-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DBjEKnJ4xnSmENtU76RoQVI4b+wC6qgGd5ZI8TxsBUn8xF11J8LMgXu5QWKosQvC JrMzNtzuKskEuDm3n/mRvQ== /in/edgar/work/0000898822-00-000743/0000898822-00-000743.txt : 20001016 0000898822-00-000743.hdr.sgml : 20001016 ACCESSION NUMBER: 0000898822-00-000743 CONFORMED SUBMISSION TYPE: 425 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20001013 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: SEAGRAM CO LTD CENTRAL INDEX KEY: 0000088188 STANDARD INDUSTRIAL CLASSIFICATION: [2080 ] IRS NUMBER: 000000000 STATE OF INCORPORATION: CA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 425 SEC ACT: SEC FILE NUMBER: 001-02275 FILM NUMBER: 739985 BUSINESS ADDRESS: STREET 1: 1430 PEEL ST STREET 2: H3A 1S9 CITY: MONTREAL QUEBEC CANA STATE: A8 BUSINESS PHONE: 5148495271 MAIL ADDRESS: STREET 1: C/O JOSEPH E SEAGRAM & SONS INC STREET 2: 375 PARK AVE CITY: NEW YORK STATE: NY ZIP: 10152 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: VIVENDI CENTRAL INDEX KEY: 0000920617 STANDARD INDUSTRIAL CLASSIFICATION: [4813 ] IRS NUMBER: 000000000 STATE OF INCORPORATION: I0 FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 425 BUSINESS ADDRESS: STREET 1: 52 RUE D ANJOU CITY: PARIS, FRANCE STATE: I0 ZIP: 75384 BUSINESS PHONE: 0113314924 MAIL ADDRESS: STREET 1: C/O COMPAGNIE GENERALE DES EAUX STREET 2: 52 RUE D'ANJOU CITY: PARIS STATE: I0 ZIP: 75384 FORMER COMPANY: FORMER CONFORMED NAME: COMPAGNIE GENERALE DES EAUX DATE OF NAME CHANGE: 19940321 425 1 0001.txt FORM 425 Filed by Vivendi Pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14a-12 under the Securities Exchange Act of 1934 Subject Company: The Seagram Company Ltd. Commission File No. 1-2275 and Subject Company: Canal Plus S.A. Commission File No. 82-2270 October 13, 2000 BRUCE HACK Vice Chairman Universal Music Group [VIVENDI UNIVERSAL LOGO] IMPORTANT LEGAL DISCLAIMER - - These documents contain forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations or beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The forward-looking statements contained in these documents address the following subjects: expected date of closing the merger; future financial and operating results; and timing and benefits of the merger. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: the risk that the Vivendi, Canal+'s and Seagram's businesses will not be integrated successfully; costs related to the merger; failure of the Vivendi, Canal+ or Seagram's stockholders to approve the merger; inability to further identify, develop and achieve success for new products, services and technologies; increased competition and its effect on pricing, spending, third-party relationships and revenues; inability to establish and maintain relationships with commerce, advertising, marketing, technology, and content providers. Investors and security holders are urged to read the joint proxy statement/prospectus regarding the business combination transaction referenced in the foregoing information, when it becomes available, because it will contain important information. The joint proxy statement/prospectus will be filed with the Securities and Exchange Commission by Vivendi, Canal+ and Seagram. Investors and security holders may obtain a free copy of the joint proxy statement/prospectus (when it is available) and other documents filed by Vivendi, Canal+ and Seagram with the Commission at the Commission's web site at www.sec.gov. The joint proxy statement/prospectus and these other documents may also be obtained for free from Vivendi, Canal+ and Seagram. Information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, is contained in the joint press release relating to the transaction filed with the Commission by each of Vivendi and Seagram, on June 20, 2000. [VIVENDI UNIVERSAL LOGO] AGENDA - Digital music opportunity - UMG digital strategy - Merger synergies [VIVENDI UNIVERSAL LOGO] GLOBAL INTERNET PENETRATION USERS IN MILLIONS
1999 2005 Digital TV 15 100 WAP & 3G Mobile 0 300 Internet PC 140 300 Console Games 0 45
Source: Broker Research [VIVENDI UNIVERSAL LOGO] DIGITAL OPPORTUNITIES
SALES/ PRODUCT MARKETING DISTRIBUTION ------- --------- ------------- CD Radio Retail Stores Physical TV Online Print e-Singles Viral Digital TV Digital Subscription Grassroots PC Streaming Portal Wireless Locked Marketing Content
[VIVENDI UNIVERSAL LOGO] DIGITAL MUSIC OPPORTUNITIES Wireless PCs Portals Products Channels Services Artists TVs PDAs Music Kiosks [VIVENDI UNIVERSAL LOGO] DIGITAL MUSIC THREATS PIRACY DISINTERMEDIATION MARGIN PRESSURE [VIVENDI UNIVERSAL LOGO] STRATEGY TO CAPTURE DIGITAL OPPORTUNITY THREE APPROACHES #1 Government and Copyright Law Legal Framework Litigation #2 Technology Standards SDMI Business Partners #3 Commercial Activities New Businesses [VIVENDI UNIVERSAL LOGO] LEGAL EFFORTS TO PROTECT COPYRIGHTS
CASE US LEGAL ACTION RESULTS MP3.com Major record companies Summary judgment in labels' sued MP3.com favor. Four labels settle and license in content. UMG litigates through damages phase and is awarded $25,000 per infringed CD.
[VIVENDI UNIVERSAL LOGO] LEGAL EFFORTS TO PROTECT COPYRIGHTS
CASE US LEGAL ACTION RESULTS Napster Major record companies Injunction granted against sued Napster service. 9th Circuit stayed injunction pending review. Europe Hit Box sued AOL AOL found liable for users AOL swapping pirated music on its Germany service.
[VIVENDI UNIVERSAL LOGO] CONTENT PROTECTION MUSIC INDUSTRY ROADMAP [CONTENT VEHICLE GRAPHIC] CD content protection roadmap Sep00 [VIVENDI UNIVERSAL LOGO] WATERMARK TECHNOLOGY HOW IT WORKS CD with Watermark [GRAPHIC] Compress to MP3 SDMI-compliant player content (screen for watermark) rejected [GRAPHIC] Compress to MP3 SDMI-compliant player bind content (detect legacy content) to PC CD without Watermark (legacy CD) CD content protection roadmap Sep00 [VIVENDI UNIVERSAL LOGO] NEW BUSINESS OPPORTUNITIES PRODUCTS AGGREGATION SERVICES CDs DVD CD2 Locked Content Downloads Streams Music Programs Subscription Lockers Jukeboxes Portals Channels [VIVENDI UNIVERSAL LOGO] US ONLINE MUSIC FORECAST (BILLIONS) - ---------- $6 $4 $2 0 1999 2000 2001 2002 2003 2004 2005
2000 2002 2004 ---- ---- ---- Forrester Research $1.4 $3.2 $4.3 Jupiter Communications $0.8 $2.3 $4.2
[VIVENDI UNIVERSAL LOGO] BLUEMATTER - DOWNLOADS CONSUMER ADVANTAGES - Legal - Multimedia - High Quality Music - Links - Easy to Find - Quality, Security, Privacy - Customer Care - Multi-access [VIVENDI UNIVERSAL LOGO] BLUEMATTER (Arrow Graphics) CONSUMER Download PC Locked Mobile [BLUEMATTER Content Phone GRAPHIC] Subscription Set Top Portals Kiosks [VIVENDI UNIVERSAL LOGO] LOCKED CONTENT ON CD [GRAPHICS] [VIVENDI UNIVERSAL LOGO] THE MOTOWN STORE Music and Associated Content [CD LOGO] [LOGO] Locked on a CD [VIVENDI UNIVERSAL LOGO] BLUEMATTER - LOCKED CONTENT Consumer Advantages - All of the benefits of downloads - Plus greater: - Convenience - Speed [VIVENDI UNIVERSAL LOGO] BROADBAND [GRAPHICS] [VIVENDI UNIVERSAL LOGO] [GRAPHICS] [VIVENDI UNIVERSAL LOGO] [GRAPHICS] [VIVENDI UNIVERSAL LOGO] [GRAPHICS] [VIVENDI UNIVERSAL LOGO] FARMCLUB.COM #1 Record Label #2 TV Program #3 Web Community [VIVENDI UNIVERSAL LOGO] [GRAPHICS] [VIVENDI UNIVERSAL LOGO] [GRAPHIC] [GRAPHIC] Limp Bizkit 98(DEGREES) [GRAPHIC] [GRAPHIC] Eminem Dr. Dre [VIVENDI UNIVERSAL LOGO] US DIGITAL MUSIC MARKET Jupiter Projection - 2005 [PIE CHART] a la carte Subscription Downloads (65%) (35%) [VIVENDI UNIVERSAL LOGO] STREAMING BASED SUBSCRIPTIONS Consumer Advantages - Most of the benefits of downloads - Plus greater: - Convenience - Variety - Speed - Simplicity [VIVENDI UNIVERSAL LOGO] [SONY LOGO] [UNIVERSAL LOGO] [VIVENDI UNIVERSAL LOGO] DISINTERMEDIATION "Music Companies Will Become More Relevant to Artists" Today + Tomorrow ----- -------- Support Marketing A & R New Business Marketing Security [VIVENDI UNIVERSAL LOGO] MARGIN EROSION "MARGINS WILL REMAIN HEALTHY" Lower Costs Pricing Direct to Consumers Value Added Offerings [VIVENDI UNIVERSAL LOGO] DIGITAL MUSIC OPPORTUNITIES Wireless Products PCs Services Artists Portals TVs Channels Music PDAs Kiosks [VIVENDI UNIVERSAL LOGO] MERGER BENEFITS FOR UMG - New business development - Greater speed - Lower cost - Higher effectiveness [VIVENDI UNIVERSAL LOGO] UMG [ARROW GRAPHIC] VIZZAVI LAUNCH ASSETS - UMG: - ARTISTS - E-BUSINESSES - E-COMMERCE - MUSIC SITES - VIZZAVI - MUSIC CHANNEL SYNERGIES - UMG - DOWNLOADS - SUBSCRIPTIONS - E-COMMERCE - PROMOTIONS - VIZZAVI - RAMP-UP - CUSTOMER COSTS - CONTENT COSTS [VIVENDI UNIVERSAL LOGO] SELECTED MERGER SYNERGIES IN MUSIC - I - - Downloads and subscriptions to vizzavi on PC - - Downloads transported via memory card to SFR mobile phones - - Downloads and subscriptions delivered wirelessly to vizzavi and SFR mobile phones - - Extension to Canal+ - - Completion of multi-access and peer-to-peer system [VIVENDI UNIVERSAL LOGO] UMG [ARROW GRAPHIC] VIZZAVI LAUNCH FINANCIAL BENEFITS SUBSCRIPTIONS - FOR EACH 500K CUSTOMERS > EUROS 15/MONTH > EUROS 23M EBITDA AT UMG CDS - RULE OF THUMB 100K PURCHASES > EUROS 10/CD > EUROS 1M EBITDA AT UMG VIZZAVI - RAMP UP 3 MONTHS FASTER > EUROS 17M REVENUE IN 2001 AT VIZZAVI [VIVENDI UNIVERSAL LOGO] SELECTED MERGER SYNERGIES IN MUSIC - II Locked content - In SFR subscription kits - On vizzavi CD's - On Canal set top boxes - By direct mailings [VIVENDI UNIVERSAL LOGO] LOCKED CONTENT [ARROW GRAPHIC] SFR, VIZZAVI, CANAL+ FINANCIAL BENEFITS CDS AND DVDS - FOR EACH 50M UNITS > 4% RESPONSE > EUROS 10M EBITDA AT UMG BASED ON OFFERING > INCREMENTAL EBITDA AT SFR, VIZZAVI, CANAL+ [VIVENDI UNIVERSAL LOGO] UMG [ARROW GRAPHIC] SFR Offering ASSETS - UMG - UNIVERSAL BRAND - MUSICAL CONTENT - SFR - WIRELESS NETWORK - DISTRIBUTION SYNERGIES - UMG - DOWNLOADS - SUBSCRIPTIONS - PROMOTIONS - SFR - CUSTOMERS - ARPU - CUSTOMER COSTS [VIVENDI UNIVERSAL LOGO] UMG [ARROW GRAPHIC] SFR OFFERING FINANCIAL BENEFITS SFR SUBSCRIBERS - FOR EACH 150K SUBSCRIBERS > EUROS 175/YR > EUROS 25M EBITDA AT SFR UMG FRANCE MARKET SHARE 1 SHARE POINT= EUROS 5M EBITDA FOR UMG [VIVENDI UNIVERSAL LOGO] SELECTED MERGER SYNERGIES IN MUSIC - III Portals - Roll-out in UK, France and Germany on vizzavi - "Tailoring" and roll-out in other European markets [VIVENDI UNIVERSAL LOGO] SELECTED MERGER SYNERGIES IN MUSIC - IV - vizzavi ISP on Universal Music CD's - GetMusic & FarmClub: vizzavi music service - UMG content in Vivendi products [VIVENDI UNIVERSAL LOGO] SELECTED MERGER SYNERGIES IN MUSIC - V - Internet Investment Program - Global Brand Management - Multi-content Kiosks - Music and: Education Flipside Sports [VIVENDI UNIVERSAL LOGO] LARRY KENSWIL President, eLabs Universal Music Group [VIVENDI UNIVERSAL LOGO] JIMMY IOVINE Co-Chairman, Interscope Geffen A&M Chairman & CEO, Farmclub.com [VIVENDI UNIVERSAL LOGO] [VIVENDI UNIVERSAL LOGO] [VIVENDI UNIVERSAL LOGO] -----END PRIVACY-ENHANCED MESSAGE-----