Viacom is considering a bid for the US entertainment assets of Vivendi Universal, according to reports today.
Vivendi remains heavily in debt and there has been widespread speculation that it is prepared to divest its American businesses which includes Universal Pictures and USA Cable (see
Bidders Move On Vivendi For Entertainment Assets, Say Reports).
Sumner Redstone, the chairman of Viacom, is understood to have met Vivendi’s chief executive Jean-René Fourtou to discuss a possible bid for the US entertainment businesses. This will put the corporation in direct competition with the oil billionaire Marvin Davis who has already tabled a €15 billion offer for the assets (see Davis Makes New Offer For VUE).
Other potential suitors include Liberty Media, Metro-Goldwyn-Mayer, News Corp and General Electric’s NBC but it is reported that Barry Diller, who heads up Vivendi’s US operations, is distancing himself from the bidding process and plans to step down in May.
