Vivendi tried to buy Telecom Italia — but Italy’s government stopped the deal

Vivendi, the French media conglomerate, began acquiring shares in Telecom Italia (TIM), Italy’s former telecommunications monopoly, in 2015. By October 2015 it owned 15.5% of TIM. Vivendi continued buying, raising its stake to 24.6% by May 2017. Vivendi’s CEO Arnaud de Puyfontaine became Executive Chairman of TIM, and the company appeared to be on the verge of taking control of Italy’s largest telecom operator.

The Italian government intervened using “golden power” laws — special powers that allow the state to block or impose conditions on foreign acquisitions in strategic sectors. Italy classified TIM as a strategic national asset. The government’s intervention effectively froze Vivendi’s ability to exercise control over the company. A proxy war with US activist hedge fund Elliott Management further destabilized TIM.

Vivendi was gradually forced to sell. In March 2025, Poste Italiane bought 15% of TIM from Vivendi, becoming the majority shareholder. By April 2025, Vivendi’s stake had shrunk to 2.5%. The failed acquisition had cost Vivendi a decade of investment and left it with a fraction of its original stake. The episode became a textbook case of a cross-border acquisition blocked by national sovereignty concerns.