The recent decision by French media giant Vivendi to undergo a significant restructuring has sparked a mixture of enthusiasm and skepticism among market observers and investors alike. This corporate maneuver aims to separate major entities like Canal+, Havas, and the Louis Hachette Group into distinct firms. While the Bollore family, Vivendi’s primary shareholders, may believe this split positions the company for greater individual growth, the backlash from minority shareholders indicates deeper concerns regarding potential monopolistic trends and governance issues.
Market Reactions and Shareholder Support
In an extraordinary general meeting convened in Paris, the restructuring plan faced a high level of support, with over 97% of shareholders approving the split. However, the magnitude of this endorsement could be overshadowed by the protests outside, where over 100 organizations rallied against the Bollore family’s increasing influence. The event raised eyebrows about the underlying implications of such a major shareholder action, hinting at broader societal tensions surrounding ownership and influence in the media landscape.
Yannick Bollore, the chair of Vivendi’s supervisory board, attempted to quell concerns about possible political agendas, firmly stating that the separation is not a ploy for greater control. He emphasized his long-term vision for the individual entities and the strategic rationale underpinning the breakup, yet skeptics question whether this truly addresses the unease surrounding the Bollore family’s power dynamic within Vivendi.
As the new organizations prepare for stock market launches on December 16, preliminary valuations by JP Morgan indicate Canal+ might be valued at approximately €6 billion, while Havas and Louis Hachette Group could be valued at €2.5 billion and €2.2 billion, respectively. This division of assets may appear promising on the surface; however, investors must be cautious and consider whether this breakup will indeed unlock true value or merely concentrate the Bollore family’s grip on Vivendi.
The strategic positioning of Canal+ in London, Havas in Amsterdam, and the publishing arm in Paris could allow each entity to leverage regional strengths. Yet, there lies a pertinent question: will the split lead to increased market competition or simply solidify the Bollore family’s dominance across these markets?
Market sentiment following the approval showed a positive surge, with Vivendi shares rising by as much as 2.4%. This reaction suggests some level of confidence among investors regarding the potential success of the restructuring plan. However, concerns raised by minority shareholders such as CIAM and Phitrust—who argue that this move consolidates power rather than fostering a competitive and diverse media landscape—cannot be overlooked. Their ongoing legal proceedings signify the potential for turbulence in the months ahead.
Vivendi’s decision to fracture into separate entities represents a bold yet risky strategy within an evolving media environment. The success of this restructuring will depend on how well each entity can navigate its individual challenges without the holistic support of the larger conglomerate. Only time will determine if the Bollore family’s vision aligns with long-term shareholder interests or if minority voices are left unheard in this transformative process.