Vivendi SE is considering splitting up its media and entertainment empire into several companies to better take advantage of each unit’s strength.Since listing Universal Music Group two years ago, the French company said it has “endured a significantly high conglomerate discount,” reducing its valuation and limiting growth opportunities for its subsidiaries, according to a statement on Wednesday. Vivendi’s American depositary receipts jumped 9% in New York.

A separation would “unleash the development potential” of all its activities, Vivendi said, and be structured around three businesses: film and TV production arm Canal+; advertising and communications branch Havas; and publishing group Lagardère, which are seeing strong growth marked by ‘numerous’ investment opportunities.

Investors have been watching to see whether French billionaire Vincent Bolloré — Vivendi’s controlling shareholder, who’s been likened to fellow media mogul Rupert Murdoch — tries to raise his stake in the company to win greater control over the media business and take it in new directions. The 71-year-old had already started reshaping Vivendi through the 2021 initial public offering of Universal Music.

Known as a ruthless corporate raider, the media mogul worked to internationalise his media group over the past decade. Since taking control of Canal+ about eight years ago, Bolloré has made the once-struggling unit a Netflix-like platform by acquiring rivals in Europe, Africa and Asia.

Havas also has an international footprint, with an outsize presence in the US. Vivendi has been focused in the past year on finalizing its acquisition of media rival Lagardere, which owns Hachette, the world’s third-largest publishing house, and a global travel retail business.

If the split goes through, Bolloré has a war chest to pursue further operations as a controlling shareholder of various media groups after his family holding, Bollore SE, divested its transport and logistics business.

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