Jean-Bernard Levy, the chief executive of Vivendi, is to leave after a decade running the French media, music and telecoms conglomerate following a disagreement over the strategic direction of the company, the company confirmed last night.
The board of Vivendi – whose assets include Universal Music, Call of Duty publisher Activision Blizzard, pay-TV business Canal+ and telecoms division SFR – announce Levy's departure following a meeting at the end of the day on Thursday, after news of his suddent exit was revealed by an online report by Le Figaro newspaper.
A short early evening statement, without any quotes from the departing chief executive, noted that there was "a divergence of views on the strategic development" of Europe's largest media and telecoms group. The statement simply thanked him "for his contribution over the last ten years".
Levy, who joined as chief executive in 2002 and led a recovery of the-then debt ridden Vivendi, appears to have clashed with long serving chairman Jean-Rene Fourtou. He will be replaced by Jean-François Dubos, currently the company's chief lawyer general counsel, although it is not clear if this appointment is permanent.
The Frenchman, who speaks English fluently, helped Vivendi sell Universal Pictures, the Hollywood studio, and made a series of succesful long-term investments, buying control of Activision, to create the world's leading computer games developer.
The 57-year old has been under considerable pressure in recent months following the under-performance of SFR in the face of heightened competition from new arrivals in the French telecoms market. Levy helped fend off a takeover bid from Vodafone from SFR and eventually bought full control of the number two French phone company.
Vivendi reported a record annual profit of €2.9bn (£2.47bn) for 2011, thanks to the exceptional performance of Activision Blizzard, but disappointed shareholders by admitting that earnings will not grow until 2014 because of issues at SFR.
The company's share price rose almost 4% to €14 following the report that Levy is to leave. Vivendi's stock has fallen almost a fifth since the beginning of the year hitting a nine-year low point in April.
On Monday, Vivendi was ordered to pay $956m following a protracted legal action dating back to 2003 relating to the company's 2001 acquisition of John Malone's Liberty Media's stake in Barry Diller's USA Networks. Vivendi said it intends to appeal.
Vivendi's Universal Music division – home to acts including Lady Gaga, U2 and Take That – is attempting to navigate the £1.2bn acquisition of EMI through an investigation launched by the European competition regulator. That planned takeover is not understood to be at the heart of the current dispute.
Vivendi had not responded to a request for comment at the time of publication.
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