Vivendi shares climbed 7 percent in early trading. The stock was the best performer on France's benchmark CAC-40 index, which was up 0.7 percent.

Late on Thursday, Vivendi reported higher earnings, helped by growth at the UMG division. Vivendi also said Vincent Bollore, Vivendi's number one investor, would be replaced by his son Cyrille in April on the company's board.

Vivendi's core 2018 operating profit jumped about 25 percent to 1.29 billion euros (£1.14 billion), mainly on UMG's strong performance.

UMG's soaring profits are the key driver of Vivendi's stock and have fuelled market speculation about Bollore's plans for the division. The group confirmed it wanted to sell up to 50 percent of UMG, which analysts value between 20 to 40 billion euros, to one or several strategic partners.

"It's those expectations of a cash return for shareholders on the back of UMG that is propping up Vivendi on the stock market in the short-term," said Roche Brune Asset Management fund manager Gregoire Laverne.

JP Morgan analysts echoed that view, keeping an "overweight" rating on Vivendi shares. "UMG's organic growth and margin comfortably beat our expectations," JP Morgan wrote in a note.

(Reporting by Sudip Kar-Gupta; Editing by Edmund Blair)

By Sudip Kar-Gupta