Media Giant Vivendi Posts Huge Loss
French media giant Vivendi Universal announced Thursday it had posted a net loss of $25.6 billion in 2002, the largest in French corporate history.
"2002 has been an extremely difficult year for Vivendi Universal," Chairman Jean-Rene Fourtou told a news conference. "2003 will be a year of transition and of financial and economic progress." In 2001, Vivendi posted a loss of $15.9 billion.
By contrast, AOL Time Warner Inc., the world's largest media company, ended the year with a loss of more than $100 billion.
Fourtou's news conference followed a crucial board meeting to discuss the possible sale of Vivendi's vast entertainment empire.
The disposal is seen as vital to help Vivendi pay off its multibillion-dollar debt and could turn into one of the largest entertainment auctions in years.
Fourtou said the company had been "approached by several potential partners." But he said any deals would only made public once they are concluded.
Assets under the spotlight include Vivendi's U.S. television and film businesses, which include the world's biggest music company, Universal Music Group, the Universal film studio and theme parks, as well as the USA and Sci-Fi cable networks.
Most analysts say the company's directors have three basic options: a block sale, an initial public offering or a partial asset disposal.
Leading contenders for the television and film units include Viacom Inc., the U.S. entertainment company, and General Electric Co.'s NBC and Metro-Goldwyn-Mayer.
Former oil tycoon Marvin Davis has made a $20 billion bid for all the entertainment assets but has threatened to withdraw the offer unless Vivendi agrees to exclusive talks.
The company has already been selling off assets to trim its debt.
As of Dec. 31, Vivendi Universal's net debt was $13.5 billion, compared to $43.3 billion a year earlier, the company said.
Fourtou said the company is "determinedly carrying through our 7 billion euro [$8.2 billion] asset disposal plan for this year."
Vivendi broke a record on French corporate loss that was only a day old. On Wednesday, France Telecom reported a net loss of $22.6 billion for 2002.
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