In late 2009 General Electric, Vivendi SA, and the cable television company Comcast entered into a complicated transaction to change the ownership of the television and production company NBC Universal. Prior to the transaction, GE owned 80 percent of NBC, and Vivendi owned a minority share of 20 percent. GE bought the 20 percent of NBC owned by Vivendi (giving GE the entire company), and then sold 51 percent of NBC to Comcast. Both purchases were paid for with cash.
REQUIRED:
Explain why GE and Comcast would enter into such a transaction, and describe how these exchanges would affect the balance sheet and statement of cash flows of GE.