By Nina Kienle

Vivendi revealed that its supervisory board has given approval to a plan for splitting the group into separate entities. However, instead of three divisions as initially proposed, the French media group now intends to separate into four publicly traded businesses.

These four entities will be centered around Canal+ TV, Havas advertising, a company that brings together publishing and distribution assets (including recently acquired Lagardere), and an investment company.

Vivendi's management board initially suggested dividing the group into three units: Canal+, Havas, and an investment company. However, the updated plan will provide each of the four businesses with the necessary human resources and financial agility for their individual growth.

The purpose of this split is to support the development potential of all of Vivendi's operations. The company acknowledges that its valuation has significantly decreased since the spin-off and listing of Universal Music Group in 2021. This reduction in value has constrained Vivendi's ability to pursue external growth transactions.

Vivendi plans to provide further details on its separation plan when it announces its full-year results on March 7.

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