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Authors: Philippe Mouricou (Brest Business School)
Published in: 2012
Length: 19 pages
Data source: Published sources

Abstract

On 12 April 2011, Pierre Bellanger, founder of Skyrock, was ousted from President and Chief Executive Officer of Skyrock. In fact, Axa Private Equity, the Investment Fund that bought 70% of Skyrock’s stock in late 2006 has decided to cut costs in order to sell the company. Founded in 1986, Skyrock has become a diversified company. In addition to its historical radio business, the group has created and developed several Internet subsidiaries from the early 2000s. Despite ratings success, the financial results were perceived as insufficient by the major shareholder. As a result, Marc Laufer, a manager known for his ability to drain cash from media companies, was appointed CEO. The firing of Pierre Bellanger was a shock for Skyrock’s 200 employees. Immediately after the news was released, a special edition of Radio Libre was broadcasted in order to strike back. After an entire week of protestation, Axa Private Equity finally decided to rehabilitate Pierre Bellanger and to sell its shares to French Banking Company Credit Agricole. This case study depicts a situation where different human groups (employees, listeners, artists, representatives and other stakeholders) decided to go against the main shareholder’s decision. It has been written to train the students to analyse the content, the processes and the context of an organizational change as well as the strategies implemented by the main shareholder in order to replace the CEO.
Location:
Industry:
Size:
Employees (2010) 200, revenues (2010) EUR32.7 million
Other setting(s):
April 2011

About

Abstract

On 12 April 2011, Pierre Bellanger, founder of Skyrock, was ousted from President and Chief Executive Officer of Skyrock. In fact, Axa Private Equity, the Investment Fund that bought 70% of Skyrock’s stock in late 2006 has decided to cut costs in order to sell the company. Founded in 1986, Skyrock has become a diversified company. In addition to its historical radio business, the group has created and developed several Internet subsidiaries from the early 2000s. Despite ratings success, the financial results were perceived as insufficient by the major shareholder. As a result, Marc Laufer, a manager known for his ability to drain cash from media companies, was appointed CEO. The firing of Pierre Bellanger was a shock for Skyrock’s 200 employees. Immediately after the news was released, a special edition of Radio Libre was broadcasted in order to strike back. After an entire week of protestation, Axa Private Equity finally decided to rehabilitate Pierre Bellanger and to sell its shares to French Banking Company Credit Agricole. This case study depicts a situation where different human groups (employees, listeners, artists, representatives and other stakeholders) decided to go against the main shareholder’s decision. It has been written to train the students to analyse the content, the processes and the context of an organizational change as well as the strategies implemented by the main shareholder in order to replace the CEO.

Settings

Location:
Industry:
Size:
Employees (2010) 200, revenues (2010) EUR32.7 million
Other setting(s):
April 2011

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