Diller bought out of Vivendi Universal

NEW YORK, June 8 (UPI) -- NBC Universal will pay $3.4 billion to Barry Diller, the U.S. head of IAC/Interactive Corp., for his 5.4 percent stake in Vivendi Universal Entertainment.

The cash-and-stock deal ends a tumultuous relationship between Vivendi, NBC and Diller and lets the former head of Paramount and Fox movie studios pursue his $1.96 billion acquisition of the Internet search engine Ask Jeeves.

The agreement also consolidates control of NBC Universal, 80 percent owned by General Electric and 20 percent owned by Vivendi Universal.

Further, Vivendi Universal has agreed to delay by a year the date when it can first opt to sell its stake in NBC Universal. It is also paying Diller's IAC $235 million in cash to opt out of a 17-year obligation to make yearly payments of $30 million.