EU Approves Vivendi-Seagram Deal

B R U S S E L S, Belgium, Oct. 13 -- European Union regulators cleared the $30 billion media deal between France’s Vivendi andCanada’s Seagram today after the companies agreed to addressantitrust concerns about Europe’s pay-TV market.

The deal brings together Vivendi’s European cable TV, satelliteand Internet distribution systems and Seagram’s interests inHollywood and music, Universal Studios and Universal Music Group,to create a global media conglomerate called Vivendi Universal.

Sale of TV Stake Helped ApprovalThe European Commission, the executive arm of the EU, said Vivendi had agreed to sell its 20percent stake in British pay-TV group British Sky Broadcasting helping to secure clearance. BSkyB is a unit of RupertMurdoch’s global media conglomerate News Corp., which also owns acompeting Hollywood studio, Fox.

“Vivendi offered substantial undertakings to address thecompetition problems, notably to divest its stake in BSkyB and togive rival pay-TV operators access to Universal’s films,” theCommission said.

Vivendi gave a five-year commitment to share TV rights toUniversal movies in France, Belgium, Italy, the Netherlands, Spain,Denmark, Sweden and Finland, where the Commission had concernsabout the new company’s power in film distribution.

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The French company also offered to give rivals to its VizzaviInternet portal access to Universal’s online music content, theCommission said.

Following Vivendi’s commitment to sell its stake in BSkyB, theCommission said it may have to examine a proposed joint-venturelinking Universal with Paramount.

Decision Expected EarlierA decision from the EU antitrust authorities had been expectedlast July. However, it was deferred while the companies allayedconcerns that Vivendi’s pay-television unit, Canal Plus, would haveunfettered access to Universal movies.

The deal has already been cleared in the United States by theFederal Trade Commission. It has also passed one of the threeregulatory bodies it needs to pass in Canada, and French regulatorshave also given their consent.