CanalSat, TPS Merger Receives French Clearance

PARIS, August 31: France's Minister of the Economy, Finance
and Industry has authorized the merger of French pay-TV platforms CanalSat and

Lagardere is joining Vivendi, TF1 and M6 in the merged
Canal+ France venture, taking a 20-percent stake with an option to increase
that stake to 34 percent in three years.

Following the CanalSat and TPS merger, Canal+ France will
still be controlled by Vivendi through its Canal+ Group, which holds a
65-percent stake. Lagardere follows with 20 percent, and then TF1 with 9.9
percent and M6 with 5.1 percent. The deal is expected to close later this year.

Vivendi said in a statement that the French clearance was
“an important step in Canal+ Group's development as it creates an opportunity
to build a significant French player in the film and TV segment, capable of
competing with major foreign media companies and telecoms operators. The new
entity will help give fresh momentum to the French television and film market.
Thanks to greater investment in high-quality and exclusive TV and film
programs, consumers will benefit from a more extensive, diversified and
attractive offering.”