Ackman Needs Bollore Support for $64 Billion Universal Bid
Bill Ackman says his $64 billion bid for Universal Music Group hinges on French billionaire Vincent Bollore. Analysts are skeptical the deal will proceed.
Bill Ackman’s ambitious $64 billion bid for UNIVERSAL MUSIC GROUP NV hinges on the approval of a single powerful figure: French billionaire Vincent Bolloré. The hedge fund manager recently revealed that his first priority before launching the proposal was reaching out to Bolloré, the music giant's most influential shareholder. Ackman described the response from the Bolloré camp as encouraging, noting their intrigue regarding the potential deal.
The influence of the 74-year-old tycoon, who remains a dominant force in France despite his official retirement, cannot be overstated. Through his holding company BOLLORE SE and a significant stake in the media conglomerate VIVENDI SE, he maintains effective blocking power over any major corporate action involving Universal. Bolloré gradually asserted his influence over Vivendi over several years, installing allies on the board and tightening his grip on the company's strategic direction.
"Without Bollore, we dont have a transaction," the founder of Pershing Square Capital Management said of the 74-year-old, who directly and indirectly controls just below 32% of the home to Taylor Swift, Billie Eilish and Kendrick Lamar.
Bolloré has built a reputation for opportunistic maneuvers and "creeping control," a strategy he perfected during the takeover of the advertising group Havas and the restructuring of his family’s centuries-old business. His ability to extract value from complex corporate structures is well-documented by those who have followed his career.
"He has always known how to unlock value, and he did so in a truly striking way with Vivendis assets, bringing out the real wealth inside that conglomerate," said Vincent Beaufils, author of a Bollore biography.
However, the track record of the Bolloré empire is not without its setbacks. A significant investment in TELECOM ITALIA SPA resulted in billions of euros in losses, while a move to acquire UBISOFT ENTERTAINMENT was eventually abandoned following fierce internal resistance. These past experiences may influence how he evaluates Ackman’s current offer, which some see as a test of the tycoon's analytical approach.
Ackman, who already holds a 4.7% stake in Universal and previously served on its board, is proposing a structure where shareholders can exchange their holdings for cash or equity in a new entity listed in the United States. While the proposal is under review by Universal’s board, market analysts remain skeptical of the outcome.
Analysts at JPMORGAN CHASE & CO have expressed doubts about the deal's success, suggesting that the current offer may materially undervalue the music group. They noted that Bolloré’s group is currently in a strong cash position, with approximately 5.6 billion euros in net cash, and has historically preferred European domiciles for its primary assets. The complexity of the group's ownership structure and Bolloré's tendency to maintain influence rather than exit successful positions further complicate the path forward for Pershing Square.
