The roots of Vivendi go back to the mid 1800s, when the company was created by an Imperial decree by Napoleon III. Basically, it became a top provider of water.
It was a business that generated tons of cash flows -- and allowed for dealmaking. However, this activity almost destroyed the company. As a result, over the past few years, Vivendi has been restructuring its operations, with the main focus on mobile.
Yet, the company still owns a 20% stake in NBC Universal. The remaining equity is owned by General Electric (NYSE: GE).
In fact, Vivendi's stake could be worth $7 billion. So what to do?
Well, according to the New York Times, the company is exploring its strategic options, which may include a sale or even an IPO. It also looks like GE is exploring its own options and may buy back the stake.
Keep in mind that Vivendi negotiated some interesting terms in its deal for the stake (which was struck in 2004); that is, until 2016, the company has the right to sell back its equity to GE or to take it public.
And, this could happen by the end of this year -- making it a marquee deal. And, it could lead to other deals, perhaps even putting NBC Universal in play to be scooped up by a company like Time Warner (NYSE: TWX). Or, another possibility is for Google (NASDAQ: GOOG) to step in, which would certainly make things interesting.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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