French media company Vivendi is considering plans to split its struggling telecoms company SFR from its main business in an effort to "refocus" for the future.

Vivendi announced that it has approved plans for a formal study of how to split the company in two, with entertainment and media assets on one side and its telecoms operations on the other.

A decision is likely to be announced early in the new year, with a vote on it then taking place at Vivendi's annual meeting a few months later in the spring.

The idea fits with Vivendi chairman Jean-Rene Fourtou's vision of focusing the company firmly on a small group of media assets that he believes will be better valued on the stock market.

The proposal comes after SFR revealed profits in the first half of this year had plunged 11.3 percent compared with the first six months of 2012. Total revenues were at €5.1 billion, with mobile revenues at €3.204 million – a fall of 17.4 percent.

SFR is the second-biggest telecom operator in France and is currently working on its 4G rollout.

Vivendi has already agreed a deal to sell its stake in video game business Activision Blizzard and is in discussion to sell Maroc Telecom to Etisalat.

If the latest suggested split was to be approved and go ahead, it would make SFR an independent company, competing with mobile giants Orange and Bouygues.

Alongside the announcement about the proposed split, Vivendi also confirmed that its biggest shareholder, Vincent Bollore, is to become vice-chairman.

More News

Iliad enters content game in France, finally launches Italian mobile business Iliad enters content game in France, finally launches Italian mobile business Iliad has acquired football rights in France and launched its opco in Italy as it looks to reboot after a disappointing set of financial results. More detail
Three UK appoints new CCO, CFO Three UK appoints new CCO, CFO The departure of Three UK's Chief Commercial Officer after just 18 months in the job has triggered a shake-up of the mobile operator's top team. More detail
TalkTalk to sell enterprise customer base to Daisy as it registers full-year loss TalkTalk to sell enterprise customer base to Daisy as it registers full-year loss TalkTalk has agreed to sell 80,000 business customers to rival Daisy Group in a £175 million deal. More detail
A1 Telekom Austria Group rebrand reaches Bulgaria A1 Telekom Austria Group rebrand reaches Bulgaria Bulgaria is the third A1 Telekom Austria Group opco to get rebranded as the telco looks to market itself as a provider of "advanced" IT, IoT, cloud and content services. More detail
Orange Business Services puts IoT to use on saving ships’ fuel costs Orange Business Services puts IoT to use on saving ships’ fuel costs Orange Business Services has expanded its work with Dobroflot by developing a customised IoT solution for the Russian fishing company. More detail
    

 

European Communications is now
Mobile Europe and European Communications

  

From June 2018, European Communications magazine 
has merged with its sister title Mobile Europe, into 
Mobile Europe and European Communications.

No more new content is being published on this site - 

for the latest news and features, please go to:
www.mobileeurope.co.uk 

 

@eurocomms