Mark Hunter
Letter from France
Le Grand Fromage: What the French think of Jean-Marie Messier, Frances new king of content.
If content is king, then Jean-Marie Messier is the most uncontested royalty France has produced since Louis XVI took a ride on the guillotine.
Four years ago, the round-faced and youthfully energetic Messier, 43, took over a highly profitable water company, the Ginirale des Eaux, and began pumping its profits into a new-economy powerhouse called Vivendi.
Today, Messier’s media mills include Havas, which owns the cream of France’s print media, and Canal Plus, the TV network that is the biggest producer of cinema in France. He’s the symbol of a new generation of French business leaders. He’s also a textbook symbol of a country in which power remains concentrated in the hands of a tiny caste.
Messier comes from a system in which the state trains an elite that goes on to dominate both politics and business. He attended Polytechnique, an engineering faculty founded by Napoleon, and the National School of Administration, which is a lot like going to MIT and the Harvard business and law schools.
After a brief bureaucratic stint as an inspector of finances, he became a star player in the cabinets of two government ministers. Then he spent five years in the banking sector, and joined the Ginirale des Eaux in 1994. He was its CEO two years later. Few American business players are wired into that many power grids.
But unlike many members of his caste who worry about the privileges they might lose instead of the glory they might gain, Messier takes real risks. Nothing obliged him to move beyond the highly profitable water business — nothing except his own ambition.
In 1997 he sniffed that France was just “a tiny market in international terms.” And he quickly saw that new media would make it even tinier. Even now, only three out of 10 French business leaders take the Internet seriously, according to Andersen Consulting. Not Messier. As far as he’s concerned, “Not only is the Internet going to become a mass medium, it’s going to become the dominant mass medium.”
Messier’s closest American counterpart is Steve Case, another maverick whose obsessions are stockpiling messages for the media and unearthing the pipelines to the client. Last year, he observed that “you see few connections being made between the world of content and the telecommunications providers.” That’s how Messier sees his 1999 alliance with Vodafone and the Seagrams takeover.
Though the Case comparison is valid, no American media magnate holds power comparable to Messier. In France, if you are a filmmaker, author or politician, Vivendi can make it a lot easier for people to ignore your existence.
Lately, folks have also noticed that the conglomerate controls a scary amount of information about the French. As the daily Libiration noted, besides portable telephones and pay TV, Vivendi “exploits the networks by which billions of Social Security forms will transit, and it measures the water consumption of several millions of the French — one day, the client might get worried about that.” Messier keeps promising that Vivendi will never abuse its data banks — which unfortunately reminds people that it could.
Likewise, Messier has said he wants “to reconcile the economic might of a large corporation with the freedom that is vital to the press, and indeed to all creators.” But in practice, the large corporation comes first.
Take Karl Zero, whose “Real Journal” program runs on Canal Plus. When Zero inaugurated the show, a very French mix of satire and investigation, he boasted that he had the right to go after anyone in France, including his corporate bosses. Lately Zero says that he can investigate anyone except Vivendi.
But even Messier’s opponents pay tribute to his brains and charm. Colette Neuville, president of France’s Association of Minority Shareholders, was suing Vivendi in 1997 when Messier called her out of the blue for a 45-minute chat. He asked for a meeting, during which they reached a settlement. “I’ve sued him four times, and yet we have normal relations,” says Neuville. “If he can beat me, he will. But I appreciate his capacity to deal directly with problems that can hurt his company’s image.”
If Messier has a flaw, says Neuville, it’s that “he sometimes reacts too quickly. With more reflection, he’d act in a more effective way.” It’s the kind of mistake that a brilliant man accustomed to rapid success and the prerogatives of power can make.
Of course, it remains to be seen if the acquisition of Seagram, which the markets greeted by hammering Vivendi’s stock, which closed Wednesday at 89.45 euros on the Paris bourse, well off a 12-month high of 150 (an 8.7 percent drop that serves as a post-announcement snapshot of investor reaction), will prove once again that Messier was right before everyone else. Either that, or we’ll find out that content alone does not make a king.
Europe’s monster plane
It's 40 feet shorter than a football field: Meet Airbus' huge new A3XX, which could change the future of aviation.
Here is the future of aviation: By 2015, air passenger traffic will double; by 2020, it will triple to nearly 4 billion passengers a year. Think of your last flight — the lines, the chaos, the lost luggage — then multiply the number of people in the airport by three.
Over the past four years, a cabal of airline executives from around the world has regularly convened in the French countryside to decide if they want to change this picture. To do so, they will have to take one of the costliest gambles in the history of civil aviation. The price tag may be as high as $12 billion, but the payoff could be global dominance of the airline industry for the next half-century.
Continue Reading CloseA California lawsuit makes Paris tremble
Did the toughest corporate raider in France play the stooge for a bank gone wrong?
Some battles you lose, even if you win. For the French
co-defendants, the Executive Life case may be one of those
battles. Executive Life was a California insurance company that
bellied up and was sold in 1991 by the state insurance
commissioner to French investors, who subsequently derived
enormous profits from the company’s junk-bond portfolio. Now
those investors face the possible creation of a trial record –
resulting in public disclosure that may loom as large for some of
them as the potential loss of billions of dollars.
France's hidden treasure
When Parisians in the know want to get away, they head for the wild wonders of Creuse.
Antoine is acting strange, and the grown-ups — two expat Russians, a Frenchwoman and me, the expat American — are sitting on Mischa’s bare concrete terrace under the pavilion tent overlooking a hillside in the Creuse, trying to figure out what it means. All summer Antoine has been a model 10-year-old. He doesn’t bother Mischa during writing hours, or me when I play the guitar, or torture the kittens, and he hasn’t broken anything in his body, the junk depot or the stone barn that Mischa has been turning into a three-story house over the past few years. In fact, Antoine learned more masonry working on the barn than some men in the Creuse, where stonework remains a skill as common as knitting. So why is he brooding, when he isn’t chirping like a hysterical bird?
Continue Reading CloseNewsreal: Free the Boulder Two!
Everybody thinks John or Patsy Ramsey, or both, killed their daughter JonBenet. But 10 months after the murder, the police have nothing solid -- except smears that they feed to the press.
i always wanted to be unique, and now I’ve made it: I’m the only person in America — apart from the two accused — who thinks that John and Patsy Ramsey are being publicly destroyed for a crime they didn’t commit.
Perhaps I’m merely ignorant. I don’t have access to the police files on the case — just the copious “evidence” that’s been leaked steadily to the National Enquirer, the Globe, Newsweek and Vanity Fair by the Boulder, Colo., cops. Problem is, what they’ve got, more than 10 months after the slaying, isn’t anywhere close to an indictment. So they’ve done the next best thing: smeared the Ramseys up and down, with the aid of the press, hoping to make their prime suspects crack. It’s the same tactic the FBI used against Richard Jewell in the Atlanta Olympics bombing case. And, as with the Jewell case, the cops may be flat out wrong.
Continue Reading CloseNewsreal: Goodbye, my toujours Provence
Hello, Jean-Marie Le Pen and his neo-fascist friends.
The good news about the French elections is that Jean-Marie Le Pen’s National Front didn’t do better than it did in Sunday’s runoff. The bad news, if the accelerating resurgence of neo-fascism in la belle France is a prospect you find troubling, is that it has hardly begun to march. When it does, get ready to kiss your toujours Provence dreams goodbye because the extreme rightists are well on their way to taking control of the region — along with many others.
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