The death of former Italian Prime Minister Silvio Berlusconi on Monday raises many questions about the future of his business empire. Although the ailing businessman stepped away from the media business years ago to devote himself entirely to politics, his death threatens to change their societies. A far-reaching restructuring cannot be ruled out.
Shares in family-owned company MFE-MediaForEurope soared on Monday after news broke of Berlusconi’s death. MFE shares rose 3.7 percent on Monday, taking the media group’s market capitalization to €1.6 billion. MFE, 48 percent owned by the Berlusconi family’s Fininvest holding, operates commercial television channels in Italy and Spain and has a 30 percent stake in German broadcaster ProSiebenSat.1. Shares in Milanese publisher Mondadori, which belongs to the Berlusconi empire, rose 1.4 percent on the Milan stock exchange.
MFE’s second-largest shareholder, French media group Vivendi, is considered the industry’s most important acquisition candidate. However, a 2021 agreement between the two companies to end a year-long legal battle prevents Vivendi from increasing its 23% stake until 2026.