Vivendi (XPAR:VIV, Financial): Third Point made an investment in Q1 in shares of Vivendi, the European media conglomerate. We were attracted by the industry-leading position of its crown jewel asset, Universal Music Group, and the announced separation of that asset as a standalone entity. Our upside calculation was underpinned by a sum-of-the parts analysis and an understanding of the company’s disparate assets. Third Point’s involvement was rumored in the press but in deference to our engagement with the company during a delicate time this Spring, we chose to keep our conversations about tax structure and corporate governance surrounding the spin private. We were pleased that Vivendi’s controlling shareholder, Vincent Bolloré, chose to take meaningful steps forward on governance for the new UMG entity, including commitments for an independent board and the equal treatment of shareholders. We believe these steps eased investor concerns about UMG’s corporate governance that may otherwise have created an overhang in the stock, contributing to UMG’s successful listing in late September.
From Daniel Loeb (Trades, Portfolio)'s Third Point third-quarter 2021 letter.
