OT- Sort of Vivendi Universal

[EUROPA]

Looks like their are rumors of Vivendi selling off some of their under performig assets.

http://www.orlandosentinel.com/news/local/orl-locmiket07060702jun07.column?coll=orl-home-headlines



Add that to the announcement today that they are selling their cable operations in Italy to News Corp....we just might have new blood running both of the parks in Orlando. Maybe Fox is looking for an outlet for that huge movie library? Lets hope if this happens its starts attraction war between the two and the guest will reap the benefits.

http://biz.yahoo.com/rb/020608/media_vivendi_newscorp_2.html

 

[Another Voice]

Vivendi is running into exactly all the problems one would expect a sewer company that tries to turn itself into a media giant overnight. They have a huge debt load from all their acquisitions and a huge problem turning a French state business into an American style company.

It should also be noted that all of Universal’s parks contribute on 5% of Vivendi’s income. They are not considered to be a major segment of their operations, more of “nice to have” hobby. The Disney parks, however, contribute 40% of The Mouse’s profits.

 

[Bstanley]

So, given that V-U needs cash (Moody's rates their bonds just one step above "undesirable") and the Universal parks are a "nice to have" hobby - but could be worth quite a bit on the open market - does V-U sell them? is there an obvious buyer?

 

[Testtrack321]

V-U won't sell the parks, they are their front line against the mouse. Once their gone, they gave up. And Disney won't have any competition, so they'll become lazy and won't put in new rides.

If they do sell, AOL-Time Warnere looks good, espically since they are already in parts of the park.

 

[Another Voice]

Vivendi is going to have the same problem with the Orlando parks that the booze guy ran into – there aren’t a lot of buyers for theme parks. The conventional wisdom is that the Orlando parks are first rate, but that they should have been built near Tampa or Miami. Universal Japan is a colossal success, and Universal Hollywood will always be a big hit with tourists coming by the 747 load (which has been a significant problem recently).

Six Flags would seem like a natural fit, but the Universal parks and hotels are way outside of their business plan. It’s also unlikely that AOL TimeWarner is in much of position to help Six Flags with the cost of the purchase. Viacom (Paramount Parks) don’t seem to be interested in expanding any investments in attractions. Bush could quickly become the King of International Drive by buying Universal, but again there doesn’t seem to be much interest in expanding that portion of their business.

It should also be noted that the success of Universal Japan and the gains being made at Universal Orlando seen as a strength within Vivendi. There are rumors of a planned park in Germany so there is corporate interest on building. I think you’ll see Vivendi sell off other assets (like anything in France for purely political reasons) before they try to move the parks.