$8.5 Billion Bid For Universal Music Knocked Back

Universal Music Group's parent company Vivendi knocked back a $8.5 billion bid from Japanese group SoftBank about three months ago, according to the Financial Times.

According to people close to French giant Vivendi, which is undergoing a strategic review, the company knocked back the bid because they see Universal Music as a key company in their future plans. The all-cash bid has been estimated at $2 billion over the market value estimates of Universal.

According to the Times Vivendi appear likely to offload its telecommunications interests and hold onto its entertainment companies, that is their Universal ownership and majority stakes in video games company Activision Blizzard and French TV group Canal Plus.

Vivendi have told analysts that they expect improvements in Universal's profitability as they integrate EMI, which they bought for $1.9 billion last year.

Sony are similarly under pressure to divest, with activist shareholder Daniel Loeb pushing for the company to sell its entertainment divisions, which would include the music label.