French media conglomerate Vivendi has announced it is “studying” a project to split up its various entities.
The company said since the distribution and listing of Universal Music Group in 2021, it had endured a “high conglomerate discount”, resulting in a valuation less than the sum of its constituent parts, which in turn had limited its ability to grow its subsidiaries.
It added that its TV arm Canal+ is currently experiencing strong growth in an international context marked by numerous investment opportunities.
“In order to fully unleash the development potential of all its activities, the management board of Vivendi proposed to the supervisory board – which gave its approval on the matter – to explore the feasibility of a project to split the company into several entities, each of which would be listed on the stock market,” said Vivendi.
The company added that Canal+ Group has experienced “significant growth” in recent years, reaching a subscriber base of over 25 million in nearly 50 countries.
Following the acquisitions of M7 and SPI, the company has taken strategic stakes in businesses such as Multichoice, VIU, and Viaplay, which Vivendi said demonstrated its ability to identify and seize promising opportunities across all its geographical areas.
“In light of these successes, Canal+ is well-positioned to capitalise on further consolidation opportunities on a global scale,” added Vivendi.
An update on the progress of the study, and its feasibility, will be provided in “due course”, it added.
