Discover Vivendi: France’s Media Giant

Vivendi SE is a French mass-media holding company with its headquarters in Paris. It owns famous video games developer Gameloft, French TV channel Groupe Canal+, PR company Havas, Prisma Media, Vivendi Village, and Dailymotion, and is a majority owner of the Lagardère Group. Vivendi is owned by French billionaire Vincent Bolloré who is known as the “French Murdoch.” He has also been a financial backer for Marine Le Pen’s French far-right party National Rally.

Vivendi Universal was created in 2000 after Groupe Canal+ and Seagram Company Ltd (owner of Universal Studios) merged. After selling several of Universal’s segments, it was renamed Vivendi in 2006.

In 2021, Vivendi’s chairman and Vincent Bolloré’s son, Yannick Bolloré, became CEO of Havas, a company that was split from Vivendi in 2000 but is now a subsidiary. In 2021, Universal Music Group became a separate business.

Vivendi break-up plans

Earlier in December 2023, the Financial Times reported that Vincent Bolloré was planning to split his media conglomerate, Vivendi, into three separate businesses. This decision was welcomed by investors and helped push Vivendi’s share price up by 10%. The split is expected to unlock substantial value, estimated at around €8 billion.

Vivendi, under the leadership of Yannick Bolloré has struggled to reduce the trading discount of its assets, which analysts estimate at about 40%, particularly since spinning off Universal Music Group (UMG) in 2021. The recent acquisition of Lagardère Group has provided Vivendi with the scope to explore this strategic split, potentially selling its 24% stake in Telecom Italia as part of this restructuring.

The breakup plan involves listing Canal+ and Havas as separate entities while maintaining the Bolloré family as a key shareholder. The third branch would become an investment company, housing Lagardère and other media and entertainment assets. Analysts believe this move will offer greater flexibility and potential for mergers, consolidations, and growth. The plan, which may take up to 18 months to finalise, marks a significant shift in Vivendi’s strategy, aiming to unlock value and drive future growth.

Vivendi’s Canal+ exploring listing on LSE

Media conglomerate Vivendi SE’s Canal+ is exploring a potential listing on the London Stock Exchange which is expected to boost the UK’s struggling capital markets.

The French company is working with BNP Paribas SA and other advisers on the spinoff of the broadcaster.

There are no final decisions on the timing or venue with listing venues such as Amsterdam still being considered. Shares of Vivendi surged as much as 6.3% reaching their highest level since June 2022 after Bloomberg reported the news.

Vivendi has clarified that the split will result in the creation of four listed units to gain better value from its assets and increase its share price. These standalone listings will include Canal+, Havas and Vivendi’s publishing arm. Vivendi’s most valuable business, Universal Music Group NV, was listed in 2021 in Amsterdam and the stock has risen 9% since then. Universal Music Group NV is now valued at about €50 billion ($54 billion), which is more than Vivendi’s €11 billion market value.

• What is Canal+?

Canal+ began as a French TV channel and soon grew to a studio that produces entertainment content and distributes third-party channels and platforms such as BeIN Sports, Netflix and Disney+. It has 26.4 million subscribers across 50 countries and its revenues increased 4.3% to €1.5 billion in the first quarter, accounting for about 36% of Vivendi’s total revenue.

• Why a listing in London?

London is a more desirable listing destination for Canal+ as the broadcaster is expanding into new international markets. Canal+ has investments in Swedish player Viaplay Group AB and Hong Kong-based streamer Viu, with a target audience in Asia and the Middle East. It plans to acquire South Africa’s MultiChoice Group Ltd. which is the biggest pay-TV company in South Africa. The majority of Canal+ viewers would come from overseas and not so much France after it takes over MultiChoice. As part of the deal to buy MultiChoice, Vivendi has committed to a secondary listing in South Africa for Canal+.

A listing for Canal+ in London or Amsterdam will open the door to international capital which will be more advantageous than Euronext in Paris where Vivendi is currently listed.

For London, this spells great news after years of no initial public offerings and losing major names like chip designer Arm Holdings Plc to New York, and listed firms such as CRH Plc. In an attempt to attract more issuers to London, the UK’s Financial Conduct Authority recently announced new rules for listings.

In the past couple of years, there has been a substantial slowdown in European initial public offerings but in 2024 there has been a noticeable recovery. Nonetheless, the biggest IPOs have taken place in other markets rather than London. Apart from Canal+, online fast-fashion giant Shein is also exploring a public listing in London.

When is the split going to take place?

Yannick Bolloré told the Financial Times that there were “no major obstacles right now” to the split. However, the final plans need to be submitted to the supervisory board in the next few months. There is still no clear outline of how the four brands will be split. Another unresolved matter is where Havas will be listed after the break-up.

Start trading stocks with IronFX

If you are interested in trading Vivendi stocks via CFDs or you just want to explore IronFX’s wide range of stocks, you can open a trading account with the leading broker. From superb trading conditions to advanced platforms and free education, IronFX is by your side to help you navigate the exciting world of the financial markets. With dedicated multilingual customer support and your very own personal account manager, you will always have the necessary support to trade with certainty and security.

Disclaimer: This information is not considered as investment advice or an investment recommendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced, or hyperlinked, in this communication.

Поделиться: