20/03/2003 - After just nine months as CEO of VUE, Diller exits but is said to be interested in buying up some of VU’s American assets

Barry Diller announced he was resigning as the CEO of Vivendi Universal Entertainment, (VUE), the American arm of troubled French media giant Vivendi Universal, and fed the rumours that VU were about to sell off their US assets in order to reorganise the Canal+ Group and concentrate on France.
Appointed by Jean-Marie messier when VU bought Diller’s USA Networksfor in December 2001, Diller was head of VU’s American arm which included Universal Studios, the music, TV, homevideo and leisure part activities. In the interim, Diller will be replaced by current VU CEO, Jean-René Fourtou. Diller maintains his position as CEO of USA Interactive which has a 5.4 per cent stake and stock in VUE while Diller himself owns 1.5 per cent of VUE and will therefore be in a position to influence the future of VUE which VU is hoping to sell off for some much-needed cash. Diller’s 2001 contract included financial guarantees to the tune of $2b should VU divorce from USA Interactive and this clause will undoubtedly complicate negotiations that the French media giant has tabled with interested buyers like Viacom, or oil tycoon Marvin Davis, whose $20b bid for VUE’s theme parks, film studios and music division was rejected. Universal Studios are probably the most appetising item on the VUE menu and it is possible that Vivendi Universal will sell this asset off separately, possibly to Barry Diller himself. It remains to be seen how this situation affects VU’s European position.

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(Translated from French)