink, since all the owners and possible marks, um, potential buyers, will be there: Whither Hulu?

The premium online video service is famously for sale, and the moneybags at Google, Microsoft, Amazon and Yahoo (smaller bags!) are all taking a gander.

It will not be sold by week’s end, of course, although there will be all kinds of breathy media coverage as the powerful players shuttle to and fro from their gratis luxe condos in noisy hush-hushery.

Who will then come over to the bar to tell the gathered and increasingly drunken reporters — press is not invited in, but they’re there like kudzu all week — all about it.

Of course, there will be some cute anecdotes about the rich and famous — one year, it was News Corp. head Rupert Murdoch losing some item of his wife’s in said bar with everyone scurrying around to find it.

If Us Weekly were covering Sun Valley, that section would be called “Moguls Are Just Like Us!”

Actually, they’re not at all — mostly, they are meaner and more aggressive and greedier, although endlessly riveting.

That’s why the most awkward part of the event will be all the Sun Valley photos that appear without fail of these powermongers in shorts and fleece.

(Note to newcomers: Very few look good in shorts and fleece.)

Lastly, it would not be a modern Allen & Company Sun Valley gathering without continued fretting and fixating on the digital onslaught, even though there are scads of those invited techies competitively mountain biking the pretty mountains there.

This year’s focus will be the IPO gang from Zynga, Groupon and, of course, Facebook, whose insane market valuations are the envy of the media gang, who are mostly older and continually grumpy about it all.

But, the kids love this Internet thing and so the moguls will cope with the change, even as what happens in Sun Valley — power playing, but with a better view — never ever changes.

How’s this for irony:

It was less than a year and a half ago that Owen Van Natta was ousted from his job as CEO of Myspace.

But last week — just as the failed social networking site sold for a paltry $35 million — Van Natta could have bought it himself for a fraction of his stake in Zynga, the social gaming phenom that just filed for its IPO and where he’s a top exec and shareholder.

As the San Francisco-based Zynga’s chief business officer, he was listed second after CEO and founder Mark Pincus on its S-1 on the list of top management and also serves on its board.

The filing also showed that Van Natta got about $43 million in total compensation in 2010.

That was due to part of his large Zynga holdings, including about three million shares he owns outright via restricted stock units that Zynga calls ZSUs, as well as 6.75 million more in options priced at a low $6.43 each.

All told, he has a 1.6 percent stake in the company. That could be worth upwards of $325 million if Zynga garners an expected $20 billion valuation. And it could be even more if its public offering pops higher as other recent Internet outings have done.

And that’s why when Van Natta arrives at the fancy and exclusive Allen & Company mogul fest in Sun Valley this week, he might want to thank News Corp. digital head Jon Miller — the man who fired him from Myspace.

After the Myspace debacle in February of 2010, according to its filing, it appears that Van Natta bounced back quickly to enter into a consulting agreement with Zynga in mid-April via his Luminor Group.

By August, he was hired on full time by Pincus and also became a director.

One reason for getting that plum post, Zynga said, was Van Natta’s experience as a longtime Internet exec at Amazon and, more importantly, Facebook.

He left the social networking giant in mid-2007 — where he had served as COO and, later, chief revenue officer — after relations with its CEO and co-founder Mark Zuckerberg became somewhat tense.

But that’s water under the bridge now; and, in fact, the filing was full of information about the close relationship with Facebook, which is a critical one for Zynga.

And, of course, for Van Natta, who gets my award for best Silicon Valley recovery of 2011.

Had he stepped up and bought Myspace from his large Zynga proceeds, though, he would have gotten my lifetime achievement award for pure moxie.

In a surprisingly quick and even stealthy move, AOL has renewed and expanded its search agreement with Google, even though many had expected there to be more-competitive bidding throughout the fall to win the deal.

The five-year partnership to provide search technology and search advertising by powering AOL Search is more wide-ranging than the one it replaces, also including improved search products, global search, mobile search and also a video-distribution arrangement with YouTube, which could evolve over time to include content partnerships.

“We have tried to make a deal that has 100 percent alignment on what we each do best,” said AOL CEO Tim Armstrong in an interview last night with Boomtown. “At the end of the day, Google checked all the boxes.”

The search partnership between AOL (AOL) and Google (GOOG)–the third since 2002 actually–was set to run out December 19.

Thus, AOL had been talking for months with a number of new partner possibilities, especially with Microsoft (MSFT) about using its Bing search service for AOL.

Microsoft has been trying to improve its market share with the innovative Bing and has made great strides.

But, despite a valiant effort so far, it is still the No. 3 search engine, with about 11 percent of the market share, according to the latest comScore (SCOR) report for July, compared to 66 percent for Google and 17 percent for Yahoo (YHOO).

Adding AOL would have been a plus for Microsoft, since it has a 2.3 percent share.

But Armstrong said a deal was worked out early once AOL got what it wanted from Google, which certainly had the inside track in terms of experience in working with AOL.

Nonetheless, AOL had started the process of re-evaluating who it would pick to serve its search needs late last summer and had planned for a process to last closer to when the Google deal expired.

In April, Armstrong said, AOL re-engaged with all potential partners worldwide, which he said numbered a half-dozen.

He declined to name them, but sources said the other companies included Yahoo, as well as China’s Baidu.

The talks with Google were turbocharged when Armstrong–who, ironically, was one of the key Google execs who negotiated the first AOL deal, when he headed U.S. ad sales there–met with Google CEO Eric Schmidt and co-founders Larry Page and Sergey Brin at the Allen & Co. conference earlier this summer in Sun Valley, Idaho.

The deal moved quickly after that, with Armstrong wanting AOL to get access to the search innovation pipeline at Google, rather than just receive a more basic product.

He would not say if Google guaranteed search ad revenues in the deal, but sources said it has similar terms to the previous deal, which did include them.

The video part of the deal puts AOL content more prominently on YouTube and presumably it will be better programmed. AOL and Google will share ad revenue on the premium videos.

The mobile details are still being worked out, but will likely be served via Google’s mobile technology from its AdMob acquisition.

Armstrong admitted Google had the advantage from the start, especially since it knew how AOL Search performed, although early talks between the companies were initially rocky.

Perhaps that was due to the massive writedown in 2009 of the $1 billion investment Google–a key part of its previous search deal–had made in 2005 for a five percent stake in AOL, when it was still owned by Time Warner (TWX).

Armstrong also noted he wanted to avoid a lot of attention and uncertainty a bidding war would surely create.

“We had a no-drama policy on this,” said Armstrong. “And, as it turned out, this was not a single, not a double, not a triple, but a home run for us.”

Here is a detail-free–with promise of more to come–8-K filing AOL submitted to the Securities and Exchange Commission on its new deal with the Silicon Valley search behemoth:

AOLInc

Here is the official press release on the new Google-AOL deal:

AOL AND GOOGLE RENEW AND EXPAND GLOBAL PARTNERSHIP

MOUNTAIN VIEW, Calif. and NEW YORK, NY–September 2, 2010–Google Inc. (NASDAQ: GOOG) and AOL Inc. (NYSE: AOL) today announced a five-year renewal and expansion of one of the largest and longest-standing partnerships in Internet history. The global alliance, which has at its core Google’s provision of search services to AOL’s content network and properties, in exchange for a revenue-sharing arrangement between AOL and Google, will be expanded to include mobile search and YouTube.

“Today is another important step in the turnaround of AOL,” said Tim Armstrong, AOL’s Chairman and Chief Executive Officer. “AOL users will be getting a better search and search ads experience from the best search company in the world–Google. After nearly a decade-long partnership in search, we’re looking forward to expanding our global relationship to mobile search and YouTube. All aspects of our partnership will be improved by this deal.”

“We’re excited to deepen our partnership. This agreement combines Google’s expertise in search and advertising with AOL’s strength in online content,” said Eric Schmidt, Chairman and Chief Executive Officer of Google. “It’s particularly exciting to see our relationship expand into video and mobile. These areas are now at the heart of users’ online experiences and at the core of both of our businesses.”

The partnership includes a broad range of features that will improve and expand the products and services offered to consumers.

· Search Products: Google will provide AOL with additional features and enhancement to its leading Web search products that will improve the consumer search experience across AOL’s network of sites.

· Advertising Products: Google will provide AOL with best-in-class ad formats, giving AOL consumers a better, more relevant ad experience.

· Mobile Search: As AOL renews its focus on mobile apps and content, the companies will work together to expand the alliance to cover mobile search.

· YouTube: AOL and YouTube have agreed to a content partnership that will bring AOL’s video content to YouTube.

· Global Focus: The alliance is international in scope and will provide improved experiences to AOL’s worldwide audience.

After longtime Internet tech exec Owen Van Natta was ousted from his job as CEO of MySpace last February, after clashing with News Corp. (NWS) digital chief Jon Miller and also the other two top execs at the troubled social networking site, he seemed to drop off the map a bit to chillax and regroup.

Not for long, though, as the high-profile Van Natta (pictured here)–he was also a top exec at Facebook in its early days, as well as at Amazon (AMZN) before that–soon began doing mentoring and also unofficial consulting work with various start-ups in which he was an angel investor or had developed an interest.

Most especially, according to numerous sources, that effort has now been largely focused on Zynga, the red-hot social gaming company that has been on a growth and revenue tear of late.

Under CEO and founder Mark Pincus, that has included big new rounds of investment, renewing its partnership with Facebook after some contention, striking another deal to put its popular games such as Farmville throughout Yahoo (YHOO) and, reportedly, working on an even bigger deal with Google (GOOG).

It’s been a very active time for Zynga, which has been contemplating an initial public offering.

All that, sources said, has prompted Pincus to increasingly bring in Van Natta as an adviser to the start-up, focused mostly on strategy and operations.

And, said sources, that could eventually result in a more formal role, such as Van Natta joining Zynga in an official job, like COO. Many say that both have been seriously contemplating such a move in recent weeks.

In fact, at the recent Allen & Co. media confab in Sun Valley, which both attended, Van Natta and Pincus told many of Van Natta’s more substantive advisory role.

A COO job like that would not be a big leap for Van Natta, who was COO and close advisor to Facebook CEO and founder Mark Zuckerberg at the nascency of the company.

Van Natta was key to some important early deals, such as bringing on Microsoft (MSFT) as an investor and staffing the young service.

In doing so, he formed a close bond with the then less experienced Zuckerberg.

Eventually, though, that relationship cooled, and Van Natta’s job shifted as more execs joined.

Van Natta left the social networking giant in early 2008.

He did a short stint as CEO of music discovery site Playlist later in 2008, but was put in charge at MySpace as part of an awkward troika of leadership by the following April.

Although he moved to reinvigorate the tarnished service, Van Natta’s job there was short-lived, After much internal wrangling with COO Michael Jones and product head Jason Hirschhorn, Miller suddenly fired him in a tense meeting earlier this year.

To be sure, to grab a big job at Zynga would be a splashy move for both the company and Van Natta, who has clearly seen quite a few of them in his Internet career.

When I contacted them to ask about Van Natta’s role, Pincus declined comment and Van Natta has yet to respond.

In an interview Thursday morning at the Allen & Co. conference in Sun Valley, WPP LLC chief executive Martin Sorrell cited the possible widening of Europe’s economic troubles along with the coming expiration of some tax cuts for business as among the fears of the media, entertainment and technology executives attending the annual event. “People feel that things are uncertain,” he said.

Liberty Media Chairman John Malone echoed the feeling, telling a group of reporters Thursday morning that he believes the high levels of debt held by the U.S. and other governments could hamper growth for years to come. Gordon Crawford, a well-known media and technology investor with Capital Research & Management Group, said earlier in an interview that he believes the U.S. is in for “several years of very modest growth.”

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Speaking on the sidelines of the Allen & Co. media conference in Sun Valley, Mr. Krikorian said television manufacturers like Sony (SNE) and Samsung have an opportunity to band together to compete with companies that are developing ways to blend traditional cable programming with Internet content.

Mr. Krikorian expressed deep skepticism that Google, in particular, could dominate the market of piping digital television and other Internet content into consumers’ living rooms. It is also an open question, he said, whether Apple, whose Apple TV software he praised, can take a lead in the space, or whether cable companies or even TV manufacturers have an opportunity to step in.

Mr. Kirkorian was a central player in the first wave of attempts to connect the Internet and television, founding Sling Media, which makes it possible for users to watch content from their home TVs on mobile phones and computers. He sold Sling Media to EchoStar in 2007 but has continued to advise a number of small and large companies in the digital-media industry.

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They are also getting down to business.

Google Inc. (GOOG) Chief Executive Eric Schmidt and Facebook chief executive Mark Zuckerberg were spotted driving away from the Sun Valley Lodge in Mr. Schmidt’s light blue rental car for a private rendezvous. Schmidt, smiling, was carrying a coffee.

The pair clearly have a lot to talk about. Google has been doubling down in social-networking while Facebook has been beefing up on search. Facebook has been hiring a growing number of Googlers while Google has been hunting for a new head of social. The battle between the companies is likely to be on the minds of attendees all week.

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At a roundtable event this morning at The Paley Center for Media, Sirius (SIRI) CEO Mel Karmazin was asked that very question. Does he worry about Stern leaving for an outfit–like Pandora–looking to avail itself of the same “Stern Effect” that spiked Sirius’s subscriber rolls?

Karmazin acknowledged that while it’s a possibility, he’s dubious. “I think it’s great to be content today,” he said. “In this world of fragmentation, great content prevails. Howard Stern is great content. Howard would be sought after by anyone. He’s a great talent. Having said that, we would like him to stay with us and we are optimistic that he will continue to do so.”

It’s worth noting that Karmazin, while he does view Internet radio as a competitor, doesn’t seem too worried by it. “There are a lot of choices for audio content,” he remarked. “And obviously, the Internet is one of them. But the question is who’s going to the the largest player? And I think that’s our spot to lose. I believe we will be the most profitable of audio content choices.”

Further Notes From the Event

On Amazon’s Kindle:
I am addicted to my Kindle. I saw Jeff Bezos in Sun Valley recently [and] I told him I have personally bought a dozen to give as gifts.

On Comcast/NBC Universal:
I dont’ see anything anticompetitive about what Comcast is doing–the review should take a few weeks. Either you accept the fact that there’s a lot of competition out there, or you don’t….But I do think this thing is going to drag out like it did for us. So far there are only two congressional hearings on Comcast/NBC. We had four–there were fewer for the Exxon Valdez.

On In-Car Internet and the Apple iPod:
I think the Internet will absolutely be in the car and we think it will be a good competitor. You know we’ve been competing with iPods for a long time. And we look at how sat radio performs in the vehicles where people have the ability to put an iPod jack in and we don’t see much of a difference. We believe them to be complementary.

Google CEO Eric Schmidt did one of his patented throat-clearers in an opinion piece in The Wall Street Journal today and it pretty much begs for translation.

Well, BoomTown shall not tarry from the task of decoding the extra-long rumination from the head of Google (GOOG), who was responding to the recent spate of aggressive attacks by traditional media publishers.

They have blamed the search giant for everything from their current business woes to the destruction of journalism to Tiger Woods’s dicey marital troubles.

Okay, not that! But the rest for sure.

First and foremost among the attackers has been Rupert Murdoch, CEO and ruler-of-all-he-surveys at News Corp. (NWS), which owns The Wall Street Journal and this Web site.

How ironic, yet still typically cozy from a corporate bigwig point of view! I call you a cur in public, but please use my newspaper so that I can get some decent traffic from this wrestling match.

But all is not what it seems in the Schmidt piece, of course, so here’s the translation:

What Schmidt wrote: How Google Can Help Newspapers

By ERIC SCHMIDT

Translation: We come in peace, always. You know, like the freakily calm lady from “V,” who is really a lizard under all that pretty and is actually secretly trying to decide between grilling and broiling all you whiny news people.

Also, you can address me in the future as Emperor Palpatine.

What Schmidt wrote: It’s the year 2015. The compact device in my hand delivers me the world, one news story at a time. I flip through my favorite papers and magazines, the images as crisp as in print, without a maddening wait for each page to load.

Some of these stories are part of a monthly subscription package. Some, where the free preview sucks me in, cost a few pennies billed to my account. Others are available at no charge, paid for by advertising. But these ads are not static pitches for products I’d never use. Like the news I am reading, the ads are tailored just for me. Advertisers are willing to shell out a lot of money for this targeting.

Translation: It’s the year 2015 in the United States of Google, where the new country colors are a festive green, blue, red and yellow.

As per the new Declaration of Googlependence, besides the tracking chip in your thighs, every citizen will be outfitted with a tablet running Chrome and looking suspiciously like a large iPhone, except that Apple (AAPL) was outlawed in the Fanboy Purge of 2010.

Every day, citizens will receive news specially aimed at them, such as “The Health Benefits of Sergey Worship.” Ads will also be tailored to citizens’ likes and dislikes, such as a pitch for Googley deodorant with the motto: “Search me, because I smell nice!”

Costs will be billed to your accounts at the National Bank of Google.

What Schmidt wrote: This is a long way from where we are today. The current technology–in this case the distinguished newspaper you are now reading–may be relatively old, but it is a model of simplicity and speed compared with the online news experience today. I can flip through pages much faster in the physical edition of the Journal than I can on the Web. And every time I return to a site, I am treated as a stranger.

So when I think about the current crisis in the print industry, this is where I begin–a traditional technology struggling to adapt to a new, disruptive world. It is a familiar story: It was the arrival of radio and television that started the decline of newspaper circulation. Afternoon newspapers were the first casualties. Then the advent of 24-hour news transformed what was in the morning papers literally into old news.

Translation: [Rachel: Please insert usual pap boilerplate here damning the newspaper business with faint praise. History of how change hurts, but is inevitable...blah, blah, blah. Please make sure to deliver a few digs too, like how--unlike Google--newspapers have no idea what their readers did last summer. Like we do. Cue evil Mwahahahaha laugh here.]

What Schmidt wrote: Now the Internet has broken down the entire news package with articles read individually, reached from a blog or search engine, and abandoned if there is no good reason to hang around once the story is finished. It’s what we have come to call internally the atomic unit of consumption.

Translation: “Atomic unit of consumption” is one of those terms we don’t expect you small-brained people to even begin to understand. Although you use only eight percent of your mental capacity, we here at Google use an average of 71 percent, tracking on our search share.

What Schmidt wrote: Painful as this is to newspapers and magazines, the pressures on their ad revenue from the Internet is causing even greater damage. The choice facing advertisers targeting consumers in San Francisco was once between an ad in the Chronicle or Examiner. Then came Craigslist, making it possible to get local classifieds for free, followed by Ebay and specialist Web sites. Now search engines like Google connect advertisers directly with consumers looking for what they sell.

Translation: I also don’t expect you Luddites will get this, but all your base are belong to us.

For those who need an older cultural reference, it is like the end of “Butch Cassidy and the Sundance Kid.” Um, as much as you Hollywood types like a happy ending, Butch and the Kid did not make it.

What Schmidt wrote: With dwindling revenue and diminished resources, frustrated newspaper executives are looking for someone to blame. Much of their anger is currently directed at Google, whom many executives view as getting all the benefit from the business relationship without giving much in return. The facts, I believe, suggest otherwise.

Google is a great source of promotion. We send online news publishers a billion clicks a month from Google News and more than three billion extra visits from our other services, such as Web Search and iGoogle. That is 100,000 opportunities a minute to win loyal readers and generate revenue–for free. In terms of copyright, another bone of contention, we only show a headline and a couple of lines from each story. If readers want to read on they have to click through to the newspaper’s Web site. (The exception are stories we host through a licensing agreement with news services.) And if they wish, publishers can remove their content from our search index, or from Google News.

Translation: Shut your overstuffed pie holes, you grumbling antiques. You were dying by the cell long before our superior technology arrived to save the day and help you out of your sorry mess.

Plus, we toss you all that traffic and you still manage to fumble our perfect pass like the pikers you are. (In truth, you are Charlie Brown and we are Lucy.)

Also, have you ever heard of “fair use”? It’s the law now and we can hire more lobbyists in Washington, D.C., than you with the bazillions and gamillions of dollars we make from all those tiny little blue links.

You do realize I have a key to the the White House and visit more times than Joe Biden?

What Eric wrote: The claim that we’re making big profits on the back of newspapers also misrepresents the reality. In search, we make our money primarily from advertisements for products. Someone types in digital camera and gets ads for digital cameras. A typical news search–for Afghanistan, say–may generate few if any ads. The revenue generated from the ads shown alongside news search queries is a tiny fraction of our search revenue.

Translation: Here’s an easy formula for you to grok: Michael Jackson+the pretty boy from “Twilight”+digital cameras=Big bucks for Google! Some thumbsucker you did on Afghanistan, however worthy and important for our nation’s future=14 cent CPM, but only if a drunken Lindsay Lohan story is in close proximity.

What Schmidt wrote: It’s understandable to look to find someone else to blame. But as Rupert Murdoch has said, it is complacency caused by past monopolies, not technology, that has been the real threat to the news industry.

Translation: [Rachel: Please insert Rupe quote that actually hangs him here.]

What Schmidt wrote: We recognize, however, that a crisis for news-gathering is not just a crisis for the newspaper industry. The flow of accurate information, diverse views and proper analysis is critical for a functioning democracy. We also acknowledge that it has been difficult for newspapers to make money from their online content. But just as there is no single cause of the industry’s current problems, there is no single solution. We want to work with publishers to help them build bigger audiences, better engage readers, and make more money.

Meeting that challenge will mean using technology to develop new ways to reach readers and keep them engaged for longer, as well as new ways to raise revenue combining free and paid access. I believe it also requires a change of tone in the debate, a recognition that we all have to work together to fulfill the promise of journalism in the digital age.

Translation: Really–we’re from Google and we’re here to help! Mwahahahahaha.

Seriously, you guys, please go back to demonizing Microsoft (MSFT) or those banker salaries or the health care bill.

While my gabillions of dollars are more than protecting me from the blows you are trying to land, I am not liking the hairy eyeballs I got at the Allen & Co. conference at Sun Valley last summer. I think Washington Post head Don Graham even short-sheeted my 600-thread count Frette bedding there.

What Schmidt wrote: Google is serious about playing its part. We are already testing, with more than three dozen major partners from the news industry, a service called Google Fast Flip. The theory–which seems to work in practice–is that if we make it easier to read articles, people will read more of them. Our news partners will receive the majority of the revenue generated by the display ads shown beside stories.

Translation: [Rachel: Please insert some kooky-named Google 20 percent project we have no intention of really going large on here, so they think we really are working on something to save them. Those media folks like Hail Mary tech solutions, even if they don't even know how to turn them on.]

What Schmidt wrote: Nor is there a choice, as some newspapers seem to think, between charging for access to their online content or keeping links to their articles in Google News and Google Search. They can do both.

Translation: You de-indexin’ me? You de-indexin’ me? You de-indexin’ me? Then who the hell else are you de-indexin’? You de-indexin’ me? Well I’m the only one here. Who the %*#! do you think you’re de-indexin’?”

What Schmidt wrote: This is a start. But together we can go much further toward that fantasy news gadget I outlined at the start. The acceleration in mobile phone sophistication and ownership offers tremendous potential. As more of these phones become connected to the Internet, they are becoming reading devices, delivering stories, business reviews and ads. These phones know where you are and can provide geographically relevant information. There will be more news, more comment, more opportunities for debate in the future, not less.

The best newspapers have always held up a mirror to their communities. Now they can offer a digital place for their readers to congregate and talk. And just as we have seen different models of payment for TV as choice has increased and new providers have become involved, I believe we will see the same with news. We could easily see free access for mass-market content funded from advertising alongside the equivalent of subscription and pay-for-view for material with a niche readership.

Translation: Smartphones are the answer! Sure! Your aging demo loves reading teeny-weeny writing on a device they want to throw against a wall.

Or maybe you can be like HBO! Except you’ll need more borderline porn and Mafia guys.

What Schmidt wrote: I certainly don’t believe that the Internet will mean the death of news. Through innovation and technology, it can endure with newfound profitability and vitality. Video didn’t kill the radio star. It created a whole new additional industry.

Translation: A census taker once tried to test me. I ate his liver with some fava beans and a nice chianti.

Most important to remember here is that regulators will be hemming and hawing over this combination for many many months, so the actual transaction won’t take place until late 2010 or beyond. And by that time, it’s certainly possible that some of the terms announced today will have changed, as Comcast seeks to mollify politicians who are worried–are at least say they’re worried–about the company’s clout.

Comcast (CMCSA) has already announced (via this Bloomberg story) that it doesn’t intend to shed any assets to please Washington. But what else would it say? One likely scenario, according to cable executives I talked to this week, is that the company will end up selling some of its cable systems to the handful of small cable operators that are still around.

In any case, completists can find the press release at the bottom of this post, but if you’re in a hurry I’d suggest this overview of the overviews from PaidContent, which includes nuggets like the following:

• Comcast started the year by mulling deals to buy Facebook or Viacom (VIA).
• GE (GE) and Comcast first broached the deal in Sun Valley media schmooze in July, and agreed on the deal points by the end of that month.
• News Corp.’s (NWS) Rupert Murdoch, who kept insisting that he wasn’t interested in inserting himself into the deal, kept at it through late October.

COMCAST AND GE TO CREATE LEADING ENTERTAINMENT COMPANY
Positions Comcast and NBCU to Lead the Next Phase of Media Industry’s Evolution
Builds on Diverse Cable Portfolio, Accelerates Digital Offerings and Expands Customer Choice
Entity Will Deliver Strong Cash Flow With Conservative Capital Structure
NBCU Businesses Valued at $30 Billion, Comcast to Contribute Businesses Valued at $7.25 Billion
Comcast To Own 51%, GE 49% Interest in NBCU
Jeff Zucker to Lead New York-based Venture

PHILADELPHIA, PA and FAIRFIELD, CT — Dec. 3, 2009 — Comcast (NASDAQ: CMCSA, CMCSK) and General Electric (NYSE: GE) announced today that they have signed a definitive agreement to form a joint venture that will be 51 percent owned by Comcast, 49 percent owned by GE and managed by Comcast. The joint venture, which will consist of the NBC Universal (NBCU) businesses and Comcast’s cable networks, regional sports networks and certain digital properties and certain unconsolidated investments, will be well positioned to compete in an increasingly dynamic and competitive media and digital environment.

The combination of assets creates a leading media and entertainment company with the proven capability to provide some of the world’s most popular entertainment, news and sports content, movies and film libraries to consumers anytime, anywhere. The joint venture will provide consumers the broadest possible access to content, and support high-quality, award-winning content development across all platforms including film, television, and online. It will be anchored by an outstanding portfolio of cable networks and regional sports networks that will account for about 80 percent of its cash flow, including USA, Bravo, Syfy, E!, Versus, CNBC and MSNBC. The joint venture will be financially strong with a robust cash-flow-generation capability.

Under the terms of the transaction, GE will contribute to the joint venture NBCU’s businesses valued at $30 billion, including its cable networks, filmed entertainment, televised entertainment, theme parks, and unconsolidated investments, subject to $9.1 billion in debt to third party lenders. Comcast will contribute its cable networks including E!, Versus and the Golf Channel, its ten regional sports networks, and certain digital media properties, collectively valued at $7.25 billion, and make a payment to GE of approximately $6.5 billion of cash subject to certain adjustments based on various events between signing and closing.

Comcast Chairman and Chief Executive Officer Brian Roberts said, “This deal is a perfect fit for Comcast and will allow us to become a leader in the development and distribution of multiplatform ‘anytime, anywhere’ media that American consumers are demanding. In particular, NBCU’s fast-growing, highly profitable cable networks are a great complement to our industry-leading distribution business. Today’s announced transaction will increase our capabilities in content and cable networks. At the same time, it will enhance consumer choice and accelerate the development of new digital products and services. GE has provided NBCU with a great home and has dramatically and positively transformed the business. We are honored that under this agreement Comcast would take over the stewardship of this important collection of assets and are absolutely committed to investing in NBCU and ensuring that it is a vibrant, financially strong company able to thrive in a rapidly evolving marketplace by delivering innovative programming. We are particularly pleased to be creating this new joint venture with GE and Jeff Immelt and to have their continued involvement.

“For Comcast, this transaction is strategically compelling and will generate attractive financial returns and build shareholder value,” continued Roberts. “It is also expected to be immediately accretive and will also allow us to maintain our strong commitment to returning capital to shareholders– all while increasing the scale, capabilities and value of our cable distribution, content and digital assets. Significantly, it is entirely consistent with our intense focus on value creation and our disciplined strategy of pursuing profitable growth in areas complementary to our distribution business.”

GE Chairman and CEO Jeff Immelt said, “The combination of Comcast’s cable and regional sports networks and digital media properties and NBCU will deliver strong returns for GE shareholders and business partners. NBCU has been a great business for GE over the past two decades. We have generated an average annual return of 11 percent, while expanding into cable, movies, parks and international media. We are reducing our ownership stake from 80 percent to 49 percent of a more valuable entity. By doing so, GE gets a good value for NBCU. This transaction will generate approximately $8 billion of cash at closing with an expected small after-tax gain. We have many opportunities to invest in our high-technology infrastructure businesses at attractive returns. I believe that the new NBCU will deliver value for both Comcast and GE in the future. We will give consumers and advertisers more choice and our cable and digital assets will be second to none. I am confident Brian Roberts and his team at Comcast will be great partners.”

Comcast also announced the creation of Comcast Entertainment Group (CEG), which will house Comcast’s interest in the joint venture and will stand alongside Comcast Cable, which operates the company’s traditional cable business.

Comcast Chief Operating Officer Steve Burke said, “Both Comcast and NBCU have excellent track records of integrating and growing multi-billion dollar businesses, including significant content acquisitions. In addition, we have both developed some of the country’s most popular programming and built many of the most watched and valued networks in the industry. We are confident that we’ll be even stronger together, and look forward to working with Jeff Zucker and the NBCU team to deliver the best consumer experience.”

Jeff Zucker, current president and CEO of NBCU, will be CEO of the new joint venture and will report to Burke. Zucker said, “Combining the assets of NBCU, ranging from our suite of cable properties and two broadcast networks to a legendary film studio and global theme park business, with the content assets and resources of Comcast, will enable us to continue to thrive in an ever-changing media landscape. Consumers of all of our products–on screens large and small–will have the benefit of enhanced content and experiences, delivered to them in new and better ways as a result of this transaction. This marks the start of a new era for NBCU, and I’m genuinely excited that I will be leading this wonderful organization, along with the Comcast team, at this important time in our history.”

Headquarters for the business will remain in New York. The joint venture board will have three directors nominated by Comcast and two nominated by GE.

Key Elements Of The Transaction:

·         NBCU will borrow approximately $9.1 billion from third-party lenders and distribute the cash to GE.

·         NBCU, valued at $30 billion, will be contributed to the newly formed joint venture. Comcast will contribute its programming businesses and certain other properties valued at $7.25 billion.

·         GE will acquire Vivendi’s 20% interest in NBCU for $5.8 billion. GE will purchase approximately 38% of Vivendi’s interest (or approximately 7.66% of all outstanding NBCU shares) from Vivendi for $2 billion in September 2010, if the Comcast transaction is not closed by then. GE will acquire the remaining 62% of Vivendi’s interest (or approximately 12.34% of all outstanding NBCU shares) for $3.8 billion when the transaction closes.

·         Comcast will make a payment to GE of approximately $6.5 billion in cash subject to certain adjustments based on various events between signing and closing.

·         The new venture will be 51% owned by Comcast and 49% owned by GE.

·         GE expects to realize $9.8 billion pre-tax in cash before debt reduction and transaction fees and after buyout of the Vivendi stake. GE expects to realize approximately $8 billion in cash after paying down the existing NBCU debt and transaction fees.

·         GE will be entitled to elect to cause the joint venture to redeem one-half of its interest at year 3 ½ and its remaining interest at year 7. The joint venture’s obligations to complete those purchases will be subject to the venture’s leverage ratio not exceeding 2.75X EBITDA and the venture continuing to hold investment-grade ratings. Comcast also has certain rights to purchase GE’s interest in the venture at specified times. All such transactions would be done at a 20% premium to public market value with 50% sharing of upside above the closing valuation.

·         To the extent the joint venture is not required to meet GE’s redemption requests, Comcast will provide a backstop up to a maximum of $2.875 billion for the first redemption and a total backstop of $5.750 billion.

The transaction has been approved by the Board of Directors of GE and Comcast. It is subject to receipt of various regulatory approvals, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act, and approvals of the Federal Communications Commission and certain international agencies. The transaction is also subject to other customary closing conditions. NBCU has obtained $9.85 billion of committed financing through a consortium of banks led by J.P. Morgan, Goldman Sachs, Morgan Stanley, BofA Merrill Lynch and Citi. This financing is expected to receive solid investment-grade ratings from S&P and Moody’s.

Comcast and GE intend to submit regulatory applications supporting the pro-competitive and strong public interest benefits of the transaction, including how the joint venture will better meet the entertainment, communications and information needs of the American public.

“We are prepared to make affirmative commitments to ensure that the pro-consumer and public interest benefits of the transaction are realized,” Roberts said. “Today, we have announced a number of initial commitments that expand on the capabilities that Comcast and NBCU have built over the years, and the new opportunities that this combination makes possible. These commitments address the needs of various audiences and stakeholders, and we will provide additional details on these and other commitments in our public interest filing with the Federal Communications Commission.”

Advisors
Morgan Stanley is lead financial advisor to Comcast with UBS and BofA Merrill Lynch acting as co-advisors. Davis Polk & Wardwell LLP is Comcast’s legal advisor. J.P. Morgan is lead financial advisor to GE with Goldman Sachs and Citi acting as co-advisors. Weil, Gotshal & Manges LLP is GE’s and NBCU’s legal advisor.

Teleconference and Webcast
Comcast will host a conference call with the financial community today, December 3, 2009, at 8:30 a.m. Eastern Time (ET) to discuss this morning’s announcement with Comcast Chairman and CEO Brian L. Roberts, Comcast Chief Operating Officer Stephen B. Burke and Comcast Chief Financial Officer, Michael J. Angelakis. The conference call will be broadcast live via the Company’s Investor Relations website at www.cmcsa.com or www.cmcsk.com. Those parties interested in participating via telephone should dial (800) 263- 8495 with the conference ID number 44380493. A telephone replay of the call will be available on the Investor Relations website starting at 12:30 p.m. Eastern Time on December 3, 2009 and will be available until December 8, 2009 at midnight Eastern Time. To access the rebroadcast, please dial (800) 642-1687 conference ID 44380493.

GE will also host a webcast with the financial community today, December 3, 2009, at 8:30 a.m. Eastern Time / 7:30 a.m. Central Time to discuss this morning’s announcement with GE Chairman and CEO Jeff Immelt, GE Chief Financial Officer Keith Sherin and NBCU President and CEO Jeff Zucker. The webcast will be available at www.ge.com/investors. A replay will be available later in the day on the site.

Additional media materials are available at www.ge.com/newnbcu, www.comcast.com/nbcutransaction and https://www.nbcumv.com/mv/.

The description of this transaction included in this press release is qualified in its entirety by, and is subject to, the terms of the definitive documentation for the transaction to be filed by Comcast with the Securities and Exchange Commission on a Current Report on Form 8-K.

About GE
GE (NYSE: GE) is a diversified infrastructure, finance and media company taking on the world’s toughest challenges. From aircraft engines and power generation to financial services, medical imaging, and television programming, GE operates in more than 100 countries and employs about 300,000 people worldwide. For more information, visit the company’s Web site at www.ge.com.

About Comcast Corporation
Comcast Corporation (Nasdaq: CMCSA, CMCSK) (www.comcast.com) is one of the nation’s leading providers of entertainment, information and communication products and services. With 23.8 million cable customers, 15.7 million high-speed Internet customers, and 7.4 million Comcast Digital Voice customers, Comcast is principally involved in the development, management and operation of cable systems and in the delivery of programming content.

Comcast’s content networks and investments include E! Entertainment Television, Style Network, Golf Channel, VERSUS, G4, PBS KIDS Sprout, TV One, ten sports networks operated by Comcast Sports Group and Comcast Interactive Media, which develops and operates Comcast’s Internet businesses, including Comcast.net (www.comcast.net). Comcast also has a majority ownership in Comcast-Spectacor, whose major holdings include the Philadelphia Flyers NHL hockey team, the Philadelphia 76ers NBA basketball team and two large multipurpose arenas in Philadelphia.

About NBC Universal:
NBC Universal is one of the world’s leading media and entertainment companies in the development, production, and marketing of entertainment, news, and information to a global audience. NBC Universal owns and operates a valuable portfolio of news and entertainment networks, a premier motion picture company, significant television production operations, a leading television stations group, and world-renowned theme parks. NBC Universal is 80% owned by General Electric and 20% owned by Vivendi.
Combined Assets/Properties

The assets and properties owned or controlled by the new joint venture will include some of the best known brands in the entertainment industry, including:

• Several of television’s most successful cable networks, including USA, Bravo, CNBC, MSNBC, Syfy, E!, Style, Versus and the Golf Channel;
• One of the nation’s largest television groups, including:
• The NBC Television Network;
• Local broadcast TV stations in ten top U.S. markets including New York, Los Angeles, Chicago and Philadelphia;
• The national Telemundo Network and 16 Telemundo O&O stations in locations such as Los Angeles, New York, Miami, Houston, Chicago and Dallas/Ft.Worth;
• Preeminent television production operations that produce Emmy Award winning programs like The Office, 30 Rock, Law & Order, Heroes, Saturday Night Live and The Tonight Show, as well as syndicate operations through NBC Universal Domestic and International Distribution and a 3,000-title library of television episodes;
• NBC News, the leading source of global news and information in the United States with top-rated programs such as Nightly News with Brian Williams, Today and Meet the Press;
• A robust sports programming lineup featuring the Olympics (through 2012), NBC Sunday Night Football, NHL/Stanley Cup, PGA Tour, US Open, Ryder Cup, Wimbledon and the Kentucky Derby, Versus, Golf Channel and Comcast’s 10 regional sports networks;
• Universal Pictures, which has produced Academy Award winners Atonement, The Bourne Ultimatum, Brokeback Mountain, Ray and A Beautiful Mind, Focus Features, which recently produced Away We Go, and an extensive movie library with more than 4,000 titles through Universal Studios Home Entertainment;
• Fast growing digital media properties including CNBC.com, iVillage, NBC.com, Fandango, and Daily Candy, which together generate more than 40 million unique users each month;
• Ownership of theme parks in Florida (50% interest), California (100% interest) and a financial interest in a theme park in Japan;
• A minority interest in A&E, Biography, The History Channel, The Weather Channel, Lifetime and Hulu.com.

In a post from co-founder Biz Stone, the company counsels users that, with the exception of a single account, none of their personal information seems to have been exposed as a result of the hack. But before establishing that, Stone goes out of his way to explain that Twitter’s security problems are Twitter’s security problems, not cloud computing’s security problems or Google’s (GOOG) security problems.

This attack had nothing to do with any vulnerability in Google Apps which we continue to use. This is more about Twitter being in enough of a spotlight that folks who work here can become targets. In fact, around the same time, Evan’s wife’s personal email was hacked and from there, the hacker was able to gain access to some of Evan’s personal accounts such as Amazon and PayPal but not email. This isn’t about any flaw in web apps, it speaks to the importance of following good personal security guidelines such as choosing strong passwords.

That last line seems directed at the likes of analysts like yours truly, who suggested this morning that the hack would raise concerns about the security of services that place work data on shared servers accessed via the Web. (Though the Twitter guys did seem to like my underwear-drawer metaphor. Cool!)

Stone then goes on to rattle a sword, gently but pointedly, at Web sites that have published stuff pilfered by the hacker.

We are in touch with our legal counsel about what this theft means for Twitter, the hacker, and anyone who accepts and subsequently shares or publishes these stolen documents. We’re not sure yet exactly what the implications are for folks who choose to get involved at this point but when we learn more and are able to share more, we will.

Note that while it’s easy enough to find this stuff on the Web, only a handful of mainstream Web sites, including TechCrunch, Gawker and Silicon Alley Insider, have published it, and most of what they have published is banal. I’ve asked all three sites for a response to Twitter’s response.

In the meantime, TechCrunch’s Mike Arrington, who has promised to publish more, announces in a new post that he is in the midst of “negotiations” with Twitter’s lawyers about his plans. Happy to hear from a First Amendment specialist, but I don’t think Twitter has a case against Web publishers here; the issue is an ethical one, not a legal one.

UPDATE: Here’s Gawker Editor-in-Chief Gabriel Snyder’s “bring it on” retort:

It’s hilarious to see Twitter, which has become a conduit for real-time, unauthorized information from places like the New York Times’ internal meetings, now get prissy about corporate privacy. Ev Williams seems to have learned a lot about the mores of the institutional elite during his stay in Sun Valley. As for Twitter coming after us for publishing the docs, the only thing I’m upset about is that the leaker didn’t come to us with them first.

Mr. Gates and his former lieutenant Nathan Myhrvold were walking out of the morning session when two reporters, including this one, asked Mr. Gates for a comment on the new Google operating system.

Read the rest of this post on the original site

Erin Burnett of CNBC opened the conference by moderating a discussion between investor Wilbur Ross, MIT professor Simon Johnson and American Express (AXP) CEO Kenneth Chenault.

The prognosis for the economy from the experts was bearish, according to members of the audience. “It was interesting but gloomy,” said Ken Auletta, the New Yorker writer who attended the meeting, closed to press.

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And for the last several years, the New York Times (NYT) has provided excellent on-the-ground coverage, usually via Dealbook’s Andrew Ross Sorkin.

Not this year.

Reporters and media chieftains alike started arriving at the Idaho resort last night, but the Times is AWOL. If you want first-hand reportage on who said what outside the bar or by the duck pond, you’re going to have to rely on other news outlets.

Sorkin explained his absence via email to me:

For better or worse, I couldn’t make it out to Sun Valley this year because I’m chained to my desk for the next couple of weeks trying to finish my upcoming book, “Too Big to Fail.”

Given the market jitters–and resulting deal drought–we made the decision to cover the event from afar this year. I’m trying to stay up to date on the latest machinations out there by speaking with a half dozen of the invitees daily by phone and email–some of whom have already tapped out notes by Blackberry from inside this morning. (We actually might have a pretty interesting Sun Vally story up on DealBook in the next 24 hours.) We’re also running a series of Twitter feeds from other news organizations on DealBook’s homepage. And we plan to run several Sun Valley photo slide shows, as we’ve done in year’s past.

In truth, it’s debatable whether any news outlet has to be at Sun Valley: Some of the moguls use the opportunity to hold briefings with the press there. Google’s Eric Schmidt (GOOG) has been particularly talkative in years past. But anything truly important generally happens away from the scribes and usually comes to light well after the fact, so you could argue that real-time coverage is overrated.

On the other hand, last year Rupert Murdoch, who owns this Web site, enlisted the help of the press corps to help him find his wedding ring after an evening at the bar. That was a pretty great story.

And in any case, there are still plenty of other outlets on the ground. Among them: The Financial Times, Reuters, Bloomberg, the Los Angeles Times, CNBC, the New York Post, and our colleague Julia Angwin from The Wall Street Journal.

A quick perusal of Google News will keep you up to date, and if you want second-by-second stuff, there’s a Twitter stream, of course. And sure enough, Sorkin’s Dealbook has a nifty widget that lets you toggle between different Twitter feeds. It’s worth checking out.