In a widely anticipated move, Barry Diller has resigned as co-chief executive of Vivendi Universal Entertainment and will turn his full attention to the USA Interactive business.
This development has raised speculation that Vivendi is planning to sell off its entertainment unit which includes film studios, theme parks and cable networks (see
Bidders Move On Vivendi For Entertainment Assets, Say Reports). Oil tycoon Marvin Davis has already tabled a €15 billion offer (see
Davis Makes New Offer For VUE) and Viacom is the latest corporation to be linked with a bid (see
Viacom Eyes Up VU Entertainment Division).
Diller who stays on as chief executive of USA Interactive has a 5% share in VUE but is happy to relinquish his seat on the board.
“Now that Vivendi Universal has begun a formal process in reviewing options for its entertainment assets, it is appropriate to step aside from any direct management responsibility,” he said in a statement on Wednesday.
As a result of a number of disposals, Vivendi’s debts have been cut to around £9 billion but further sales may prove necessary and the company recently posted the largest corporate loss in French history (see Vivendi Left Reeling By Staggering Losses).
