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French billionaire Xavier Niel has bought Czech energy magnate Daniel Křetínský out of his stake in Le Monde, in a move that will advance Niel’s long-standing plan to put the newspaper’s ownership into a foundation to protect its future.
The approximately €50 million deal was privately agreed last month and will allow Křetínský to largely break even on its initial 2018 investment, according to people close to the case. An internal committee representing the left-wing daily’s staff has been notified, as required by French law.
After the Financial Times reported on Saturday that the deal had been completed, Niel’s holding company NJJ Presse confirmed that it had bought Křetínský’s stake and made an “irrevocable commitment” to transfer the shares to the foundation.
The transaction will strengthen Niel’s shareholding and bring him one step closer to the goal he set in 2021: placing a majority stake in a foundation to guarantee Le Monde’s independence and prevent takeovers.
It will also allow an exit for Křetínský, which has been on an acquisition spree in France with investments in food retailer Casino, electronics retailer Fnac-Darty and book publisher Editis. The Czech billionaire has also participated in an auction for the owner of the British newspaper Telegraph and Spectator magazine, the FT announced last week.
Founded in 1944 at the request of Charles de Gaulle after the liberation of Paris, Le Monde has established itself as France’s largest national newspaper with around 480,000 subscribers. For decades it was owned by its journalists and staff, but in 2010 it faced serious financial problems and sought help from outside investors.
A trio consisting of telecom billionaire Niel, businessman Pierre Bergé (who has since died) and investment banker Matthieu Pigasse intervened and recapitalized the company. To ensure that the newsroom would remain free from interference, they agreed to create a “pole of independence,” or a group representing Le Monde’s journalists, staff and readers, who together account for 25.4 percent of the own group.
The trio’s support has helped expand the newsroom and accelerate the growth of digital subscriptions. Annual revenue has hovered around €300 million since 2018, excluding a dip due to the pandemic in 2020, but profits fell to €10 million last year due to inflation and paper costs.
Křetínský’s involvement with Le Monde began in 2018 when he unexpectedly bought half of Pigasse’s stake for around €50 million. The investment sparked outrage among editors and journalists, who criticized Křetínský’s background in heavily polluting coal companies and argued that he could seek influence by owning a newspaper.
Before the Czech tycoon’s planned exit, around 72.5 percent of the company was owned by Niel, Křetínský, Bergé’s estate and Spanish media group Prisa, while Pigasse had a small residual stake.
In an interview with the FT last month, Křetínský spoke about the turbulence surrounding his arrival at Le Monde.
“We stepped into a door that we thought was open and everyone knew we were going to step in, and later we discovered that we had barged into the room without notifying people,” he said. “If you do this, you just know at that moment that it’s going to work against you. The negative reaction was completely natural.”
He added: “That led to this situation. . . which I now think has been corrected.”
Le Monde’s journalist group welcomed the news of Křetínský’s departure.
“Having been informed in advance as required by the articles of association,” the group “unanimously approves the purchase and transfer of the shares [to the foundation]”, they said. It “will lead to the departure of a shareholder who never sought the approval of our group”.
Křetínský’s media holding company IMI said in a statement that it would “continue to support the French media and guarantee their independence as a shareholder or as a lender.”
In France, Křetínský has hired media director Denis Olivennes and others to smooth over his image and lay the groundwork for further dealings. Before his investment in Le Monde, Křetínský had already bought several small magazine companies from media group Lagardère, including the political weekly Marianne and women’s title Elle.
He is now poised to expand into French book publishing with the impending acquisition of Editis, which Vivendi must sell as a condition of the Lagardère takeover.
Křetínský also has a 5 percent stake in France’s largest private television channel, TF1.
He is being considered as a possible bidder for 24-hour news channel BFMTV, which telecoms group Altice is considering selling to reduce its heavy debts, according to bankers.