Is Vivendi Universal Entertainment seeking a monopoly in the movie industry?

No

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by Kasmak

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Vivendi Universal, now known as Vivendi SA, was created by the merger of three major corporations: Vivendi, Canal+ and Seagram Holdings, Ltd in 2000. This created a global company with assets in all forms of media including motion pictures, television, music, video games and internet entertainment. The company is also involved in telecommunications and water privatization. In recent years, they've reported sales over $30 billion and employ over 37,000 individuals.

Initiall y, after the merger Vivendi acquired companies located in markets across the globe positioned in all facets of entertainment and media. However, in subsequent years, to avoid bankruptcy, Vivendi has sold off many of its assets or a major controlling share of those holdings. While Vivendi is still positioned well within their respective industries, they have yet to approach a monopoly standing. Rather, they've been attempting to create market share that rivals the competition.

I don't believe anyone can say that Vivendi is striving for a monopoly position within any industry. They seem to merely have a desire to compete while recovering from mistakes made in earlier years. Another point to consider is they are based within France. This is a country that in recent times has vehemently opposed any company approaching a monopoly position. Cases in point: look at the struggles Apple and Microsoft have had within France and the European Union.

Vivendi is once again starting to acquire more companies, at a decelerated rate from previous years, such as music giant BMG and Matsushita's stake in NBC Universal. These moves will only reposition the media giant, helping them to recover lost market share from prior sales and spinoffs. Given the climate within the European Union and France, it would be foolish of them to attempt anything more. I believe Vivendi is quite aware of this given the nature of their strategic movements. They make plays for one or two small competitors within an industry or a single major player.

Many conglomerates throughout the world have shown they have no fear of monopoly and anti-trust investigations as the profits from mergers and acquisitions out perform any fines and expenditures from those proceedings. Vivendi has managed to steer away from any such actions with the exception of the merger in 2000. Of course, in the future, this company could take steps to place it within the crosshairs of investigators. However at this point in time I don't believe they are pursuing any strategy that moves them in that direction.

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