Recent spin-offs of Vivendi include Canal+, Havas, and Louis Hachette Group. Analysts and investors are increasingly calling for clearer strategic roadmaps to justify the highly awaited corporate split. The Bolloré family had announced a restructuring plan that would unlock shareholder value, but this has left investors questioning its short-term impact.
Break-Up Strategy and Market Performance
The four independent, multi-billion-euro entities were spun off from Vivendi in December. The company expected it to enhance valuation as the overall market capitalization of a French media conglomerate was perceived to be lower than the sum of its parts. Market reactions have been mixed, however, with some of the newly listed entities having a shaky start.
Since its inception, the shares of the spun-out companies have failed to breach their pre-split combined value. The result has thrown the entire purpose of the Bolloré family in question, particularly the goal of value enhancement across the board. The only company currently trading above its listing price is Louis Hachette Group. Canal+, the largest of the four, has lost 31% since listing on December 16 in London.
Investor Concerns and Strategic Gaps
Analysts generally agree that the lackluster market reaction is primarily due to low strategic clarity combined with poor financial direction, and confusion over Canal+'s acquisition of South African broadcaster MultiChoice. Meanwhile, UBS analysts added that the split did not bring value creation on day one, particularly for Canal+, as there were no dividend payments, which dented investor concerns.
As the Enders Analysis analyst Francois Godard explains: "It would have been even bad if it has come at wrong time. Now, it's impossible to break the group on the right moment for all of these companies. And still, the canal+ had a South African deal not sealed yet. For now, it has to explain and take time.
The market will gain a better understanding of the trajectories of these companies in the second half of 2025 after a few quarters of financial results.
Upcoming Results and Future Outlook
Individual performance by the new, independent companies could finally be highlighted during the forthcoming announcements of the full-year results. Havas has scheduled the declaration of its financial statement on March 5 while Louis Hachette Group's announcement date has been set on February 13. Canal+ earnings, however, is yet to schedule its announcement, keeping investors hungry for news.
Through data from LSEG, as of January 17, the market capitalization of the four firms stands at €7.7 billion ($7.92 billion). In other words, Vivendi would be selling itself down by around €8.3 billion pre-split valuation.
Challenges Ahead for Canal+ and Beyond
Pressure on Canal+ to repair investor confidence. Here, analysts affirm that the fall in the share of the firm is closely associated with bad financial guidance and still looming uncertainties of acquisition strategy. Yet, the company can mend itself with the passing time and proper communication of its long-term goals.
Representatives from Vivendi, Canal+, Havas, and Louis Hachette, and also the Bolloré Group, did not comment. The analysts, however believe that definite strategies and increased performance will justify the separation.
Conclusion
For Vivendi’s spin-off strategy to succeed, management teams across the newly independent companies must articulate clear roadmaps and deliver tangible results. Investors and analysts alike will watch closely as these entities navigate their first full year of independent operations, with a clearer picture likely to emerge in 2025.