Before announcing his $64 billion proposal to acquire Universal Music Group this week, U.S. hedge fund manager Bill Ackman reached out to French billionaire Vincent Bollore. Ackman informed investors that Bollore’s reaction to the idea was highly positive, describing it as encouraging and noting interest from Bollore’s side. Ackman, who leads Pershing Square Capital Management, emphasized that the deal could not proceed without Bollore’s involvement. The 74-year-old Bollore holds nearly 32% of Universal Music Group through direct ownership and indirect interests via his family holdings and shares in French media company Vivendi. Although officially retired, Bollore remains engaged in business and possesses veto power over transactions due to his substantial stakes. Representatives from Bollore’s Paris-based holding company did not reply to inquiries about Ackman’s proposal, which some view as an evaluation of the French businessman’s strategy. Ackman and Universal Music Group, home to artists like Taylor Swift, Billie Eilish, and Kendrick Lamar, also declined to provide statements. Universal indicated that its board is examining the unsolicited, non-binding offer. Bollore revitalized his family’s long-standing enterprise and expanded it in the 1990s through strategic investments, including in the construction and media firm Bouygues. He further developed this approach by acquiring advertising company Havas in the early 2000s, creating a pattern of gradual control that he applied in media sectors, earning recognition for his direct involvement. However, Universal Music Group stands out as an exception, where CEO Lucian Grainge has enjoyed considerable independence. Bollore gained his stake in the world’s leading music company via Vivendi’s 2021 separation and listing of the unit in Amsterdam, a move regarded as one of his most successful. He steadily increased his sway over Vivendi by placing supporters on the board and strengthening his position. According to Vincent Beaufils, who wrote a biography on Bollore, he has consistently identified ways to extract value, notably by revealing the underlying assets in Vivendi’s structure. While Bollore has transformed France’s media industry, including Vivendi’s purchase of Lagardere and the divestiture of its logistics operations to CMA CGM, not every investment has succeeded. For instance, Vivendi’s involvement in Telecom Italia resulted in major financial losses, an attempt to influence Mediaset led to conflicts and lawsuits with Silvio Berlusconi’s family, and an effort to control Ubisoft fell short due to opposition. Forbes reports that Bollore and his family’s net worth grew from $5.2 billion in 2017 to $9.8 billion in 2024. Ackman, with a 4.7% ownership in Universal and a former board seat until May of last year, is presenting shareholders, including Bollore, the choice to exchange shares for cash or equity in a new entity listed in the U.S. An individual familiar with Bollore described his decision-making as pragmatic and data-driven. However, two executives with prior experience negotiating with him noted that his choices can be unpredictable. Analysts at JPMorgan doubt Ackman will secure approval, arguing that Universal is unlikely to endorse an offer that significantly underprices the company. They highlighted Bollore’s intricate ownership setup as a critical element, predicting rejection of the bid. The group does not require funds, has been purchasing rather than selling Universal shares, would avoid selling below market value, prefers maintaining control, and has traditionally supported a European base and listing for the company. Bollore’s organization reported a net cash balance of approximately 5.6 billion euros ($6.55 billion) at year’s end.
