French media company Vivendi is reportedly reviewing Marco Patuano’s position as CEO of Telecom Italia as the telco’s largest shareholder is becoming impatient with his efforts to transform the company.
French media company Vivendi (EPA:VIV) is reportedly reviewing Marco Patuano’s position as CEO of Telecom Italia (BIT:TIT) as the telco’s largest shareholder is becoming impatient with his efforts to transform the company.
Top management at Vivendi met with Patuano (pictured) in Paris on Wednesday to discuss strategic issues for the Italian incumbent such as revamping the domestic business, cutting costs and the future of its Brazilian unit TIM Brasil, Bloomberg cited two people familiar saying.
Vivendi is urging Patuano to focus TIM’s attentions on southern Europe, the report stated.
Vivendi CEO Arnaud De Puyfontaine has met with potential replacements for Patuano if he does not take the company in the direction chairman Vincent Bolloré wishes, one source was cited saying. However, the report added that Patuano could hold onto his position.
Vivendi and TIM have declined to comment.
Vivendi has been slowly increasing its stake in TIM and owned 23.8% of the telco as of 29 February.
TIM unveiled its new strategic plan in mid-February. In what may have been a nod to Vivendi, Patuano said at the time that TIM aims to “make the transition to a platform company”. It said it would deploy a “content platform strategy maintaining a provider agnostic position, pursuing new content distribution opportunities on ‘arm’s length’ terms with all partners”. In 2015, it signed strategic partnership deals with content providers Mediaset and Sky Italia.
TIM reported FY 2015 revenue of €19.7bn, a decrease of 4.6% year-on-year, and an EBITDA of €7bn, a drop of 20.3% year-on-year.
Separately, TIM has won regulatory approval to sell its stake in Telecom Argentina to US-based investment firm Fintech.