In a decisive gathering on Monday, shareholders of French media giant Vivendi sanctioned a controversial plan to dismantle the company, a move that has been strategically supported by the Bollore family, which holds substantial control over the enterprise. Despite facing skepticism from the market and comprising substantial opposition from minority shareholders, the proposed breakup received a staggering endorsement, with over 97% of the votes favoring the resolution. This overwhelming approval highlights the clout of the Bollore family, particularly that of billionaire Vincent Bollore, who has been at the center of various allegations concerning the manipulation of media for political agendas.
The decision did not come without its share of dissent—demonstrations erupted outside the meeting venue, sparking the intervention of the CRS, France’s specialized crowd-control police unit. Groups of more than 100 organizations rallied under the banner “Disarm the Bollore Empire,” alleging that the media mogul was exploiting his influence to endorse far-right narratives in France. Such protests underscore the polarizing nature of the Bollore family’s control over Vivendi and the broader apprehensions regarding media ownership and political allegiances in contemporary society.
The restructuring plan entails spinning off key operations including Canal+, Havas, and Louis Hachette Group into independent companies, a strategic maneuver believed to enhance shareholder value. Canal+, which will establish its primary operations in London, will maintain its headquarters in France, while the advertising giant Havas will make its debut on the Amsterdam exchange. The publishing powerhouse Louis Hachette Group will trade on Euronext Growth in Paris. This unique arrangement aims to streamline operations and potentially attract new investors, with trading for these newly formed entities scheduled to commence on December 16.
In an interesting twist, shareholders will receive shares in each new entity on a one-to-one basis, indicating a robust attempt to maintain investor confidence in the aftermath of the split. Leading financial analysts, including those from JP Morgan, have appraised Canal+ at a valuation of approximately 6 billion euros, with Havas and Louis Hachette Group valued at 2.5 billion euros and 2.2 billion euros respectively.
Despite the robust approval from the majority, minority shareholders such as CIAM and Phitrust have publicly denounced the split, arguing it consolidates the Bollore family’s dominance and hampers fair governance within Vivendi. CIAM confirmed intentions to pursue legal action against the split, challenging the credibility of the decision-making process. Yannick Bollore, the chairman and Vincent’s son, dismissed such claims, emphasizing the long-term vision for the company and the operational strategy that would ultimately benefit shareholders over time.
Following the shareholder meeting, Vivendi’s stock saw a notable uptick, rising approximately 2.4%, signaling investor optimism about the future of the conglomerate. The significant increase in trading volume reflects a positive market reaction to the decision, although the undercurrents of dissent and skepticism persist. In navigating this contentious landscape, Vivendi and the Bollore family are now faced with the challenge of managing both investor expectations and societal scrutiny as they embark on the next chapter of this high-profile corporate transformation.