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NEW YORK (Reuters) - A group of private equity players has joined a consortium formed by Edgar Bronfman Jr. to bid for the U.S. entertainment assets of Vivendi Universal, people familiar with the matter said on Thursday.

Bronfman, who lost a big portion of his family's Seagram distilling fortune betting on Vivendi Universal, has had talks with several potential investors and has recruited Boston-based private equity firm Thomas H. Lee to buy back the media and music empire his family once owned, the sources said.

One of the sources said Bronfman has also lined up private equity shop Blackstone to join the group, which includes a syndicate led by Wachovia Corp.

Bronfman joins several suitors interested in all or parts of the entertainment assets, which include cable TV networks, Universal Studios and theme parks. Other suitors include oilman Marvin Davis, Viacom Inc., Liberty Media Corp. and Metro-Goldwyn-Mayer.

Spokesmen for Bronfman and Thomas H. Lee had no comment. A spokesman for Blackstone was not immediately available.

Bronfman sold the Universal entertainment empire to Vivendi for $34 billion in stock three years ago, when the French company was transforming itself from a water utility to a global media and entertainment giant.

The deal subsequently cost Bronfman's family hundreds of millions of dollars as Vivendi's stock plummeted.

BRONFMAN ALSO EYES MUSIC, GAMES

With the additional funding, Bronfman hopes to have enough financing to make a bid for Vivendi's entertainment assets, as well as the music group, which has not yet been put up for sale.

Others may still join the consortium, possibly taking on some Vivendi debt, one of the sources said.

The New York Times reported on Thursday that Blackstone and Thomas H. Lee had joined Bronfman.

The group assembled so far has had due diligence meetings that will continue this week and next and is prepared to make a bid when Vivendi sets the timetable, the source said.

Vivendi's video and online games division has already drawn bidders and a deal, worth as much as $800 million, is expected to be completed as early as this summer. Bronfman would also be interested in the unit if it were made part of the U.S. entertainment assets, the source said.

Several suitors have emerged for all or pieces of Vivendi's entertainment group as the company sheds assets to pare debt. Oilman Davis, who is interested in all of the assets, has bid about $15 billion and offered to take on $5 billion of Vivendi debt.

MGM has also contacted various media players to join it for a bid, sources familiar with the situation said. MGM officials were not immediately available to comment.

Viacom and Liberty Media have said they are interested in Vivendi's cable networks, such as Sci-Fi and USA. A source close to Viacom said the company plans to pursue any bid it would make alone.