The struggling media group Vivendi Universal is considering spinning off its US entertainment business in a deal involving John Malone’s Liberty Media, according to press reports today.
The
Wall Street Journal claimed that Liberty is planning to merge its Starz and Encore cable networks and interest in the Discovery Channel’s parent with Vivendi’s American entertainment division, ahead of a spin-off.
Liberty already has a 4% stake in Vivendi Universal and Malone is a long-term ally of Barry Diller who heads up Vivendi’s US entertainment arm.
Vivendi recently announced first-half losses of E12.3 billion (see Record Losses Force Vivendi To Hawk Assets) and the company remains heavily in debt. However, chief executive Jean-René Fourtou has assured shareholders that the sale of US film and TV businesses is by no means imminent (see Vivendi Chief Attempts To Allay Debt Concerns).
