Vivendi Is Rebuffed Over Potential Deal for Telefonica’s TV Unit

(Bloomberg) -- Telefonica SA told Vivendi SA its Spanish pay-TV unit is not for sale, after the French media group inquired about the possibility of acquiring the broadcaster, according to two people familiar with the matter.

Vivendi recently made an informal approach expressing interest for a potential deal with Movistar+ the people said, who asked not to be named because the matter isn’t public. 

Telefonica is running a strategic review of its TV unit, which has been a major part of its Spanish commercial strategy since it acquired it in 2014, according to a person familiar with the plans. While it may consider looking for a financial partner, it’s not currently planning an outright sale of the unit, the person added. 

Movistar+ is the largest subscription television provider in Spain, owning a majority of Spanish soccer rights.

Spokespeople for Vivendi and Telefonica declined to comment.

Billionaire Vincent Bollore, the controlling shareholder of Vivendi, has been working for years to build a European rival to the American streaming platforms. In 2016, Vivendi took a stake in Italian group Mediaset to build what was dubbed a “Latin Europe Netflix,” an aborted project that led to a five-year dispute over the scrapped pay-TV deal.

Vivendi became a significant investor in the Spanish media sector after it acquired a 9.9% stake in Promotora de Informaciones SA, the largest publisher and radio operator in Spain, in 2021. Vivendi has sought government permission to increase its stake in the publisher to as much as 20 percentage points more. Telefonica also owns a a 9.4% stake in the firm. 

Vivendi’s pay-TV group Canal+ claims 24 million subscribers, with a third in France, and plans to reach 30 million in 2025. Canal+ has been expanding across Europe and Africa in recent years through acquisitions.

“We are currently looking at between five and ten acquisition files on all continents,” Canal+ Chief Executive Officer Maxime Saada told newspaper Le Figaro on March 21. He added that Canal+ was aiming for a spot in the top five of the world’s biggest paid content players in 2030.

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