Vivendi is considering an option to split its entertainment properties from its troubled telecommunications business, according to an executive who had been briefed on the matter.
Under the proposed plan, Vivendi would separate its subsidiaries video games publisher Activision Blizzard Inc., pay TV company Canal+Group and Universal Music Group from its telecommunications companies, including French mobile company SFR, Maroc Telecom Group in Morocco and GVT in Brazil.
Should Vivendi choose to break up, the two resulting companies would be run separately, said the executive, who did not want to disclose his name because the briefing was confidential.
The possible sale was first reported by Bloomberg.
The plan is one of several options on the table as Vivendi considers how to deal with the crisis within its SFR division, whose sales made up 42% of Vivendi's total revenue in 2011. SFR revenue declined 3.1% last year as new low-cost cellphone rivals succeeded in luring away its customers and eating into the division's profits, which shrank 7.8%.