Tensions are reported to be growing at the top of entertainment giant Vivendi Universal. The man trying to rescue the Vivendi Universal parent company in France - CEO Jean-Rene Fourtou – is said to be in New York to meet with the man in charge of Universal’s entertainment operations, Barry Diller, to discuss disagreements over what payments Diller will receive if he masterminds a successful sell off of any of Universal’s entertainment assets. While the two men claim to be on good terms insiders suggest Fourtou is losing patience, and that he is now dealing with the music division’s top man Doug Morris direct, rather that going via Diller.
Diller has been looking into the sale of some or all of Universal’s entertainment companies after the group spiralled into financial chaos after allegations of false accounting last year. He was put in charge of the group’s music, film and games companies in order to do this.
According to the Wall Street Journal several potential buyers are said to have approached Vivendi about buying its entertainment businesses, either in pieces or as a whole package, including oilman Marvin Davis, NBC, Metro-Goldwyn-Mayer and John Malone’s Liberty Media. But insiders reckon the most likely scenario is an initial public offering, led by Diller, sometime later this year in which Vivendi would keep a large stake in the businesses—perhaps as much as 40%.