"We are looking at growing further in different countries. We are looking at further strengthening our digital focus; we are already doing very well there, but we believe that this is the area that can do better with more focus_. Today, digital has great opportunities. It does not only mean the web, but it has become a medium that is working together with other media. Whether it is television, radio, cinema or print, all forms of media are moving towards digital, and the media landscape itself is changing."
Vincent Bollore is from a well-off family from Brittany, and he graduated with a Bachelor of Law (LLB) degree from Universite Paris X Nanterre. Bollore started his investment career as a bank trainee at investment bank Edmond de Rothschild. He is a well-known corporate raider in France who has succeeded in making money by taking large stakes in French listed companies, in particular the building and construction group Bouygues, where he left with a sizeable capital gain after a power-struggle.
In late 2004, his investment group started building a stake in the advertising group Havas, becoming its largest single shareholder. He muscled his way as Chief Executive Officer of Havas on July 12, 2005, replacing Alain de Pouzilhac. In 2005, through his family company, Bollore expanded his media interests by launching the Direct 8 television station. Towards the end of 2005, he began building a stake in independent British media planning and buying group, Aegis. As of July 19, 2006, his stake in Aegis stood at 29 per cent. Direct Soir, a free newspaper, was launched in June 2006, as part of Bollore's media expansion.
In this interview with exchange4media's Noor Fathima Warsia, Bollore speaks on what attracted him to media, and the plans that he has for Havas in India. Excerpts: Q. Please take us through some of the plans that you have for Havas in days to come…
We have many plans to strengthen Havas’ presence globally. But you must understand that one big advantage that we have and our competition does not is that of time. They have to do everything fast and in a hurry, and you can make a mistake, or not so much of a clever decision can be taken when there is that kind of pressure. In our case, we have enough to invest in acquisitions but we would like to make the right decision, and we have time on our side for that.
We are looking at growing further in different countries. We are looking at further strengthening our digital focus; we are already doing very well there, but we believe that this is the area that can do better with more focus. So we are working on being the best in delivering in that area. Today, digital has great opportunities. It does not only mean the web, but it has become a medium that is working together with other media. Whether it is television, radio, cinema or print, all forms of media are moving towards digital, and the media landscape itself is changing.
Q. You are known for the moves that you have made in areas like building and construction and so on… What attracted you to media?
I made my first move in media in 2004, and it was clear for anyone who was observing corporate growths at the time that media was a business that was flourishing and growing fast in any part of the world. That was one of the first things. When I was looking at Havas as an option, everything about the company made sense, and in hindsight, it has turned to be a good decision.
Q. Would you like to elaborate more on that?
We have seen a growth of 25 per cent in our first quarter, which is better than anything that competition has achieved. All our businesses are on an upward curve; there has to be something that is going right, isn’t it? Some of the steps that Havas has taken in the new media spheres are also in sync with the changes that we are seeing in media today. Most important reason why I think that the decision to invest in Havas was the right one was because of the talent here. I have immense respect for the top management of the various businesses from Euro RSCG to MPG, and they have great teams. We continue to invest in talent, across markets in a very strong way.
Q. On a slightly broader note now, there are debates of increasing collaboration between media and creative units. What is your view on that?
Clearly you will have a merger. With the evolution of new media and the obligation to link creativity with media, there would be a greater need for the two to work together. Finally we would be totally merging everything in all the markets, everywhere.
Q. Finally, the media business seems to be a cut-throat business with all the mergers and acquisitions, and the constant need of media holding companies to outdo each other. How has the experience been so far?
A lot of fun and excitement -- I am enjoying it. I should also point out that in our group, we have made external acquisitions and have seen organic growth as well. The best thing about working here is to work with and deal with some of the sharpest minds in the world today. That has been a real driver.
Q. Would you like to tell us more on the reasons behind increasing stake in Aegis?
Well, I can tell you that it was a pleasure from the beginning to be working with a company that has Mainardo de Nardis. Aegis is an important story for us. To give you a background, before my arrival at Havas, Robert Lerwill (CEO, Aegis Plc) came to me and said, ‘You have a stake in Havas, and you may be at the head one day. We want to make deals with Havas, since there are various synergies that Havas and Aegis have. We want to know that if you do become the head, would you be following the policies of the former managers?’
The relation is a special one -- I see it as a love affair. After I took charge, I saw that there was a possibility of Aegis moving to competition, and we didn’t want that. So we increased our stake in the company to 29 per cent. We met Aegis again to take the relation forward, but you know the story after that. Some of the things have not even been right -- they had given some numbers, and three weeks later we discovered they have lesser figures than that, and they never apologised for that. But as I said, it is like a love affair. We should be nice to each other, and should give each other time. Let us see what happens from there.
Q. What is happening on that now?
Our people are making a general chat with the shareholders and we can’t tell you who will join and who will not, but the cleverness is to join.
Q. Do you really think that is possible?
I really think that is a possibility. The level of the people working together between these media will increase if you have to come up with solutions, which will stay with today’s ‘digital’ consumer. At Havas, we are anyway like tribes and not units working in silos. It would be all the tribes working together.
Q. We are in the digital wave. What do you think is the next big thing that would hit media?
I believe the next big thing is mobility. It would allow everyone to take his computers outside and stay connected to the world. Mobile is growing in a big way, especially in important markets like India. I think that is a medium that would see more development and growth in days to come.
Q. What is guiding your decisions in the media space?
Well, I am watching and listening very closely. In the team at Havas -- even our competition -- there are some very clever guys in the business and if they have succeeded, they know what they are doing. I am listening to what my team has to say, what consumer insights and clients have to say, and I am also seeing what competition is doing. Right now, we have decided to make long-term investments, and we are happy with the results so far as well.
Q. What are the plans that you have for India?
We are doing a lot in India already and we have very extensive plans. Havas offices have 2,000 people employed in India, and we are hiring more. In fact, I want to visit India next year.