Vivendi SE, a global media conglomerate, has announced plans to split off its business into four companies and list them on exchanges, aiming to unlock shareholder value. The company’s divisions include Canal+ Group, Havas, Vivendi’s interest in Lagardère with Prisma Media, and an Investment company. The reorganization is contingent upon approval from the Supervisory Board, employee consultation, creditor and regulatory approvals, and approval from Vivendi’s shareholders. It is expected to take 12 to 18 months to complete, during which time Vivendi will need to restructure debt and secure financing.
The decision to split off the companies comes as a response to Vivendi experiencing a significant conglomerate discount since Universal Music Group’s distribution and listing in 2021. This discount has led to a decrease in valuation and limited the company’s capacity to execute external growth initiatives for its subsidiaries. By splitting the company into various entities, Vivendi aims to unlock the full development potential of its activities. Each entity will be listed on the stock market, allowing them to pursue their strategic growth objectives independently.
Vivendi has received approval from the European Commission for its proposed merger with Lagardère group in June 2023, with commitments to sell 100% of Editis’ share capital and Gala magazine. The transaction with Lagardère group was completed in November 2023, following the sale of Editis’ share capital to International Media Invest and Gala magazine to Groupe Figaro. Vivendi will continue to be a listed company after the split, supporting its subsidiaries’ growth and managing investments.
Vivendi SE, founded in 1853 and headquartered in Paris, France, operates in the entertainment, media, and communication sectors across Europe, the U.S., Asia, and Africa. The company’s divisions include Canal+ Group, Lagardère, Havas, Prisma Media, Gameloft, Vivendi Village, New Initiatives, and Generosity and Solidarity. Vivendi had 72,958 employees as of December 31, 2023. Canal+ Group is a prominent European media establishment with 26.4 million subscribers in nearly 50 countries, while Havas is a leading international advertising and communications establishment.
The publishing and distribution operations of Vivendi will manage Lagardère and Prisma Media business, focusing on publishing books and magazine publishing, respectively. The Investment company will hold interests in a range of culture, media, and entertainment companies, both listed and unlisted. The split-off of these entities is expected to offer more growth opportunities for each company individually and unlock shareholder value for Vivendi. The company will move forward with consultations, approvals, and restructuring to complete the transaction in the next 12 to 18 months.
