Reports have emerged that US media giant Viacom is set to bid for some of the entertainment assets of Vivendi Universal, taking to six the number of parties that have expressed interest in the businesses.
Vivendi announced two months ago that it was prepared to listen to offers for its US entertainment division which comprises a music company, film studios, cable networks and theme parks (see
Party Is Over For Vivendi).
The Sci Fi Channel and USA Network are of particular value to Viacom, which already owns broadcast networks CBS and UPN and the cable channels MTV, VH1 and Nickelodeon. The chairman Sumner Redstone has already held preliminary talks with Vivendi which is looking to cut its debt burden (see Viacom Eyes Up VU Entertainment Division).
Vivendi has indicated that it is only willing to listen to offers for the whole entertainment unit but may be willing to compromise and Viacom could still join forces with another bidder and split the assets.
The other organisations who have declared an interest in the forthcoming auction are Liberty Media, MGM, General Electrics, a group led by oil billionaire Marvin Davis and a consortium fronted by former Universal chief Edgar Bronfman.
