Viacom: no VUE bid

net1

World's biggest media company Viacom has opted out of the bidding for Vivendi's US entertainment arm. The company, which has been only interested in obtaining Vivendi's cable television properties - USA Networks and the Sci-Fi channel -, declined to bid after Vivendi told suitors that they must make an offer for VUE in its entirety.

Vivendi received five bids for VUE, but according to French newspaper Le Figaro the offers for VUE had come in "at or below" $10 billion, on the low side of Vivendi's expectations. The bids were forecast worth $12-$15 billion.

From the five bidders - General Electrics, MGM Studios, Liberty Media and two financial consortiums led by Marvin Davis and Edgard Brofman respectively - two or three will be chosen next week at Vivendi's board meeting.

Viacom, however, is watching the process closely and could re-emerge either by partnering with another group or if Vivendi changes course and opts to sell the unit in pieces.

The Davis and Bronfman consortiums are believed to have submitted offers that include Universal Music, which is technically outside the VUE partnership.