Title: Xavier Niel’s Plan to Safeguard Le Monde’s Independence through Foundation Ownership
Introduction:
In a recent move, French billionaire Xavier Niel is set to increase his stake in Le Monde, the largest national newspaper in France, to over 40% by establishing a foundation. The newspaper’s CEO, Louis Dreyfus, emphasized the need for governance reform to safeguard the publication’s independence, preventing takeovers and protecting editorial interference. As media ownership by billionaires continues to raise concerns in France, this initiative aims to assure readers of Le Monde’s commitment to unbiased coverage and prevent undue influence.
The Issue of Media Independence in France:
France faces a pressing issue of media independence, as major media outlets are owned by billionaire industrialists who also control significant French companies. This concentration of ownership has sparked controversies, such as the revolt at the Journal du Dimanche over the appointment of a far-right editor, and the intervention by Bernard Arnault in the removal of Les Echos’ director. Le Monde, being a critical voice in French journalism, seeks to address these concerns by ensuring that its independence is not compromised.
The Background and the Need for Transformation:
Founded in 1944, Le Monde has historically been largely run by its journalists, with some external investors. However, the newspaper faced financial difficulties in 2010 due to high debt and structural losses caused by the digital transition. Niel, along with Pierre Bergé and Matthieu Pigasse, stepped in and pledged 110 million euros to recapitalize the business. They also made promises regarding governance reforms and established an “independence hub” to represent the interests of Le Monde’s journalists, staff, and readers.
Xavier Niel’s Commitment to Editorial Independence:
Xavier Niel has consistently emphasized the importance of editorial independence in the media outlets he owns. He wants the editorial team at Le Monde to be as independent as possible, not just in theory but in practice. Niel’s creation of a permanent foundation to house his stake in Le Monde demonstrates his commitment to ensuring that opinions and interests do not compromise the integrity of the newspaper’s reporting.
The Role of the Foundation:
The establishment of the foundation acts as a protective shield for Le Monde. Once the shares are transferred to the foundation, they no longer belong to Niel and cannot be sold. This arrangement ensures that Niel, or any other stakeholder, cannot interfere with the newspaper’s affairs for personal gain. The foundation will ultimately hold just over 70% of the shares, excluding any unwanted stakeholders and reinforcing the independence of Le Monde’s editorial team.
Expanding Le Monde’s Offering and Digital Reach:
Under the leadership of Niel and his co-investors, Le Monde has not only focused on safeguarding its independence but also on transforming its business model. The newspaper has diversified its offerings by introducing podcasts, videos, and a weekend magazine. Moreover, it aims to expand its English-language content to capture 15% of digital subscribers from outside France within five years. These efforts demonstrate Le Monde’s commitment to remaining relevant in the digital age.
Assuring Readers of Editorial Freedom:
The editorial team at Le Monde has expressed confidence in the intentions and actions of Niel and his co-investors. They appreciate the absence of interference in their work and acknowledge the substantial growth in the number of journalists. Le Monde’s profitability has also improved, with digital subscriptions becoming a significant revenue source. Overall, the newspaper has kept its promises to strengthen the editorial team, stabilize the business financially, and protect editorial independence.
Conclusion:
Xavier Niel’s plan to establish a foundation and increase his stake in Le Monde demonstrates a commitment to preserving the newspaper’s independence and protecting against undue influence. As media ownership by billionaires raises concerns in France, such initiatives are vital in assuring readers that Le Monde’s editorial team is independent and unbiased. The successful transformation of Le Monde’s business model and the expansion of its offerings demonstrate a dedication to adapt to the evolving media landscape while maintaining its journalistic integrity.
—————————————————-
| Article | Link |
|---|---|
| UK Artful Impressions | Premiere Etsy Store |
| Sponsored Content | View |
| 90’s Rock Band Review | View |
| Ted Lasso’s MacBook Guide | View |
| Nature’s Secret to More Energy | View |
| Ancient Recipe for Weight Loss | View |
| MacBook Air i3 vs i5 | View |
| You Need a VPN in 2023 – Liberty Shield | View |
Xavier Niel is on track to place more than 40% of Le Monde in a foundation by the end of the year, the newspaper’s chief executive said just days after the billionaire bought out Czech energy tycoon Daniel’s stake Křetínský in the largest French national newspaper.
Louis Dreyfus, appointed chief executive of Le Monde Group by Niel and his co-investors in 2010, said that governance reform – aimed at preventing takeovers and protecting editorial interference – was necessary to ensure readers that reliance on one rich owner does not compromise the title coverage.
“There is a general distrust towards institutions and the powerful. . . it’s not just about the “billionaires” who own the media, Dreyfus told the Financial Times. “We must reassure our readers that not only is our development happening – and we needed significant shareholders to transform the economic model – but that it is being carried out with complete independence.”
The Financial Times reported at the weekend that Niel had done so bought Křetínský shares for around 50 million euros, putting an end to a period of discomfort in the editorial offices triggered by the unexpected acquisition by the energy magnate of his pole in 2018. Křetínský recognized that the situation was not working in an an interview with the FT.
Jérôme Fenoglio, editorial director of Le Monde, said the editorial team welcomed Křetínský’s departure and called Niel’s plan to invest in the foundation “good news”.
Speaking about Křetínský he said: “If we start badly with a shareholder, someone who . . . they didn’t tell us their intentions until they were already in our capital, how do you build trust? It didn’t work from the beginning.”
Křetínský’s exit and the transfer of an increasing number of shares into the foundation means that “it will no longer be possible to have to endure an arrival that we do not want in our capital”, added Fenoglio.
The issue of media independence is acute in France, where major media outlets, including the largest private broadcaster TF1, the newspaper Le Figaro and the news channel BFM, are owned by billionaire industrialists who control some of the most large French companies.
More recently, conservative billionaire Vincent Bolloré created a spark a revolt at the Journal du Dimanche with the appointment of a far-right editor, and Bernard Arnault of LVMH He was charged by the editorial team of the economic newspaper Les Echos to remove its director.
Founded in 1944 at the request of Charles de Gaulle after the liberation of Paris, Le Monde is today the largest French national newspaper with approximately 580,000 subscribers in print and digital formats.
For decades it has been run largely by its journalists, with some outside investors including Spanish media group Prisa. But in 2010, saddled with high debt and hampered by structural losses as the sector was rocked by the digital transition, it faced serious financial problems and needed a bailout.
Niel, businessman Pierre Bergé (who has since died) and investment banker Matthieu Pigasse stepped in and promised 110 million euros to recapitalize the business.
They also made a series of promises on governance and created an “independence hub” group representing Le Monde’s journalists, staff and readers, who together own 25.4% of the company.
Niel later declared his intention to create a permanent foundation to house his stake and transferred his shares to the facility. The foundation acts as a protective shield because once the shares are in it they no longer belong to Niel and cannot be sold.
“My opinions don’t matter, I want the editorial team to be as independent as possible,” Niel told the FT. «We created the whole structure to prevent any possibility of interference, and Le Monde journalists regularly tested it with not particularly kind articles about me. But that’s the game.”
Speaking last year at Senate hearings on media ownership, Niel said the success of the media outlets he owned was contingent on their independence.
“I think we need freedom of the press,” he said. “This doesn’t always exist in France. A number of media outlets have an editorial line that tends to serve the economic or financial interests of their shareholders. This is their choice [but] this is not my opinion on the media.”
Dreyfus expects the process of transferring shares to the foundation will accelerate until it holds just over 70% of the shares, but that depends on the resolution of a legal dispute with Bergé’s estate and the pledge of Prisa’s shares.
To critics who still fear that Niel or his co-investors might interfere, Dreyfus points to their record since they arrived in 2010.
“Judge them not by their words, but by their actions over the last 13 years,” Dreyfus said. “We said we would strengthen the editorial team. . . There are almost double the number of journalists and today they have much more power.”
The business is also on firmer footing, he said, adding that the trio had increased their financial investment to 150 million euros. “We said the paper would be profitable, and it is. . . We kept our promises,” she said.
Digital now accounts for the vast majority of subscriptions. The editorial team, made up of 540 journalists, added podcasts, videos and a weekend magazine. Le Monde is also expanding its offering in English to reach a 15% share of digital subscribers from outside France within five years.
Fenoglio said he appreciates that Le Monde has managed to make progress in both business and governance, and that its editorial management has been spared conflicts at other news outlets with more controlling owners.
“I’ve been doing this job for over eight years, I’ve never had the slightest problem with the slightest intervention on anything,” he said. “We have absolute security and freedom.”
“I don’t know if it’s replicable, but at least in our history it has been possible for private capital to save a newspaper and at the same time strengthen its independence.”
—————————————————-