VU, end of the American dream
After the large scale acquisitions made during the time of Jean-Marie Messier and the series of financial problems that followed, this morning, the French group Vivendi Universal has ceded 80% of its American business (run by the subsidiary VUE) to General Electric which will add these new assets to the NBC entertainment empire.
This move will bring $3.3 billion into Vivendi Universal’s coffers and there will be $3.8 billion for the VUE shareholders.
Out of the many applications put forward for the business, Vivendi Universal and its president, Jean-René Fortou, have finally plumped for GE. It’s well known that VUE was a tasty morsel to be snapped up as it offered a package including the famous Universal Film Studios, the US Networks TV channel and many fun parks. But Vivendi Universal will be keeping the Universal Music record label and the video games sector, as well as 20% of the shares in the new NBC Universal group, though it can sell these shares from 2006 onwards.
According to Jean-René Fourtou, it is an excellent agreement “which allows us to significantly reduce Vivendi Universal’s debt. At the end of 2004 our debt will be less than €5 billion” he told the press today.
This possibility of this sale had been known about for some time and on the national front VU is repositioning itself in the telecommunications (Cegetel) and TV sectors, with the satellite channel Canal+, which has gone through a tough time in 2003, and now hopes to continue on a more positive footing.
(Translated from French)
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