Vivendi’s takeover bid for Lagardère
Since Vincent Bolloré and his Vivendi group began pushing their pawns into publishing and media, first in 2019 with the takeover of Editis, and now with last week's absorption of Lagardère, the Group's adjusted operating profit (EBITDA) has risen significantly. It has risen from €690 million in 2021 to €868 million in 2022, an increase of almost 26%. In addition, adjusted net income has been multiplied by 2.2, thanks to the sharp rise in EBITA and income from financial investments.
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Vivendi: the entertainment giant
Founded by Napoleon III in 1853, Videndi is a French media and communications group.
The Group includes several leading companies in content production, communications, and media:
- Havas: a global communications group organized into three business units covering all the sector's activities (creativity, media expertise and health/wellness). Sales of 9.6 billion euros by 2022.
- Studiocanal: a leading European player in the production of films and TV series.
- Prisma Media: French leader in magazines, online video and daily digital audience.
- Gameloft: a world leader in mobile video games.
- Dailymotion: one of the world's largest video content aggregation and distribution platforms (over 350 million unique users per month).
- Group Vivendi Africa (GVA): an operator of FTTH (Fiber to the home) networks in sub-Saharan Africa.
Lagardère takeover: synergies expected
The acquisition of Lagardère, parent company of the world's third-largest publisher Hachette Livre, should enable the group to expand its international activities, better spread operating risks, reduce costs over the long term and increase sales.
In addition, Vivendi's acquisition of Lagardère (Hachette, Paris Match) will be reinforced by synergies with Canal+ (television), Havas (advertising) Prisma Media (magazines) and other Vivendi assets. According to Vivendi Chairman Yannick Bolloré, a "positive, value-creating symbiosis" is on the way.
Vivendi: two years to take over Lagardère
Brussels has given the green light "subject to certain conditions" to Vivendi's takeover of the Lagardère group, parent company of the world's third-largest publisher Hachette Livre. The takeover bid for Arnaud Lagardère's group, scheduled for September 2021, was approved by the European Commission on Friday June 9. However, Vivendi is obliged to sell Editis and the people magazine Gala to comply with European competition rules. The sale of Editis is not without consequences for the French media group, but the acquisition of Lagardère subsidiary Hachette should more than compensate for the loss in sales.
Much stronger internationally than Editis, Lagardère's subsidiary is the French market leader and number three worldwide in publishing. In addition, Hachette has teamed up with PowerZ - a French start-up developing an educational game for children - to develop its offer in the Metaverse, notably through the construction of a virtual world, entitled "Beyond the Pages".
Vivendi: Canal + invests in streaming platform VIU
En juin, le Groupe Canal + (propriété de Vivendi) a annoncé la signature d’un partenariat stratégique avec l’entreprise PCCW Limited, une entreprise hong-kongaise spécialisé dans les services de télécommunications, afin d’accélérer le développement de VIU. Cette plateforme de streaming est présente sur 16 marchés notamment en Asie, au Moyen-Orient et en Afrique du Sud. Elle compte plus de 66 millions d’utilisateurs actifs mensuels. Ainsi, l’objectif du Groupe Canal + est de faire de ses activités en Asie un nouveau moteur de croissance.
L’opération d’un montant de 300 millions de dollars sera échelonnée et Canal+ disposera d'une option pour augmenter sa participation dans VIU à 51%.
In June, the Canal + Group (owned by Vivendi) announced the signature of a strategic partnership with PCCW Limited, a Hong Kong company specializing in telecommunications services, to accelerate the development of VIU. This streaming platform is present in 16 markets, notably in Asia, the Middle East and South Africa. It has over 66 million monthly active users. Canal + Group's objective is to turn its activities in Asia into a new growth driver.
The $300 million transaction will be staggered, and Canal+ will have an option to increase its stake in VIU to 51%.
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