Vivendi Board Gives Go-Ahead For Business Split & Sets December Shareholder Vote; Former Paramount CEO Bob Bakish To Join Canal+ Board

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Vivendi‘s plan to split its business in three has gotten board approval and will be taken to a shareholder vote on December 9. Should it go ahead, former Paramount Global CEO Bob Bakish will take a seat on the Canal+ board.

The board has approved the resolutions that will be submitted to shareholders to vote on whether Canal+, ad business Havas and publishing house Louis Hachette Group should separate.

Should the demerger go ahead, Canal+ will begin trading with debts of €400M ($433M) and have a corporate team led by Yannick Bolloré, Chairman of the Supervisory Board, and Maxime Saada, Chairman of the Management Board and CEO. Jacques du Puy and Anna Marsh will both be Deputy CEO, and Amandine Ferré will be CFO.

Board members will include Bolloré, Arnaud de Puyfontaine and, intriguingly, U.S. entertainment veteran Bakish, who has been lying low since his exit as CEO of Paramount earlier this year in April. Bakish will comprise one of eight independent members on the 12-strong board.

The Canal+ and Louis Hachette elements of the split will require two-thirds majorities, while the Netherlands-based Havas part will just need a majority. This is due to the changes that will impact the corporate structures of the different businesses.

Should the plan get shareholder approval, the three businesses would begin trading separately on December 16. Each individual stake owner would see shares allotted on a one-to-one bases. In effect, each Vivendi shareholder who participates in the spin-off will receive one Canal+ share, one Havas share and one Louis Hachette Group share, while retaining their Vivendi share.

Under the new structure, Canal+ would be listed in the UK, Havas in the Netherlands and Louis Hachette on Euronext. Each company would operate separately with a “decision-making center of their activities, as well as their operational teams, in France.” Vivendi would remain on Euronext Paris.

Vivendi Posts First-Half Revenues Of $9.8 Billion, Bolstered By Canal+, Lagardere

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Vivendi, the parent company of French pay TV banner Canal+ Group, saw its 2024 first-half revenues reach $98 billion, a 5.8% year-on growth. The media conglomerate also posted a 98.4% spike in second-quarter revenues.

Lagardère, the media, publishing and travel retail conglomerate which was acquired last year, as well as Canal+ Group, bolstered revenues. Vivendi also boasted an EBITA of $671 million — 39.3% up compared with the first half of 2023, driven by the consolidation of Lagardère and the growth of Havas. At constant currency and perimeter, EBITA increased by 13.5%, while adjusted net income reached $357 million.

Canal+ Group’s revenues went up by 4.6% to $3.2 billion, helped by TV operations in mainland France and overseas. Revenues from Canal+’s film and TV group Studiocanal also increased by 8.6%, thanks in part to the performance of Amy Winehouse biopic “Back to Black” which was released on April 24 and has sold around the world.

Under the leadership of CEO and chairman Maxime Saada, Canal+ has also increased its interest in Scandinavian pay TV banner Viaplay to 29.33%, becoming its largest shareholder; and recently took a stake in leading Senegalese production company Marodi TV. Canal+ has also made a tender offer to buy the African service MultiChoice Groups.

Asia is also part of Canal+’s international expansion plans. The company has increased in the leading Asian OTT service Viu to 36.8% and is now looking to have it go up to 51%.

Back in France, Canal+ Group has bought OCS, pay-TV package and Orange Studio, the film and series co-production subsidiary. Some of the new editorial developments include the creation of Studiocanal Stories, a new label dedicated adapting literary works into films and TV series in France and several European countries. Canal+ Group is also continuing to strike deals and partnerships with big U.S. players, including Warner Bros. Discovery which signed a distribution agreement with the French banner for its standalone streaming service Max.

Vivendi’s management board gave an update on the group’s plan to split into three separate entities and list assets. Under current plans, Canal+ will be listed at the London Stock Exchange, Havas at the Euronext Amsterdam, and an entity which will bring together publishing and distribution, including Louis Hachette Group, at the Euronext Growth Paris. Vivendi will remain listed on Euronext Paris.

Vivendi said Canal+ and Havas will maintain their leadership and operational teams at the Paris headquarters, and they will also remain French tax residents for French corporate income tax purposes.

Yannick Bolloré, chairman of Vivendi’s Supervisory Board, said the group’s half-year results were “driven by our three main businesses, which contributed to organic revenue growth of nearly 6% and organic EBITA growth of 13.5%.”

Arnaud de Puyfontaine, Vivendi CEO, meanwhile, said its “various businesses have demonstrated their dynamism, both in terms of organic growth and acquisitions, the strength of their respective business models and their ability to transform and adapt to their environment and the expectations of their customers.” The executive said the group is currently “strengthening its international positions.”

Canal+ Owner Vivendi Is Still Exploring A Stock Split, Publishes First Quarter Revenue

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Canal+ owner Vivendi is still exploring a stock split, as it today posted first quarter revenues up significantly.

France-based Vivendi posted Q1 revenues of €4.28B (R86 billion), up 5.4% on 2023’s numbers when using constant currencies and and the businesses the firm owns today. No earnings were revealed in the unaudited numbers.

Within those numbers, Canal+ saw revenues grow 4.3% year-on-year to €1.5B (R30 billion, +3.5% at constant currency and perimeter). International revenues were up 5.8% thanks to subscriber growth, particularly in Africa, where Canal+ has been buying up shares in MultiChoice and looks set to take over the South African giant. Mainland France TV operations revenue was up over 5%.

However, Studiocanal saw revenues decline compared with 2023, when the likes of Alibi.com 2 and John Wick 2 had significant domestic and international launches.

Other notable performances saw social video platform Dailymotion increase revenues by 24.8%, with the ‘New Initiatives’ division it is housed in posting €42M in revenues overall.

This financials come amid a period of corporate soul-searching at Vivendi, and following the takeover of publisher Lagadère in November last year.

The Paris-based company believes its stock price has been “substantially” reduced due to the consolidated nature of its media operations following the listing of Universal Music Group and wants to split its business.

Having already outlined a plan to explore dividing pay-TV and content giant Canal+, ad firm Havas and publisher Lagadère, Vivendi said a feasibility study into a stock split had been going since December 2023. The company says all three units are individually performing well — with each posting year-on-year revenue growth today — and have been hindered in their ability to invest by the “high conglomerate discount” on its shares.

The current plan is for Canal+, Havas and a publishing and distribution division would all list as independent entities on the stock market. Vivendi would also remain publicly listed “maintaining its role of supporting the transformation and expansion of its subsidiaries and continuing to actively manage its investments.”

Should the Vivendi board approve the split, employee representatives at each new entity would be engaged before necessary regulatory, bonder holder and other lender approvals is sought. A final vote would then take place at the AGM in April 2025 to ratify the moves.

Yannick Bolloré, Chairman of Vivendi’s Supervisory Board, and Arnaud de Puyfontaine, Chairman of Vivendi’s Management Board, said in a statement: “Today we are publishing a particularly sharp increase in revenues for a first quarter. This reflects the strength of our three core businesses and the Group’s ability to transform and grow.

“The organic growth of 5.4% compared to the first quarter of 2023 was notably driven by the significant contribution of Lagardère, validating the relevance of the transaction with this group last November and our confidence in the potential of its activities. Canal+ Group and Havas also delivered solid performances, with increases in reported revenues of 4.3% and 6.2%, respectively, over the same period.”