For a while there it looked like satellite TV operator DirecTV (NASDAQ: DTV) might end up writing a rather large check to Vivendi to pay for the French media company’s Brazilian unit, GVT. But DirecTV pulled the plug on a bid last night and investors have pushed the stock up about 6% today.
Vivendi had been seeking around $9 billion for its Brazilian unit and DirecTV was believed to be offering less than $8 billion. An even lower bid from a consortium of buyers led by KKR was the only offer left after DirecTV pulled out.
It seems that Vivendi has a much higher opinion of its properties than potential buyers do. The company tried to unload its 61% stake in Activision Blizzard Inc. (NASDAQ: ATVI) last year and found no takers for that offer either. Vivendi wants out of the capital intensive telecom business and would like to focus on pay TV and music, both low-cost and potentially high-reward businesses. No luck so far though.
DirecTV’s shares are up about 6% at $55.76 shortly after noon today after equalling its 52-week high of $56.48 earlier. The current 52-week range is $42.87 to $56.48.