French media and telecoms giant Vivendi Universal has finally cut all ties with US internet group IAC/Interactive.

Barry Diller's IAC has agreed to sell its 5.4% stake in Paris-headquartered Vivendi to NBC Universal, which runs the television, theme parks and movie divisions owned by General Electric.

The deal, worth $3.4 billion (€2.75bn; £1.85bn), ends a litigious relationship between IAC and Vivendi. It also cements NBC's control of entertainment assets it acquired last year from the French group.

Vivendi has sold more than $27bn in assets to restore its fortunes, after being driven to the brink of collapse in 2002 by the frenzied dealmaking of former chairman and ceo Jean-Marie Messier.

The man responsible for its resurgence, chairman Jean-Rene Fourtou, steered Vivendi to a €754 million net profit in 2004 [WAMN: 14-Mar-05].

Data sourced from Wall Street Journal Online; additional content by WARC staff