The news of the death of former Italian Prime Minister Silvio Berlusconi today, Monday, has led to a rise in the shares of "Media for Europe," in which his family holds a stake. The surge in the company's shares does not indicate a disrespect for the billionaire who amassed his fortune in commercial television channels before entering politics, but rather suggests the possibilities that may open up for the company following the exit of its founder from the scene.
The company is 48% owned by the Berlusconi family's "Fininvest" holding group and operates commercial television channels in Italy and Spain, while also holding a significant stake in the German television network "ProSieben." The company has expanded its operations across Europe from its Italian base, in an effort to compete with American broadcasting giants that are capturing an increasing share of viewers.
In this rapidly changing media landscape, some investors are betting that Berlusconi's heirs will be more willing to seek a partner for the company or to sell out to a larger competitor. The French media group "Vivendi," which is the second-largest shareholder in "Media for Europe," is widely viewed in the industry as the leading candidate. However, an agreement reached between the two companies in 2021 to settle a long-standing legal dispute prevents Vivendi from increasing its 23% stake until 2026.
Shares of class "B" in "Media for Europe" rose by up to 10.3% on Monday, increasing by 3.7%, which gave it a market capitalization of 1.6 billion euros. Carlo Alberto Carnevale, a strategy professor at SDA Bocconi School of Management, stated: "When it comes to company ownership, investors will buy first and then wait to see what happens."
The businessman, who died at the age of 86, had not announced a successor, but insiders told Reuters that his eldest daughter Marina, who already heads Fininvest, is likely to take charge. Marina (56 years old) has chaired the board of Fininvest since 2005. In addition to Media for Europe, the family's holding company also controls the Mondadori publishing house and holds a significant stake in Mediolanum.
Shares of Mondadori rose by 1.4%. Carnevale added, "Berlusconi might not have laid out succession plans for his party, but he certainly did for his businesses." Before 2005, Marina served as deputy to the director of Fininvest for nine years. Fininvest stated in a statement on Monday that there will be no changes in the way its operations are managed.
Berlusconi placed Marina, who is described by those who work with her as a demanding and tough leader, in the company while she was in her early twenties, and her influence grew as he was forced to refrain from interfering after entering the political arena in 1994. Marina is a mother of two and the wife of a former dancer from La Scala ballet company.
Her leadership role at Fininvest has increased over the past decade as her father's health declined. In a television interview in 2018, Berlusconi said that Marina is his closest child and that he consults with her daily before making any decisions, which is something he also did with his mother before her death. Berlusconi had five children from his two previous marriages. Marina and Pier Silvio, who are from his first marriage, hold executive positions in the family businesses, unlike the other three children.
