Media

Battle for future of France’s Le Monde paper


Inside the glass-panelled Paris headquarters of Le Monde, journalists are battling to prevent a Czech energy billionaire from wresting control of France’s iconic newspaper.

The deal designed to block Daniel Kretinsky is in the final stages of negotiations and follows months of discussions between shareholders, publisher and editorial representatives, Le Monde officials told the Financial Times.

Since Lazard banker Matthieu Pigasse unexpectedly sold 49 per cent of his stake in the publishing group that owns the daily newspaper to Mr Kretinsky in October, observers have voiced concerns about the Czech billionaire, whose assets include football club AC Sparta Prague, and his growing role in French media.

“I’m very suspicious of a foreign billionaire trying to get a foothold in the western establishment through the ownership of media, especially through a newspaper such as Le Monde, which sets the tone and agenda of news in France and beyond,” said François Godard, a European media and telecoms analyst at Enders Analysis.

These concerns have culminated in an attempt to stop Mr Kretinsky increasing his stake.

“The concerns are not specific to Daniel Kretinsky, it concerns any shareholder who might try to exercise direct or indirect control over Le Monde,” said Paul Benkimoun, president of the paper’s society of editors, who is involved in the negotiations.

The newspaper “is not a moneymaking machine for an investor. But it has a prestige, a notoriety and a visibility in France and abroad. It’s a powerful business card and we need to know that any investor upholds our values and ethics”.

Founded in 1944 at the request of General Charles de Gaulle after the liberation of Paris, Le Monde has established itself as France’s leading newspaper of record. When its main shareholders Mr Pigasse, telecoms billionaire Xavier Niel and Pierre Bergé, the French businessman who has since died, bought a controlling stake in Le Monde in 2010, it was on the verge of bankruptcy.

The trio, chosen as investors after 90 per cent of employees voted for them over a consortium backed by Nicolas Sarkozy, recapitalised the business and a “pole of independence” was established. This is a group representing Le Monde’s journalists, employees and readers, who between them own one quarter of the publishing group.

However, Mr Pigasse’s sale of slightly less than half of his stake — making about €50m from the disposal — has strained relations between him and Mr Niel. According to people familiar with Mr Niel’s thinking, he believes it was against the spirit of an investment designed to support a free press rather than to make money.

Battle for Le Monde: The newspaper has seen a turnaround under publisher Louis Dreyfus © Magali Delporte/FT

Neither Le Monde’s publisher, Louis Dreyfus, nor Mr Niel have yet met Mr Kretinsky. But together with the pole of independence, they are trying to structure a deal that would give it the legal right to approve any new controlling shareholder — or be able to veto it and suggest an alternative.

Mr Pigasse does not plan to sell the other 51 per cent of his holding, according to a person familiar with his thinking. However, Mr Kretinsky retains an option to buy it. “Kretinsky has never closed the door to buying 100 per cent of Pigasse’s stake,” said Denis Olivennes, chairman of CMI France, Mr Kretinsky’s holding company. “And it is logical that he would want to be represented on Le Monde’s supervisory board.”

As well as his energy investments, Mr Kretinsky created Czech Media Invest in his home country and last year bought several French titles from media group Lagardère, including the weekly Marianne, Elle, Télé 7 Jours, Ici Paris and France Dimanche. Mr Kretinsky wants to devote a part of his fortune to strengthening a professional press in Europe, said Mr Olivennes. “He is a Francophile and believes that France plays an important role in the fight against populism.”

Mr Olivennes added: “He has declared that he will respect absolutely the charter of independence of Le Monde.”

The negotiations over Le Monde’s future come as the newspaper is finally returning to profitability, with the number of digital subscribers having increased more than fivefold since 2010 to 180,000. Having lost money every year since the recapitalisation, in 2017 it turned a net profit for the first time since then. Mr Dreyfus said: “I hope we can resolve the shareholder agreement soon. Le Monde’s main asset is its editorial independence and we live or die by protecting that.”



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