The historic, half-playful, half-serious Franco-British rivalry has resurfaced in the business arena.
Vincent Bolloré, the French media tycoon, has decided that Canal+, the television business of his Paris-based conglomerate Vivendi, would be best off listed on the London Stock Exchange. It is a move that has raised a few eyebrows on both sides of the Channel.
The plot, which still needs approval from Vivendi’s shareholders, could potentially value Canal+ between five to seven billion euros, according to analysts’ estimates.
It is a coup for London but a blow to France. Although, if it’s any consolation, Vivendi plans to list its newly renamed publishing arm, Louis Hachette Group, on the growth market of the Parisian exchange, Euronext.
Vivendi’s advertising and communications business, Havas, will be listed in Amsterdam as part of the company’s broader restructuring strategy to divide its operations into three distinct entities.
The French firm is hoping to counteract a conglomerate discount and lack of focus that it says has been “substantially” smothering its overall valuation and limiting growth opportunities for the three subsidiaries.
What is Canal+?
Canal+ is a global film and television company, operating in over 50 countries, that shows TV series, movies, sports, documentaries and entertainment.
Since its merger with Vivendi in 2001, Canal+ has become a cornerstone of Vivendi’s extensive media portfolio, which also includes mobile games publisher Gameloft and video-sharing platform Dailymotion.
With over 25.5m subscribers across more than 50 countries, Canal+ added 900,000 subscribers in 2023. Last year was a record year for its film production subsidiary, StudioCanal, which has also recently produced blockbusters such as Back to Black, the Amy Winehouse biopic, and Paddington in Peru.
Canal+, is also known for its acquisition of sporting rights, often exclusive, and has the largest sports subscriber base in France. British sports streaming platform Dazn launched in France last year through a deal with Canal+, although this ended in July after the agreement reportedly soured.
Enders analysts said Canal+ may decide not to patch up the partnership if it goes public, in favour of cost control. “On the other hand, a carriage deal with Dazn would certainly enhance its pitch to investors, allowing it to claim that all premium football is on its platform,” they added.
Why London?
Vivendi has said its decision to list Canal+ in London is aimed at wooing international investors. Nearly two-thirds of Canal+ subscribers are based outside France.
Although it has no presence in the UK streaming market, media analyst Alex DeGroote said the LSE is a natural fit for Canal+ given London’s strong media sector and its investors’ understanding of the TV industry.
“Canal+ would be far too small for the US; there would be nil interest,” DeGroote explained. Amsterdam is a plausible alternative, “but it’s not really known for media,” he said.
Vivendi is not completely severing its French ties though. Canal+ will remain incorporated and taxed in France, exempting it from mandatory stock market regulations in both the UK and France.
It is a much-needed boost for the LSE, along with this a potential secondary listing of Anglo American’s South African division Platinum, in London.
Amid a period of big corporate departures, such as chip company Arm and gambling giant Flutter, it could mark the start of a turnaround.