The recent shareholder approval for Vivendi’s strategic breakup marks a significant turning point for the French media giant. Supported overwhelmingly by the Bollore family, this bold decision is set to unravel the conglomerate’s structure, carving out distinct entities for Canal+, Havas, and Louis Hachette Group. The 97% approval rate is a clear indication of the backing from major stakeholders, albeit not without dissent and skepticism from minority shareholders concerned about the implications of such a move.
The Breaking Point: Opposition and Protests
While the decision received overwhelming support, it did not come without its challenges. Outside the extraordinary general meeting in Paris, protests erupted, spearheaded by more than 100 organizations under the campaign “Disarm the Bollore Empire.” These groups accused Vincent Bollore, the influential billionaire behind the conglomerate, of leveraging his media empire to bolster far-right ideologies in France. The tension escalated to the extent that the French police’s crowd-control unit, CRS, had to be deployed to manage the protests. This scenario indicates an underlying unease regarding the Bollore family’s influence over media narratives in the country.
The restructuring will allow Vivendi’s divisions to operate independently on stock exchanges, notably with Canal+ set to list in London and Havas in Amsterdam. The decision to float the Louis Hachette Group on Euronext Growth in Paris further diversifies the company’s footprint in the European media landscape. Each existing shareholder will receive shares in the new companies, symbolizing an effort to reward loyalty while maintaining a connection to the parent company. However, the valuation of the spun-off entities—6 billion euros for Canal+, 2.5 billion for Havas, and 2.2 billion for Louis Hachette—raises questions about the feasibility and effectiveness of the initial strategy.
Minority Shareholders: A Voice of Dissent
Critics among minority investors, exemplified by CIAM and Phitrust, have raised concerns that the breakup could consolidate the Bollore family’s grip over Vivendi rather than dilute it. The family already holds a commanding 29.9% stake, and opponents argue that this restructuring could entrench their power further. CIAM has indicated that their legal challenge against the split will persist, reflecting ongoing tensions between the influential family and smaller stakeholders.
In the wake of the extraordinary general meeting, Yannick Bollore, the chairman, expressed confidence in the long-term potential of the breakup. He emphasized that he intends to work assiduously over the next year to demonstrate the success of this initiative. Following the approval news, Vivendi shares experienced an uptick of around 2.4%, indicating some market optimism regarding the future of the unbundled entities.
While the newly formed entities aim to offer fresh perspectives and opportunities in the media landscape, the broader implications of this restructuring, particularly in relation to shareholder equity and media influence, will need to be monitored closely as Vivendi embarks on this ambitious journey.