Potential Independence of Havas Could Propose Reorganization and Mergers: Rumors Circulate
Let's Chat About Vivendi's Shake-Up
Vivendi, the French media giant, is stirring things up with talk of selling off some of its subsidiaries, like Havas and Canal+ Group, as well as trimming down investments in entities like publisher Lagardère and Telecom Italia. Insider chatter suggests these moves could make these companies even more enticing to potential buyers, according to Adweek.
This selling spree comes on the heels of Vivendi partially offloading Universal Music Group (UMG) in 2020, when Tencent, a Chinese media company, nabbed a 10% stake. Since UMG's listing, Vivendi has experienced a substantial drop in valuation, dampening growth for its subsidiaries.
Green Square partner, Barry Dudley, stated, "In 2020, Havas was a mere 15% of Vivendi's revenues, with UMG and Canal+ dominating the numbers and hogging the spotlight."
Vivendi's shake-up goes beyond just potential sales, though. The company has already completed a spin-off project in 2024, which led to the listings of Havas, Canal+, and the Lagardère holding entity (now called Louis Hachette Group). Despite these entities' combined market value being lower than expected, Vivendi remains optimistic that this move will generate value.
Vivendi's Lagardère stake hasn't been up for grabs, as of late, but it has been offloading its Telecom Italia (TIM) stake. Recent figures show that Vivendi has reaped $684 million from TIM, part of its ambitious plan to streamline its portfolio and shed debt.
As Vivendi continues to reorganize its portfolio, focusing on core subsidiaries like UMG and Gameloft, it's not all smooth sailing. Legal and regulatory challenges, including an ongoing appeal to the French Supreme Court regarding Vivendi's control structure, could complicate matters.
In essence, Vivendi is shrewdly maneuvering its assets to create value and cut debt, all while potential storms loom on the horizon.
Buyers may find Canal+ Group, Havas, and Lagardère more attractive following Vivendi's plans to sell off subsidiaries. This strategic move comes after Vivendi partially sold Universal Music Group (UMG) to Tencent in 2020, a transaction that somehow dampened the growth of its subsidiaries, including UMG and Canal+. In 2024, Vivendi completed a spin-off project, leading to the listings of Havas, Canal+, and Louis Hachette Group, although the combined market value was lower than anticipated. Regardless, Vivendi remains optimistic that these moves will generate value for the company.
