You have to wonder how Universal‘s rivals are going to feel about this one.
UMG parent Vivendi is set to acquire a 15% stake in the leading physical music retailer in France, Fnac.
Vivendi has bought the stake in the business for €159 million at a price of €54.0 per share.
Paris-based media giant Vivendi says it has made the move as part of a ‘strategic partnership to launch a co-operation plan dedicated to cultural activities’ – which could take the shape of special distribution relationships.
Fnac, one of France’s largest retailers, has over 120 stores across its home market.
It also operates more than 75 international stores across Belgium, Brazil, Monaco, Morocco, Portugal, Spain, Switzerland, Qatar and the Ivory Coast.
The two companies say they intend to ‘develop co-operation that creates long-term value’ and that the deal is focused on several key areas:
- ‘Enhanced visibility of cultural content, which could take the form of distribution partnerships’;
- ‘Increased co-operation in live events, an area in which Vivendi has forged several initiatives, and of ticketing in certain countries by teaming with Vivendi Ticketing’;
- ‘Privileged access to extended digital services for customers of the two groups’;
- ‘Acceleration of Fnac’s international development, in particular in Southern Europe as well as in Africa where Vivendi has been operating for over twenty years’.
The completion of the deal is subject to the approval of the Group Fnac’s shareholders at their next Shareholders’ Meeting.
Fnac has agreed to propose the appointment of two directors to represent Vivendi on the Fnac Board of Directors.Music Business Worldwide