As I delve deeper into the fascinating world of international media and entertainment, it becomes increasingly clear that my journey has been as captivating as any movie plot. Having lived and worked in China for several years, I can attest to its dynamic and ever-evolving landscape, much like a fast-paced Hollywood blockbuster.
French pay TV giant Canal+, which is behind “Paddington” producer Studiocanal, has officially split from parent company Vivendi in time for its 40-year anniversary. Making its debut solo on the London stock exchange on Monday, Canal+ enlisted a homegrown executive, Amandine Ferré — who has been at the company for 15 years and was most recently based in China — to “cut the cord” and engineer the IPO.
This morning, Canal+’s shares started at 290p and fell approximately 20% around local noon, which roughly equates to a market value of £2.4 billion. Ferré, who serves as the CFO and is part of Canal+’s management board, informed EbMaster that these fluctuations were expected. “We understand that in the initial weeks, our share price may exhibit some volatility,” she stated. However, Ferré predicts a recovery for Canal+’s shares by January.
Previously leading the acquisition of Chinese streaming service Viu by the French TV group, Ferré recently returned from China to Paris following a call from Maxime Saada, CEO of Canal+ Group and member of Vivendi’s board, whom she had worked with as a strategy consultant at Roland Berger long ago. “With a career-defining opportunity like this, I couldn’t say no!” she expresses. At 41 years old, Ferré brings extensive understanding of both Canal+ and the global market, having spent her childhood in Africa, lived in India, and resided in China. “Having held nine jobs over fifteen years,” she explains, “it provides me a broad perspective on the group’s operations, as demonstrated by my experiences at Dailymotion, Canal+ Tech, and Studiocanal.
Canal+ is being listed as part of Vivendi’s corporation-wide division plan, under which advertising group Havas and retail conglomerate Louis Hachette Group are also being separately listed on the stock exchanges in Amsterdam and Paris, respectively.
Ferré says the idea behind the split is to seek a higher valuation for Canal+ and better leverage the growth of these assets. “Before the split, Vivendi was suffering from a so-called conglomerate discount,” she says. “It is our belief that the sum of the value of each entity in the Vivendi group, i.e. Havas, Canal+, Louis Hachette and all the other shareholdings was largely undervalued when compared to the actual value of Vivendi shares.”
Vivendi has a history of making strategic moves on prominent assets, one such instance being the successful listing of Universal Music Group (UMG) in Amsterdam last September. UMG, with artists like Taylor Swift and Drake in its roster, saw an impressive 39% surge in share prices, reaching a market valuation of approximately $53 billion. The plan to spin off, overseen by Yannick Bollore, chairman of Canal+ Group’s supervisory board, aims not only to boost growth but also to foster collaborative opportunities with international subsidiaries such as MultiChoice in Africa, Viaplay in Scandinavia, and Viu in South-East Asia.
Ferré explains that by listing our stocks, we can utilize them as a form of currency. Currently, we hold shares in multiple businesses, and this move could potentially allow us to trade those shares. This new ability presents us with possibilities that were previously unavailable,” (paraphrased version)
In this piece, Ferré explores the details surrounding Canal+’s stock market listing in London, its implications for the business, and its future strategic direction.
Given your tenure at Canal+, what makes you believe that this moment is particularly suitable for Canal+ to independently list on the London Stock Exchange?
Canal+ has undergone a significant transformation over the past few years. Fifteen years ago, when I first joined, Canal+ was predominantly a French company with minimal international operations. Now, we operate in more than 50 countries, and more than two-thirds of our subscribers are based outside France. Unlike other media companies listed in Paris, such as TF1 and M6, which are deeply entrenched in the French market, we have a very different focus – our growth is primarily international, both organically and through acquisitions. Our acquisition of the MultiChoice group, Africa’s leading pay-TV group, would be our most significant operation to date. We are particularly interested in Sub-Saharan Africa, and MultiChoice aligns perfectly with this strategy.
Emmanuel Macron, President of France, advised EbMaster that businesses such as Canal+ should continue operating within France, given it hosts the largest stock market platform in Europe (the CAC 40). In light of this, why would one consider moving to London, particularly post-Brexit?
Brexit adds some complexity to certain tax aspects for the UK, but overall, it remains a vibrant local market and serves as an entry point to the broader Anglo-Saxon region. Furthermore, if our acquisition of MultiChoice is successful, being listed in London offers significant advantages because there are connections between the London Stock Exchange and the Johannesburg Stock Exchange. When you’re listed in London, there’s a “fast track” process, making it easier to be listed in Johannesburg as well.
Being listed in London also gives you a stronger footprint in the English-speaking world, right?
Investors with a passion for media are significantly more active in the Anglo-Saxon market compared to France. This trend is well-known. The Pay TV industry operates under fixed costs, making it advantageous to be a large player. It’s simpler to grow big when producing content in English as opposed to French, due to the larger market size. For instance, for our most successful series this year, “Paris Has Fallen,” we filmed it in English. This was strategically done to increase its global appeal and sales potential. Therefore, we are already heavily concentrated on the English-speaking market.
I’ve read that this split is meant to end conglomerate discount. Can you explain what this is?
The main reason behind Vivendi’s split is that the initial offering wasn’t a traditional IPO. Prior to the split, Vivendi was subject to what’s known as a conglomerate discount. We believe that the combined value of each entity within the Vivendi group, such as Havas, Canal+, Louis Hachette, and other investments, was significantly undervalued compared to the actual worth of Vivendi shares. This split is advantageous for Canal+ at this particular moment in time because it marks a new phase in our history. It’s a period of expansion through acquisitions like MultiChoice, and more broadly, we’ve undergone a major transformation in recent years. We’re no longer the same company we were 10 years ago, as we’ve managed to secure deals with major industry players. When Netflix and other platforms entered the French market in 2015, many predicted our demise, but Maxime Saada led Canal+ to adopt a “super-aggregation” strategy. Today, our subscribers can access Netflix, Apple TV+, and leading platforms through our app, a unique feature compared to other PayTV players in Europe as we’re the only ones to have adopted this hybrid model. This has allowed us to continue growing in mature markets.
Will Canal+ continue being a French company?
Although we’ll appear on the London market, we retain our status as a French company. Our headquarters will stay right here, and we’ll continue to honor our tax obligations in France. Most importantly, we take immense pride in our French origins. We have strong ties with the financing of French cinema and the broader French creative sector, which runs deep within us.
Why did Canal+ choose to go public independently when other media firms such as Mediawan have withdrawn from the stock exchange and Pathé postponed their initial public offerings (IPOs)?
Vivendi made the choice to perform this split, which we perceived as a beneficial opportunity for us due to our current developmental phase. Over the past few years, we’ve grown significantly and made numerous acquisitions. This split will simplify these acquisitions and allow us to utilize our shares as currency in future transactions. To clarify, we’ve already acquired shares in various companies, and we may engage in more share exchanges in the future – time will tell. Regardless, this move provides us with opportunities that were previously unavailable.
How do you think Canal+ will fare at the London Stock Exchange in the short term?
We acknowledge that our stock market journey may experience some initial fluctuations during the first few weeks following our company split and relocation from Paris to London. This is common practice when companies undergo such transitions, particularly changes in listing locations. Some investors who were part of Vivendi might choose not to stay as shareholders in a smaller company listed in London, due to their familiarity with the CAC index in France and the absence of Canal+ group from it. Consequently, these investors may sell their shares automatically or due to preference for keeping their investments within the Eurozone. Therefore, we anticipate a temporary period of instability around December, possibly continuing into early January, as many index-following investors exit and some prefer to hold onto their shares outside the Eurozone.
How key is Africa in Canal+’s international expansion?
Instead of only providing subscription numbers for Africa, we now cover Africa-Asia, where we have nearly 10 million subscribers. The population in Sub-Saharan Africa alone is projected to double to 2 billion by 2025. The per capita GDP in this region is rapidly growing, and as economies flourish, more people are gaining access to television. This growth in the economy coincides with an increase in our penetration rate.
And you have a deep knowledge of Africa, don’t you?
Growing up, I resided in a secluded part of Cameroon, as my father managed aluminum manufacturing facilities that required remote locations. My brother and I attended school on the factory premises. At that time, Canal was yet to establish itself in Africa, so our television programming was limited to the local Cameroonian public channel. However, my grandfather recorded shows from Canal+ onto VHS tapes, which he would regularly send us along with their subscriber magazine in a monthly package. As such, Canal+ was essentially my only TV growing up, making it an incredibly impactful brand for me. Essentially, each month’s package was like a mini-Christmas, and we watched each tape multiple times because there were no other options available!
What about Canal+’s development in Asia?
Lately, we’ve been actively engaged in various projects across Asia. One such endeavor involves our investment in Viu, a streaming platform similar to Netflix but specialized in Asian content. Operating primarily in Southeast Asia and headquartered in Hong Kong, Viu has managed to hold its ground against U.S. giants in the region. If you examine the current rankings in Asia, you’ll find Disney, Netflix, Amazon Prime, and only Viu remaining. What sets Viu apart is their dedication to local content, with a significant focus on Korean and Chinese series, as well as producing original content for their platform.
How do you see the Chinese market now, given that it was once viewed as a golden opportunity by Hollywood, but has significantly shifted and become more restrictive following the pandemic? Since you’ve resided in China for the past three years, I’m interested to hear your perspective.
In Europe, our understanding of China is quite fragmented, but since the COVID-19 pandemic, it’s intriguing to observe how political changes in China influence its audiovisual industry. Once upon a time, almost all American blockbusters were screened in Chinese cinemas. Today, this trend has significantly decreased. There’s a growing interest in cultivating the Chinese audiovisual sector due to its soft power implications. The aim is to foster what is known as “red cinema,” which is backed by the Ministry of Propaganda. However, it’s important to note that American cinema too carries a patriotic narrative. Currently, China is making a concerted effort to boost its domestic cinema production. This shift is also visible in Chinese television series. In the past, most Chinese series were historical dramas. But China has learned from South Korea’s use of cultural soft power and aims to replicate this strategy. Now, some Chinese series are of high quality and are remarkably similar to Korean series. Even in Vietnam, we’re seeing an increase in demand for Chinese series, which is driving our viewership ratings. We acquire these series for our markets because that’s what viewers want to watch.
How has it been adjusting back to Paris after living in China for a few years?
Since I have twin girls, I brought them along with me, and my husband is currently in China for a couple of months. Every morning, they inquire about my plans for the day, to which I explain in simple terms, but they are already familiar with the concept of a schedule. They recently drew a picture titled “Paddington 4 at the Great Wall” and asked me if I could forward it to Studiocanal so they can produce “Paddington 4 on the Great Wall”.
Are you planning to stay in France now?
Indeed, we’ve merely scratched the surface of the tale unfolding. It seems we’re embarking on a prolonged journey together. Therefore, I plan to persist here, witnessing and supporting the evolution of this company.
Has Canal+ brought on Bob Bakish, a seasoned Hollywood executive who was previously CEO of Paramount, as a new board member? Could this mean that Canal+ is considering investments in the United States?
Should an attractive prospect arise, we’d definitely consider it. However, it’s not our immediate focus right now. We’ve currently got numerous projects ongoing in Africa, which remains our main area of focus for development, and in Asia with Viu. Additionally, we’ve invested in Viaplay in Scandinavia. At present, we’re focusing our efforts on these three key investments.
I’ve heard ITV is on the market, is Canal+ interested?
I won’t be offering any opinions right now, but it’s evident that we have a full schedule ahead in the immediate future. Moreover, this is essentially free content, which isn’t our main focus. Rest assured, we remain committed to pay TV services.
Read More
- SUI PREDICTION. SUI cryptocurrency
- „People who loved Dishonored and Prey are going to feel very at home.” Arkane veteran sparks appetite for new, untitled RPG
- LDO PREDICTION. LDO cryptocurrency
- Destiny 2: A Closer Look at the Proposed In-Game Mailbox System
- Clash Royale Deck Discussion: Strategies and Sentiments from the Community
- Jennifer Love Hewitt Made a Christmas Movie to Help Process Her Grief
- ICP PREDICTION. ICP cryptocurrency
- Naughty Dog’s Intergalactic Was Inspired By Akira And Cowboy Bebop
- Critics Share Concerns Over Suicide Squad’s DLC Choices: Joker, Lawless, and Mrs. Freeze
- EUR IDR PREDICTION
2024-12-16 19:49