In a strategic decision intended to revolutionize its structure and increase market value, Vivendi's board has approved a plan to divide the company into several entities. This decision follows the proposal made in December 2023 to split the business into four publicly traded companies, with the aim of maximizing the development potential of all businesses. The French media and entertainment giant indicated that, since Universal Music Group's distribution and listing operation in 2021, the company has suffered from a significant conglomerate discount, which has significantly reduced its valuation and limited capacity to carry out external growth operations for its subsidiaries.
The reorganization includes the separation of the Canal+ entertainment unit and the Havas communications division. In addition, Vivendi intends to establish a new entity that will bring together assets in the publishing and distribution sector, as well as an investment company that will own listed and unlisted financial stakes in the culture, media and entertainment sectors. “This project will have to demonstrate its added value for all stakeholders and will include an analysis of the tax consequences of the various contemplated operations,” Vivendi said. The company will provide further details on the split plan on March 7, when it presents its 2023 financial results. The move is seen as a bold step to unlock hidden value within the conglomerate and improve Vivendi's attractiveness to investors. in the eyes of investors, narrowing the valuation gap that has held back its growth and expansive ambitions in the global media and entertainment landscape.
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