USA Networks just the start for Vivendi

LONDON - Vivendi's proposed takeover of USA Entertainment, a division of USA Networks, could just be the tip of chief executive Jean-Marie Messier's plan to expand into the prized US market.

However, the deal will give him only a toe-hold in the US market with a long way to go before Vivendi is able to achieve its goal of using every possible platform to distribute its content around the world.



Messier confirmed on Tuesday that he is in talks with USA Networks about buying its entertainment arm, which owns cable channels including the Sci-Fi Channel and production companies Studios USA and USA Film.



It is expected that, if the acquisition goes ahead, the studios would be folded into Universal Studios, which Vivendi acquired last year in its takeover of the Seagram drinks giant. However, the cable channels could provide important distribution media for Vivendi content.



The deal would form a very small part of Messier's much grander aim, which is to flood the world's consumers with Vivendi content using every possible platform, and goes only a little way in helping fulfil Messier's ambition.



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