Although this is doesn't directly affect Blizzard, it does leave the door open for a quick sale of Blizzard which could prove disasterous.  We'll just have to wait and see.

LOS ANGELES (Reuters) - For over a year, Vivendi Universal employees in Hollywood have gone about business as usual while Vivendi fretted over their future, but now the lack of a clear outlook has some concerned about what is in store under a new owner, sources familiar with the situation said on Wednesday.

Paris-based Vivendi is in the final stages of a long and drawn-out auction of its U.S.-based media assets, collectively known as Vivendi Universal Entertainment, or VUE.

Those assets include Universal Studios film and television production division, the USA and Sci Fi cable TV networks, and Universal-branded theme parks around the world.

Vivendi's board of directors had been expected on Tuesday to pick one bidder with whom to negotiate a sale. Instead, the company said it would hold further talks with two groups, General Electric Co.'s NBC television network and investors led by Vivendi vice chairman Edgar Bronfman, Jr.

The move sent a collective sigh around the Universal lot, sources said.

"Enough, already," is how one Hollywood insider put it.

"The problem is, when deadlines are not met, people grow more and more concerned," said another source who asked to remain anonymous. "This kind of thing can have an eroding effect."

To be sure, several sources -- all of whom asked not to be identified -- said they remain confident in VUE president and chief operating officer Ron Meyer, and that for now there have been no defections due to the prolonged Vivendi auction.

All said they try to focus on their jobs, and not get too involved in day-to-day speculation on the auction. A Universal spokeswoman declined to comment.

STRONG BOX OFFICE, THEME PARK PERFORMANCES

Sources noted the film studio has surpassed its own record for summer movie ticket sales by hauling in over $670 million at domestic box offices, and one noted that despite a prolonged slowdown in travel, the Universal Studios theme park in Los Angeles remains a solid attraction.

"It's not as if they're going to dig up the park and build condos," he said.

But some are wondering if a purchase by NBC, which owns several cable TV networks including CNBC and Bravo, would mean job losses at Universal's TV group.

The Bronfman group is viewed as less of a threat to jobs because while it does include a few cable TV channels, it lacks the many redundancies that an NBC merger might bring about.

Sources added that Bronfman, who was chief executive officer of former Universal owner Seagram Co Ltd., would be welcomed back if his group is the eventual winner as he is viewed as a likable and skilled leader.

Meanwhile, sources familiar with the Vivendi auction said Vivendi continued aggressively pursuing talks with both the Bronfman group and NBC on Wednesday, but that they expected no decisions to be forthcoming.

"I wouldn't hold the presses," said one source familiar with the talks.

Vivendi Universal Chief Executive Jean-Rene Fourtou is said to be partial to an NBC bid because it offers greater synergies with the Universal operations and a chance over time to realize the $14 billion in value Vivendi thinks the assets are worth.

But the Bronfman bid is expected to yield Vivendi more upfront cash which Vivendi could use to help meet its debt reduction goals. Since Tuesday, sources familiar with the auction have said the Bronfman group has grown concerned that they were kept in the bidding to spur NBC to boost its offer.

"The Bronfman group thinks it has an attractive offer, and that Vivendi has had ample time to review it. They shouldn't expect Bronfman to wait around forever," said one source.

Spokesmen for both Bronfman and NBC declined to comment, and a Vivendi spokesman was not immediately available.