Abstract

The case examines the problems faced by the French media giant Vivendi Universal (VU), which led the company to post the country's biggest ever corporate loss of $ 25.6 billion in 2003. The case attempts to analyze how and why Jean Marie Messier's (VU's Chairman) ambitious plans to turn the water and waste management company into one of the world's largest media groups failed. Problems such as the lack of a proper strategic plan and the mismanagement of company funds have been studied in depth. The case also discusses the measures taken by Messier's successor Fourtou to save the company from becoming bankrupt and to restore investor confidence.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Mergers and acquisitions, financial mismanagement, Diversification, Leadership.

Keywords

French media, Vivendi Universal, VU, corporate loss,$ 25.6 billion, 2003,Jean Marie Messier, VU, Chairman, water, waste management, strategic plan, mismanagement, Messier, Fourtou, bankrupt, investor confidence