Vivendi to Remain Bullish after Defamation Case against Mediaset

VivendiVivendi SA (OTC: VIVHY) which is a favourite media content provider has reported a dip in the revenue from continuing operations in the fourth quarter of fiscal 2016.

After considering the efforts taken by the Canal Plus which is a subsidiary of the company to regain the market shares and better than expected quarter 4 2016 adjusted income of 755 million Euro or 0.54 Euro per share, we recommend all the traders invest in a call option on 8th March.

Then, the stocks of the company were trading about $17.50, and it closed at $18 a week later which in turn resulted in a profit in the recommended trade.

In the latter part of March month, Italy’s Mediaset and France’s Vivendi have filed a defamation case against each other in a controversy related to a deal failure for pay TV channel Mediaset Premium. However, we are of the opinion that Vivendi’s stocks will remain bullish in the future and the reason for the same is discussed below.


Vivendi signed a deal worth 880 million pounds to acquire 3.5% of Mediaset, and it fell apart in July last year. After when the deal collapsed, a huge amount of tension started brewing between the Chairman of Vivendi Vincent Bollore and Mediaset’s founder Silvio Berlusconi with 40% stake.

The objective of the deal was to establish a media powerhouse in Southern Europe. Apart from that, Vivendi was looking forward to taking the competition from Sky by its head. If the deal were successful, Vivendi would have been able to negate the threats from Netflix that offers online streaming media services. With the failure of the agreement with Mediaset, all hopes and desires of Vivendi got washed away.

The Chief Executive of Vivendi Arnaud de Puyfontaine made a statement last week where he has said about the failure of finding a possible solution to the dispute. He further noted that the company was provided with falsified and misleading information at the time talks about the deal was going on. According to Mediaset, Vivendi inked the agreement only after performing the due diligence for a month.

Vivendi filed a defamation suit last Tuesday against Mediaset which was countered by later filing a defamation suit against Vivendi in the same court. Mediaset filed the case only after Vivendi accused the company of providing false and misleading information. This alarming news pushed the prices to share by 30 cents to $18.14 on 22nd March 2017.

But the stocks were able to recover by crossing the figure of $19. One of the most important reasons for the recovery of Vivendi was because of the expectation of good performance by the company in fiscal 2018 first quarter. The company is making efforts to regain the lost paid subscribers to its Canal Plus Channel, and the market is optimistic that it will see better results in the present quarter.

Deutsche Bank after considering the growth prospects has issued a target price of $23.91 last Thursday with the stocks currently featuring “BUY” rating. Last Friday, BNP Paribas also filed a suit with a target price of $22.83 for the stock. Based on the information mentioned above, we can expect for a short-term bullishness in the stocks for the coming time.

The stocks of Vivendi is at the resistance level of 18.90 with the next significant resistance level at 20.35. The Chaikin money flow indicator is above zero line. The stocks of the company are moving at an average of 18.42 based on 32 days figure. This gives a strong indication that money is flowing back to the share.

Vivendi Stock Price-April 5th 2017

Vivendi Stock Price-April 5th 2017

So, it would be a wise decision if you invest in a high or above contract. You should BUY the Option with a validity period of 1 week, and you are recommended to BUY it from an approved broker when the stock is trading around 19.30.

Rich Archer

Rich Archer

Hi, my name is Rich Archer. I am living in London. Welcome to Binary Manual. Reach to Binary Options broker reviews and market news here.

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