LVMH closer to buying Paris Match magazine

On Wednesday, the Lagardère group, owned by French businessman Vincent Bolloré, said it has taken a further step towards selling magazine Paris Match, having signed a memorandum of understanding with luxury giant LVMH, owned by Bernard Arnault.

“According to this non-binding memorandum of understanding,” Paris Match is set to be sold “on the basis of a business valuation” of €120 million, subject to “final negotiations,” said Lagardère in a statement.

On Wednesday, Lagardère's board of directors approved the memorandum's signing, confirming that the exclusive negotiations the two groups entered into at the end of February are advancing.

“The signing of the final agreements could take place at the end of July 2024,” said Lagardère, adding that, pending approval by the French competition watchdog, the project could be finalised “at the end of September.”

Arnault already owns daily newspapers Le Parisien and Les Echos, and is a shareholder of Lagardère. He has long had his eyes on the group's weekly magazine Paris Match, for which he made a first offer in 2021.

In April 2023, speaking at the Lagardère group’s AGM, then boss Arnaud Lagardère said it was “a tad heart-breaking,” but “it's an offer that cannot be ignored.” The Lagardère group was bought at the end of November 2023 by French media giant Vivendi, after long-drawn-out negotiations.

A few days later, Arnaud Lagardère stepped down from his executive roles, including that of CEO, after being charged following investigations into the financing of personal expenses by his companies. Since then, Jean-Christophe Thiery, chairman of the supervisory board of Vivendi-owned Canal+ Group, has replaced him ad interim.

Paris Match is celebrating its 75th anniversary this year, and the news that it was up for sale came as a surprise at the end of February, three months after Gala was sold to Le Figaro group.

Cutting debt

When Vivendi bought Lagardère, it had to sell People magazine in order to comply with European Union competition rules and keep hold of Paris Match. In 2023, the magazine sold an average of nearly 450,000 copies weekly, according to French press and media statistics association ACPM.

However, the sale of Paris Match “had been in the pipeline for a few weeks or months,” a Paris Match journalist told the AFP agency then, saying there was a “non-aggression pact” between Arnault and Bolloré.

According to the same source, “Bernard Arnault has for a long time keenly wanted to make [Paris] Match part of his group,” because it is “a brand appreciated by large number of French people.”

The sale is also expected to enable Lagardère to reduce its indebtedness, which was €2.1 billion at the end of 2023.

In Q1 2024, Lagardère posted a revenue of nearly €1.9 billion, up 12.4% thanks to the stores it operates in railway stations and airports, while revenue for its media business (comprising Paris Match, Le Journal du Dimanche, and Elle) fell by 14.3%.

Union representatives for the Paris Match personnel will also be consulted.

As has happened at all of Lagardère’s main titles, Paris Match editorial staff has experienced some turmoil since Bolloré, who is regarded as a conservative, became the main shareholder. The magazine’s Société des journalistes (association of journalists), the body that ensures professional ethics are respected, decided to dissolve itself at the beginning of the year.

In 2021, the editorial staff at Lagardère-owned Europe 1 radio station resigned after an unprecedented strike, as happened two years later at Le Journal du Dimanche.