Vivendi Universal to acquire Television Par Satellite
Vivendi Universal SA has announced plans to take over the operations of Television Par Satellite. They would be merging this unit with their French pay-TV business Canal Plus. The combined entity would be worth around 7.5 billion euros ($9 billion). Vivendi would own close to around 85 percent of the combined company.
The rest of the shares would be owned by TPS owners Societe Television Francaise 1 and M6- Metropole Television. This information was released in a joint statement released by the groups. Canal Plus and TPS have till now competed against each other to get more customers in their markets. This made their independent operations quite expensive and the deal would bring some relief to both the parties.
They would now be competing against the newer players in the market like France Telecom SA and Iliad SA. Vivendi currently own around 49 percent of publicly traded Canal Plus SA through its Canal Plus Group unit. They also have a major stake in the Canal Satellite. Lagardere SCA is the other shareholder in Canal Satellite and they would now have the option to become a stockholder in the combined business.
Vivendi Chief Executive Jean-Bernard Levy said in a statement on this deal: â€œToday Lagardere is our partner in an important unit of Canal Plus. They can stay in Canal Satellite, or, as is our preference, Lagardere could join the capital.â€