Pursuits
Vivendi Plummets as Investors Question Heavy Investment Plan
- Stock falls most in 3 years as CEO says it's 'time to build'
- Vivendi has $10 billion cash pile after selling telecom assets
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Vivendi SA fell the most in more than three years in Paris after saying it intends to use a $10-billion cash pile to invest heavily in digital media distribution and content, raising investors’ concerns that the plan may limit the return of funds to shareholders.
The French media company described the markets facing Universal Music Group and Canal Plus as “competitive” and “volatile” and vowed to push forward with restructuring at the French pay-TV service. Vivendi said it will consider investments in 2016 and 2017 that will strengthen its digital distribution of music and differentiate its pay-TV offering through content and access platforms.