On a pivotal day for the French media giant Vivendi, a considerable majority of shareholders endorsed a significant restructuring plan proposed by the Bollore family. The decision, which involves spinning off key assets such as Canal+, Havas, and the Louis Hachette Group, faced a wave of skepticism from the market and discontent from minority shareholders. Over 97% voted in favor during the extraordinary general meeting held in Paris, indicating that the Bollore clan retained robust influence over the company. However, such overwhelming approval came against a backdrop of protests outside the venue. Activists rallied under the banner “Disarm the Bollore Empire,” voicing concerns over the family’s influence in media and its alleged support for far-right ideologies in France.
As the restructuring unfolds, the various divisions will find new homes in international stock markets. Canal+, the broadcasting arm, is set for a London listing while maintaining its headquarters in France. Havas will transition to a platform in Amsterdam, and Louis Hachette Group, which manages Vivendi’s publishing ventures, will debut on Euronext Growth in Paris. The new entities are on track to start trading by December 16, creating distinct pathways for growth and accountability separate from the parent company.
Valuation estimates provide a snapshot of the financial ambitions underlying this split. Canal+ is pegged at an impressive 6 billion euros ($6.3 billion), while Havas and Louis Hachette Group are valued at 2.5 billion euros and 2.2 billion euros, respectively. These figures hint at the potential market impact of these companies individually, presenting opportunities for shareholders and investors alike. On the other hand, the nature of their spin-off raises pressing questions regarding the future governance of these entities and the extent of the Bollore family’s oversight moving forward.
Dissent has brewed among minority shareholders, with organizations like CIAM and Phitrust voicing their opposition to the proposed breakup. Their contention centers around concerns that the restructuring would further consolidate the Bollore family’s already considerable power—holding a 29.9% share in Vivendi— thus potentially jeopardizing the interests of minority investors. CIAM has signaled its intent to pursue legal action against the restructuring, suggesting that the path forward may not be as straightforward as stakeholders hope.
Looking Ahead: Long-Term Vision or Short-Term Gain?
During the shareholders’ meeting, Yannick Bollore—a prominent figure in Vivendi’s operations—defended the restructuring plan against allegations of increased control by his family. He emphasized a long-term strategy aimed at establishing separate identities for the new companies while dispelling worries about consolidated power. Bollore acknowledged the critical upcoming months where results will need to validate the shareholders’ leap of faith in the split. Following the vote, a notable surge in Vivendi’s share price emphasized market optimism, albeit tempered by significant uncertainties.
As this corporate saga unfolds, it remains to be seen whether the restructuring will yield the intended benefits, or if the clouds of controversy will linger over Vivendi and its newly formed subsidiaries.