FRENCH WATCHDOG BITES AT VIVENDI-SEAGRAM DEAL
"The CSA plans to examine all the consequences of this operation, as it is outlined, on the audiovisual and program-making industries," the CSA said in a statement.
The agency said the inquiry will look at whether the shareholding structure of the new group and its separation of production and broadcasting activities in France conforms with French regulations that allow a single shareholder to own no more than 49% of a national broadcast network.
Under terms of the Seagram merger, the new group, Vivendi Universal, will own 100% of Canal Plus' production and distribution subsidiaries, while the broadcaster will be spun off into a separate structure that will remain 49%-owned by the parent.
Herve Bourges, president of the CSA, said one matter to be studied will be the fact that Canal Plus, as a broadcaster, will no longer have control of its subscriber base, which will be completely controlled by Vivendi Universal, said The Hollywood Reporter. "We will not pronounce on a given operation until we know the precise and definitive details," Bourges said.
However, Bourges used a speech in Paris presenting the organization's annual report to welcome the French takeover of the Canadian beverage and entertainment giant. He said it was a reply to "Cassandras who thought that French media companies were condemned to stay within national boundaries."
The probe, which has set no deadline for reporting its findings, will also look into whether Canal Plus will maintain its current financial backing for French film and television production, a CSA spokeswoman said. Canal Plus is the single biggest source of financing for the French film industry, investing more than 900 million francs ($125 million) last year.
