DirecTV Pulls Out of Bidding for Vivendi’s GVT Division
DirecTV has withdrawn from the auction process, said Darris Gringeri, a spokesman for the U.S. satellite-TV carrier, in an interview. The largest U.S. satellite-TV provider submitted a preliminary bid for GVT in November, according to people familiar with the matter.
DirecTV Chief Executive Officer Michael White said in January at an investor conference that GVT was a “nice-to-have, not a must-have.” GVT would have added a phone and Internet component to DirecTV’s Latin American pay-TV service to provide a bundled service for Brazilian customers.
“I’ve got to become convinced that there are sufficient, tangible, real synergies, not foo-foo revenue synergies, to more than offset the premium one would have to pay,” White said at the conference. “That’s a pretty high bar.”
DirecTV, based in El Segundo, California, had been competing with a group of private-equity firms to bid for GVT, people familiar with the matter said in January. Jean-Louis Erneux, a spokesman for Paris-based Vivendi, couldn’t immediately be reached for comment today after normal business hours.
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