Vivendi says wants to sell 50% of Universal Music Group | Inquirer Business

Vivendi says wants to sell 50% of Universal Music Group

/ 05:45 PM July 31, 2018

Vivendi said it expected a transaction in the coming months which would be completed by the end of next year. Image: AFP

French media group Vivendi said Monday it plans to sell up to 50 percent of Universal Music Group as it reported a drop in net earnings.

As revenue dipped 1.4 percent at the music label to 2.6 billion euros ($3 billion), Vivendi’s management team told the company’s board of directors that an initial public offering was too complicated and instead recommended a “sale of up to 50 percent of UMG’s share capital to one or more strategic partners, in order to extract the highest value.”

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Vivendi said it expected a transaction in the coming months which would be completed by the end of next year.

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Vivendi’s net profit slid 6.3 percent in the first half of the year to 165 million euros.

The bottom line was strongly impacted by a write-down of 512 million euros in the value of its investment in Telecom Italia, which it made due its loss of control over the board following a shareholder battle this spring led by the activist hedge fund Elliot Management Corporation.

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Vivendi’s sales rose by 18.3 percent to 6.4 billion euros, although without the consolidation of advertising firm Havas and currency effects the gain was 4.0 percent. MKH

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