French media boss Mr Jean-Marie Messier has agreed to resign after a dramatic boardroom mutiny over his embattled leadership of Vivendi Universal, an industry source said today.
Shares in the world's second largest media firm soared almost 20 per cent as investors celebrated what looked like the last chapter of a two-year, debt-fuelled adventure that propelled a grey French water firm to a big player in Hollywood.
"It's true. We've just had it confirmed by the company," the industry source said, following newspaper reports that Mr Messier had lost the support of his board and agreed to quit.
The Le Mondenewspaper said Mr Messier had reluctantly agreed to fall on his sword after a 60 per cent drop in Vivendi's share price but was wrangling over the terms of his departure. Vivendi declined comment but sources close to the company said Mr Messier had rallied a hard core of supporters including Vivendi's number two Mr Eric Licoys for a crisis meeting.
"Without a doubt investors would welcome Messier's exit. He's made so many mistakes and ultimately the share price has fallen 60 per cent this year. If someone else could bring much needed direction that would be a good thing," said Mr David Ferguson, media analyst at Barclays Private Clients in London.
Mr Messier (45) has been blamed for Vivendi's recent woes after transforming the 150-year-old former water company into a global media titan with control of Universal Studios and a music label boasting a galaxy of stars from Sting to Eminem and U2.
After a manic acquisition spree, Mr Messier left Vivendi struggling with a huge debt pile, a sliding share price and France's biggest loss in corporate history. A series of fumbled announcements further dented investor confidence.