World Stock Watch

Vivendi’s Break-Up Blues: Investors Seek Clarity

After Vivendi’s much-anticipated split into four multi-billion-euro companies, investors are left underwhelmed. The French media conglomerate’s break-up, backed by the Bollore family, aimed to unlock value, but the newly spun-out companies have struggled to convince investors of their worth.

A Lack of Clear Strategy

Analysts and investors point to a lack of clear strategy from Vivendi management and the bosses of its newly spun-out companies, Canal+, Havas, and Louis Hachette Group. This uncertainty has led to disappointing financial guidance and a weak start for some of the standalone companies.

Shares Take a Hit

Shares in Vivendi’s newly listed businesses have fallen to levels below their combined value before the split, undermining the Bollore family’s hopes to boost value. Only Louis Hachette shares are currently above their listing price, while Vivendi is trading above its pre-split value.

Canal+ Struggles

Canal+, the largest company, has been the biggest laggard, with its shares down 31% since listing on December 16. Analysts attribute this to a lack of information about its strategy and uncertainty around its acquisition of South African broadcaster MultiChoice.

Havas and Louis Hachette Report Soon

Havas and Louis Hachette are set to report their full-year results on March 5 and February 13, respectively. Canal+ has yet to set a date for its results. Investors are eagerly awaiting these reports to gain a clearer understanding of the companies’ strategies.

Uncertainty Around MultiChoice Acquisition

The market remains cautious about Canal+’s acquisition of MultiChoice, with questions surrounding the route to profitability and the deal’s closure.

Minority Shareholders Express Concerns

Some minority shareholders, including activist funds CIAM and Phitrust, opposed the break-up plan, arguing that it would deprive investors of the protection of French stock market laws.

A Wait-and-See Approach

Investors are taking a patient approach, waiting for the companies to explain their strategies and for the market to revalue the combined four stocks. As one fund manager put it, “Let’s be patient, the Vivendi galaxy is a story of 2025, not December 2024.”