Vivendi Universal, the indebted media giant, has confirmed that it is to sell its US entertainment assets in a bid to achieve financial stability.
The French-based corporation posted losses of €23.3 billion in 2002 (see
Vivendi Left Reeling By Staggering Losses), paying the penalty for the costly acquisition policy pursued by former chief executive, Jean Marie Messier.
Messier transformed Vivendi from an aspiring water company into a multi-faceted media conglomerate but overstretched and was forced out of office last year when the company’s debts became unsustainable (see Vivendi Launches Debt Relief Strategy).
Speaking at yesterday’s AGM, Messier’s successor Jean Marie Fourtou said that Vivendi was in an ‘untenable situation’ when he took over with asset disposals the only viable solution. He has since authorised a number of sales including Canal Plus Technologies, and the US publisher Houghton Mifflin (see Vivendi Completes Sale Of US Publisher).
Fourtou has now instructed US executives to provide potential buyers with particulars on the component parts of Vivendi Universal Entertainment (VUE). The division includes US film studios, cable channels and theme parks and has attracted the attention of oil tycoon Marvin Davis and Sumner Redstone’s Viacom Corporation (see Viacom Eyes Up VU Entertainment Division).
Vivendi may find it pertinent to offload its American assets in stages but there is a stumbling block in the shape of former VUE chief Barry Diller who has an outstanding legal claim if the sale goes through (see Davis Makes New Offer For VUE). The company has however confirmed the sale of Telepiù, the Italian pay-TV company, to News Corporation for €871 million (see Murdoch To Rule The Roost Over Italian Pay-TV Market).
