Vivendi rejects US$8.5b SoftBank bid for Universal

SoftBank made a US$8.5 billion bid for Vivendi's Universal Music division that the French media firm rejected, according to people informed about the proposal.

Directors at Paris-based Vivendi turned down SoftBank shortly after the inquiry was made, said the people, who asked not to be identified.

A deal would have handed the record company to the Tokyo-based carrier that its founder, billionaire Masayoshi Son, wants to turn into the world's largest mobile communications company.

SoftBank, which had its credit rating cut to junk on Thursday after completing its US$21.6 billion acquisition of a controlling stake in Sprint, is pursuing deals outside its home market to tap faster growth.

Japan's third-ranked wireless carrier may be seeking to cut its reliance on services like Apple's iTunes by providing its own music, said Tomoaki Kawasaki, an analyst at Iwai Cosmo in Tokyo.

"SoftBank is an internet communications company, so it's also making money from content," Kawasaki said. "The attempt to buy the music business is part of that. It was unfortunate it didn't work out this time, but Son should have something up his sleeve, even with the downgrade."