Vivendi's Spin-Off Unlocks Value: Why Canal+, Havas, and Louis Hachette Are Set to Soar

The long-awaited spin-off of Vivendi’s media and advertising subsidiaries—Canal+, Havas, and Louis Hachette—has finally set these companies free from the conglomerate discount that held them back. As standalone entities, they now have the flexibility to capitalize on sector-specific growth catalysts, unlocking their true potential. For investors, this is a pivotal moment to seize undervalued assets primed for explosive growth.

The Conglomerate Discount: A Thing of the Past

Vivendi’s former structure, which bundled diverse businesses like Universal Music Group and Gameloft under one roof, subjected its subsidiaries to a valuation discount. Investors penalized the conglomerate for its sprawling, complex portfolio, resulting in a stock price that lagged behind the sum of its parts. The December 2024 spin-off has eliminated this discount, allowing each entity to stand on its own merits.

The move has already freed up $10.8 billion in assets, and the subsidiaries’ post-listing performance is now isolated from Vivendi’s broader financial dynamics. For instance, Vivendi’s reported net loss of €6.004 billion in 2024—driven by spin-off-related capital losses—is now irrelevant to the standalone entities. This separation is a catalyst for value discovery.

Canal+: Streaming to the Forefront

Stock Symbol: CANAL (Euronext Paris)

With 26.4 million subscribers across 50 countries, Canal+ is a media powerhouse. Its streaming service myCANAL and strategic investments in Africa (via a €255M stake in MultiChoice) position it to capitalize on the $150B global streaming market.

Growth Drivers:
- Digital Dominance: myCANAL’s expansion into 10 new markets by 2025.
- Content Edge: Exclusive series and partnerships with Hollywood studios.
- Africa’s Boom: MultiChoice’s reach into 40 African countries, where smartphone adoption is surging.

At a valuation of €2.5B post-spinoff—far below its peers—Canal+ offers a rare entry point into a sector where winners are consolidating.

Havas: Advertising’s Agile Innovator

Stock Symbol: HAV (Euronext Amsterdam)

With zero net debt and a client roster spanning Fortune 500 firms, Havas is uniquely positioned to profit from the $600B digital advertising boom. Its full-stack services—from AI-driven ad tech to PR and data analytics—make it a one-stop shop for brands in a fragmented market.

Growth Drivers:
- Global Reach: 100+ offices in 40 countries, serving industries from tech to luxury.
- Tech Integration: Investments in AI and programmatic advertising tools.
- Acquisition Potential: Post-spinoff cash reserves could fuel bolt-on deals in niche ad tech.

Havas trades at just 8x its 2024 EBITDA, a historic low for its industry. This is a buying opportunity in a sector where winners like WPP and Publicis command 12–15x multiples.

Louis Hachette: Publishing’s Digital Renaissance

Stock Symbol: LHG (Euronext Paris)

Combining Lagardère’s book publishing (think bestsellers and educational titles) with Prisma Media’s 70+ magazine brands, Louis Hachette is a content powerhouse. Its post-spinoff strategy focuses on digitization to counter declining print sales.

Growth Drivers:
- E-Book Boom: Lagardère’s e-publishing revenue grew 22% in 2024.
- Subscription Models: Prisma’s shift to digital magazine subscriptions (now 30% of revenue).
- Tax Efficiency: French shareholders benefit from a flat 30% tax on distributed income.

At €1.8B, its valuation is half its peers’, yet it boasts a 4% dividend yield—unheard of in publishing.

Vivendi’s Remaining Gems: A Bonus for Investors

While the subsidiaries take center stage, Vivendi’s core—now streamlined—still holds value. Its 100% ownership of Gameloft (which saw a 37% EBITA jump in 2024) and stakes in Universal Music and Banijay Group provide a steady cash flow. A reveals its commitment to shareholder returns, with €342M repurchased in 2024 alone.

Why Act Now?

• Undervalued Catalysts: All three subsidiaries trade below peers, offering asymmetric upside.
• Sector Tailwinds: Streaming, digital ads, and hybrid publishing are all $100B+ growth markets.
• Execution Risk Mitigated: The spin-off is complete, and each company’s management has clear growth plans.

This is a rare inflection point: a multi-asset play on three undervalued leaders in high-growth sectors. Don’t miss the chance to buy these stocks at a discount before the market catches on.

Invest Now:
- Buy CANAL for its global streaming dominance.
- Buy HAV to ride the digital ad wave.
- Buy LHG for dividends and publishing’s comeback.

The conglomerate discount is gone. The catalysts are in place. The time to act is now.