Vivendi Universal may be able to put together a global cable and television production business, using the entertainment arm of the USA Networks media company, press reports are suggesting today.
Jean-Marie Messier, chairman of the French group Vivendi, is said to be in discussions with Barry Diller, his opposite number at USA Networks, about carving the business up to give Messier the cable and TV assets, whilst Diller takes the e-commerce divisions.
It is not clear whether the deal would be completed using cash payments or whether an asset swap would be implemented. Vivendi has recently pocketed $4 billion from the sale of its stake in BSkyB to Deutsche Bank and a further $9.3 billion is expected from other pending deals.
Analysts believe that the merger of USA Networks’ entertainment assets into Vivendi’s businesses makes strategic sense, offering an outlet for the latter’s film content.
