Vivendi's Transformation Is Complete, But Value-Creation Seems Limited

2025-04-28 16:48:21 ET

Summary

• Vivendi has completed its transformation into an investment holding company, but value creation could be limited without more active portfolio management.
• Gameloft is now Videndi's operating business; its niche focus on mid-tier and free-to-play games limits its potential for significant earnings growth compared to larger gaming companies.
• Vivendi's passive investment strategy, with minority stakes in various media and entertainment companies, lacks the active management needed for maximizing value generation.
• Investors might be better off investing directly in promising holdings like Universal Music Group or Banijay rather than relying on Vivendi's overall portfolio performance.
• UMG and Banijay are good assets, and Vivendi looks like it could be 15-20% undervalued today, but I don't see a firm foundation for long-term value creation.

For years investors had clamored for Vivendi (VIV.PA) ( OTCPK:VIVHY ) ( OTCPK:VVVNF ) to simplify and shrink, and while it took the better part of a decade, they ultimately got their wish when the company spun off Canal+ , Havas ( OTC:HAVSF ), and Louis Hachette Group in 2024, largely completing the transformation of Vivendi into an investment holding company with sole ownership of game publisher Gameloft and minority shareholdings in seven other media and entertainment companies....

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