By Gauthier Perdereau-Bilski.

Gauthier Perdereau-Bilski examines Altice France’s financial crisis and CEO Patrick Drahi’s role, highlighting the broader issue of media oligarchy’s influence on French democracy and the need for ethical media leadership.

As Altice France, led by CEO Patrick Drahi, deals with a massive $60 billion financial problem, this study seeks to get beyond the immediate fiscal tragedies _^[1]. It aims to shed light on a more persistent and insidious issue in the French ‘Pays des Lumières’: the looming shadow of media oligarchy over its democratic ethos. This inquiry encompasses more than just Altice’s debt-reduction tactics or Drahi’s post-Panama Papers incident.

 It is about lifting the veil on media power dominated by a few strong persons and institutions, able to shape public conversation, influence political narratives, and favor some ideologies or political personalities over others _^[3].

In France, a country known for its humanism and cultural vibrancy, the term ‘oligarch’ brings up ideas of the wealthy and powerful Russian corporations or individuals, representing post-Soviet Russia’s challenging interrelationship of prosperity, influence, and politics. However, France has its own breed of oligarchs, including influential personalities and families such as Arnault, Bolloré, Kretinsky, and Patrick Drahi. They wield tremendous power over the media and, consequently, public opinion ^_[2]. These individuals have the ability to choreograph a right-minded, acceptable style of thinking that coincides with their interests and the political or economic narratives they like.

Altice’s Latest Recent Corporate Situation

Altice is an international telecommunications and media conglomerate that runs an assortment of major telecom, media, and digital platforms. Altice owns many well-known news and television networks, mainly in France, including BFM TV, BFM Business, and RMC Découverte. The aforementioned outlets are well-known for their news coverage and play an important role in the French media scene. 

Altice’s journey has become tainted by an assortment of disturbing occurrences. The arrest of Armando Pereira– an important Drahi colleague– for financial malfeasance has added to Altice’s focus _^[4]. The internal upheaval reached a climax when Arthur Dreyfuss announced the suspension of a senior executive, causing major disorder inside the company’s hierarchy _^[4]. These incidents highlight the unstable character of Altice’s corporate governance and a greater level of insecurity inside the organisation _^[4]. This may leave a detrimental effect on employee engagement, trust among shareholders, and the company’s broad terms image, all of which are critical to its stability and success.

Altice’s Debt Concern and Drahi’s Strategy 

Altice’s enormous financial obligations across its subsidiaries in France, the United States, and throughout the world demanded Drahi’s commitment _^[5]. Drahi oversaw asset transactions, notably data centres for Morgan Stanley and sections of SFR and Portugal Telecom, to handle the financial burden. While these steps were intended to bring down debt, it provoked questions about Altice’s long-term profitability and stability _^[5].

A Disturbing Link Between Drahi and the Panama Papers

The Panama Papers scandal, the significant 2016 leak of over 11.5 million papers exposing the offshore banking operations of individuals and businesses throughout the world, has severely harmed Drahi’s credibility, casting a long shadow over his business transactions.  

The Panama Papers affair has tarnished Drahi’s image tremendously, casting a lengthy shadow over his financial transactions _^[1]. The consequences of using offshore firms for asset concealment and tax fraud have sparked a media firestorm, throwing Altice’s leadership’s ethical compass into doubt. This issue has not only harmed Altice’s public image but also raised calls for corporate transparency and responsibility _^[1].

Edited by Justine Peries.

References

[1] Foucault, Charles. “Panama Papers: Patrick Drahi cité dans le scandale des sociétés offshores.” Economie Numérique Numericable Altice, 05 April 2016. https://www.lemonde.fr/panama-papers/article/2016/04/05/ce-que-les-panama-papers-nous-apprennent-sur-patrick-drahi-et-le-groupe-altice_4896487_4890278.html

[2] Lanier, Vincent and Vire, Emmanuel. “Médias sous contrôle”.  September 2016. Click to access HL175-Dossier-censure-2.-M%C3%A9dias-sous-contr%C3%B4le.pdf

[3] France. Sénat. “Rapport fait au nom de la commission d’enquête afin de mettre en lumière les processus ayant permis ou pouvant aboutir à une concentration dans les médias en France et d’évaluer l’impact de cette concentration dans une démocratie.” 29 Mar. 2022. Sénat, Session Ordinaire de 2021-2022, N° 593. https://www.senat.fr/rap/r21-593-1/r21-593-11.pdf.

[4]”Economie, Vu ailleurs. Drahi, les Panama Papers, et les silences du Monde.” Breizh-info.com via Ojim, 10 April 2016.

[5]Sannat, Charles. “Altice et Patrick Drahi. Un risque systémique pour les banques françaises?” 11 Sept. 2023.

[6]Rosemain, Mathieu, and Jan Lopatka. “Czech Tycoon Kretinsky Crashes Close-Knit French Elite with Casino Bet.” Reuters, 5 Oct. 2023. https://www.reuters.com/markets/deals/czech-tycoon-kretinsky-crashes-close-knit-french-elite-with-casino-bet-2023-10-05/

[7] “The Billionaires Investing in Newspapers in an Era of Digital News.” Forbes, 23 April 2022.Click to access Digital_News-Report_2022.pdf

[8] Kotecký, Daniel. “Coal Baron Daniel Křetínský and Hidden Carbon Emissions.” Deník Referendum. Translated by Voxeurop. Photograph by David W. Cerny / Reuters / Forum. Published by VSquare.org, 11 Dec. 2023.

[Cover Image] Image: dictatorship-oppression-collage-concept. Author :Freepik.co, free rights of use.