American hedge fund manager Bill Ackman made his first phone call to French billionaire Vincent Bollore before announcing his massive $64 billion takeover attempt for Universal Music Group this week.
The Pershing Square Capital Management founder later informed investors that Bollore’s reaction to his proposal was “music to my ears,” noting that the French mogul’s team appeared “intrigued” by the offer.
“Without Bollore, we don’t have a transaction,” Ackman stated about the 74-year-old businessman, who maintains control of just under 32% of the entertainment giant that houses major artists including Taylor Swift, Billie Eilish and Kendrick Lamar.
Despite being officially retired, Bollore remains actively involved in business dealings and possesses effective veto power over any potential deal through his direct ownership and indirect holdings via his family enterprise and stake in French media company Vivendi.
Representatives for Bollore’s Paris-traded holding company have not responded to requests for comment regarding Ackman’s proposal, which industry observers view as a test of the French tycoon’s business philosophy.
Ackman declined to provide additional comment. Universal has stated that its board of directors is examining Pershing’s “unsolicited and non-binding proposal” but refused further commentary.
Following his successful transformation of his family’s centuries-old business, Bollore expanded his empire through strategic stake-building campaigns during the 1990s, particularly targeting construction-to-media conglomerate Bouygues.
He later perfected this strategy during his acquisition of advertising company Havas in the early 2000s, creating a “creeping control” method he subsequently applied to media ventures while earning recognition for his direct management style.
Universal, where CEO Lucian Grainge has maintained considerable independence, has represented a notable departure from this pattern.
Bollore’s investment in the world’s largest music company, obtained through Vivendi’s 2021 spinoff and Amsterdam stock exchange listing, is considered among his most profitable decisions.
Over time, Bollore steadily expanded his influence within Vivendi, placing supporters on the board and strengthening his control.
“He has always known how to unlock value, and he did so in a truly striking way with Vivendi’s assets, bringing out the real wealth inside that conglomerate,” said Vincent Beaufils, author of a Bollore biography.
While Bollore has transformed France’s media environment, including Vivendi’s acquisition of Lagardere and the sale of its logistics division to CMA CGM, not every investment has succeeded.
Vivendi’s Telecom Italia investment eliminated billions of euros in value, while an attempt to enter Mediaset created conflict and legal battles with Silvio Berlusconi’s family, and a push into Ubisoft fell short of complete acquisition due to opposition.
Forbes calculates that Bollore and his family’s wealth has grown from $5.2 billion in 2017 to $9.8 billion in 2026.
Ackman, who holds a 4.7% stake in Universal and served on its board until May of last year, is presenting Bollore and other shareholders with choices to exchange their shares for cash or ownership in a new U.S.-listed company.
“He will look at it in a very cold and analytical way,” said one individual who has collaborated with Bollore. However, two industry leaders who have previously dealt with him indicated that Bollore’s choices can be challenging to predict.
JPMorgan analysts remain among those skeptical that Ackman will receive his desired response, arguing that Universal will find it difficult to endorse a proposal that “materially undervalues” the company.
The primary consideration influencing Bollore’s decision-making is his group’s extremely complicated ownership framework, analysts noted in a Friday report, adding that they anticipate rejection of the Pershing offer.
“It does not need cash; it has been a buyer, not a seller, of UMG shares; it is unlikely to sell at a discount to fair value; it would not want to reduce its influence; and it has historically favoured a European listing and domicile for UMG.”
Bollore’s group reported maintaining a net cash position of approximately 5.6 billion euros ($6.55 billion) at the end of last year.
