Vivendi to Explore Split Into Three Businesses
Businesses would be around Canal+, Havas and an investment company
Vivendi VIVHY 10.33%increase; green up pointing triangle will examine a possible split into three businesses around Canal+, Havas and an investment company.
The French digital entertainment and communications company said its management board had proposed a study of the feasibility of a split into publicly-traded entities.
The company said it has “endured a significantly high conglomerate discount” since spinning off its Universal Music Group segment in 2021. A split would allow Vivendi to “fully unleash the development potential of all its activities,” the company said.
One business would be structured around the company’s film and TV producer, Groupe Canal+. The company said the Canal+ segment has a subscriber base of over 25 million people worldwide.
Another business would be structured around Havas, the advertising and communication firm, which Vivendi said had maintained a steady rate of acquisitions in recent years.
The third entity would be an investment company which includes a majority stake in the Lagardère group, a publishing and travel retail company.
Vivendi said a split would allow all three businesses to have the human resources and financial agility essential for development.