Vivendi moves forward with strategic split into three companies

Vivendi board approves transformative business split

In a bold move signaling the beginning of a major corporate transformation, Vivendi’s supervisory board has approved a plan to separate the conglomerate into three distinct entities. Led by Chairman Yannick Bolloré and CEO Arnaud de Puyfontaine, this strategic shift aims to address the company’s conglomerate discount and unlock hidden value within its subsidiaries. This decision, first unveiled in December 2023, will advance to a critical shareholder vote slated for December 9.

The new era of Vivendi: Breaking down the plan

The approved proposal foresees a reorganization that will see Vivendi’s major components operate independently. Key entities involved in this split include:

Canal+: The renowned pay-TV giant
Havas: A leading name in the advertising world
Louis Hachette Group: A prominent publishing firm

By spinning off these divisions, Vivendi hopes to enhance their market valuation and operational efficiency, mitigating the disadvantages that conglomerates often face when their combined value underperforms compared to individual assessments.

Details on the stock market listings

If the split receives majority approval from shareholders, expect to see the newly independent companies on stock exchanges by December 16, 2024.

Canal+ is set to list on the London Stock Exchange, providing it with a prestigious platform and increased visibility in global markets.
Havas will list as a Dutch public limited company on Euronext Amsterdam, aligning with its European strategy.
Louis Hachette Group will find its home on Euronext Growth in Paris, driving robust participation in the French publishing sector.

Vivendi itself will continue trading on Euronext Paris, refocusing its efforts on developing Gameloft and managing its diverse investment portfolio, which most notably includes Universal Music Group, a powerhouse in the entertainment industry.

Leadership reshuffle at Canal+

As part of the announcement, Vivendi has revealed the leadership team that will helm Canal+ post-split. The entertainment giant, known for its prominent subsidiary Studiocanal, producer of the beloved “Paddington” series, is set for robust leadership under familiar and new faces.

Yannick Bolloré and Maxime Saada will take the lead, ensuring continuity and strategic vision.
Jacques du Puy and Anna Marsh will serve as deputy CEOs, bringing valuable expertise and operational acumen to the table.
Arnaud de Puyfontaine will also serve on the board, ensuring strong oversight and governance.

A notable addition to the Canal+ board is Bob Bakish, the former CEO of Paramount, whose extensive experience in the entertainment industry signals a strategic boost for Canal+’s global ambitions.

Strategic implications and industry impact

The strategic split comes at a time when conglomerates face mounting pressure to streamline operations and focus on core capabilities. The decision underscores a broader industry trend where diversified groups are segmenting to enhance shareholder value and market performance. Analysts have positively received Vivendi’s move, seeing it as a necessary strategy to combat the conglomerate discount that often plagues diversified organizations.

Canal+ stands to benefit significantly from its London listing, expected to attract a broader array of investors and increase its competitive edge in the pay-TV and content production markets. Similarly, Havas will gain greater operational flexibility and financial agility, positioning it favorably within the rapidly evolving advertising landscape. Lastly, the Louis Hachette Group listing will provide it with the necessary capital and market orientation to compete vigorously in the international publishing domain.

Insights from the leadership

During the announcement, Chairman Yannick Bolloré expressed confidence in the positive outcomes anticipated from this significant strategic pivot. He stated, “This move is not just about restructuring but about unlocking the full potential of our businesses, making them more agile, more focused, and ultimately more valuable to our shareholders and stakeholders.”

CEO Arnaud de Puyfontaine added, “We are setting the stage for a new era of growth and innovation for Vivendi. By allowing each entity to operate independently, we empower them to harness their strengths and pursue strategies that are best suited to their unique markets.”

Looking ahead

With the approval from the supervisory board, Vivendi’s plan is inching closer to reality. The upcoming shareholders’ vote will be a decisive moment in this transformative journey, setting the stage for an exciting future for Canal+, Havas, and the Louis Hachette Group. Investors and industry watchers will keenly observe the developments, anticipating significant shifts in strategy and operations that could redefine these companies.

Stay tuned for more updates as Vivendi steers through this groundbreaking transition. Follow our site for further insights and analysis on this and other major industry movements.