Shares in struggling media giant Vivendi Universal, the parent company of labels Polydor, Mercury and Island, jumped up yesterday after they announced they had rejected a £9.5bn bid for its entertainment assets. They confirmed they had received an offer from a group of investors led by billionaire oil man Marvin Davis to buy Vivendi’s entertainment outlets – including its record labels, film studios and the USA Networks cable unit. The offer was rejected, it has been said, because Vivendi Chief Executive Jean-Rene Fourtou sees the entertainment assets as being at the heart of the group's new strategy. This strong commitment to a core part of the business was enough to send shares up 8.4% to 12.35 euros.
Meanwhile Vivendi’s music division has announced plans to offer 43,000 tracks from its music catalogue online. Individual tracks from across its roster will be available to download for $1, with albums available for $10. How the tracks will be accessed, and what copyright mechanics are in place, is as yet unclear, though Universal bosses indicate they see their entire back catalogue eventually being accessible via the web.