Europe's wealthiest individual consolidates media influence
Bernard Arnault, the globe's top luxury tycoon with brands like Louis Vuitton, Dior, and Tiffany, is now purchasing France's most celebrated magazine and augmenting his media domain. Simultaneously, his offspring are ascending within the company's echelons - a European luxury media dynasty is brewing.
His net worth tallies approximately $230 billion. The French magnate is battling Elon Musk for the title of the world's wealthiest individual, with the lead varying due to Tesla and LVMH (Louis Vuitton Moët Hennessy) stock fluctuations. Arnault is undeniably the wealthiest European. His luxury conglomerate LVMH (employing roughly 200,000 individuals) comprises over 70 luxury brands, from Louis Vuitton and Dior to Tiffany and Moët & Veuve Clicquot's champagne.
Now that Arnault has reached 75, he is charting new paths. Surprisingly, he is purchasing France's largest illustrated magazine, "Paris Match," for 120 million euros. The magazine, an icon of the French media realm, has been a vanguard of photojournalism for 75 years and still sells 440,000 copies per week. "Paris Match" is renowned for its lavish glimpses into the lives of the affluent and renowned, an alluring boulevard, but also political headlines and surprises, even gripping war journalism.
A dazzling piece for the empire
The first "Paris Match" was launched on March 25, 1949, featuring Winston Churchill on the cover. In 2006, the editor-in-chief was ousted following a cover displaying Cecilia Sarkozy with her then-lover. Two years ago, the editor-in-chief resigned due to the publisher forcing through a cover story about African cardinal Robert Sarah, who warned Europe about mass immigration and Islamic influence from Africa.
Arnault aims to transform "Paris Match" into a brand of his luxury goods conglomerate and utilize it to bolster and stage the luxury brands of the company. At the same time, Arnault is expanding his publishing dominance, as he already possesses the media group Les Echos-Le Parisien, comprising the financial newspaper "Les Echos," the weekly magazine "Investir," and the daily newspaper "Le Parisien," as well as the radio station "Radio Classique" and the German film production and dissemination corporation EuroArts Music International.
Rebellion against the silence order
While Arnault expands his media empire, he faces criticism from within his own ranks and does not tolerate any leaks. Employees of LVMH, including journalists, now endure an "absolute speaking ban" with critical media such as "La Lettre" or the satirical weekly "Le Canard Enchaîné." Even interacting with their journalist colleagues can result in termination. French journalists' unions are now protesting against this gag order and the repressive environment at Arnault's company. In an open letter, they remind Arnault that the "purpose of the press" is not to "transmit the official communication of companies and institutions," but to inform.
"The loyalty obligation to which they are bound cannot allow their employer to rob them of their fundamental rights (...)," they write. The letter was signed by journalists from numerous prominent French newspapers, including "Le Monde," "Le Figaro," and AFP, as well as news channels France Télévisions, BFM-TV, and France 24. Some employees of Arnault's newspapers "Les Echos" and "Le Parisien" also joined in. It appears to be a publishing insurrection against the media tycoon.
The billionaire by Macron's side
Criticism of Arnault has a political bent as well. As a billionaire, he is an active liberal conservative and a buddy of President Emmanuel Macron. Arnault donates to and supports Macron in elections, not only financially but also with actions and words, while vehemently opposing right-wing populist Marine Le Pen. For years, he has warned that Le Pen's program would "shackle" France's companies. "Everything in her program spreads fear and weakness," Arnault denounces. He disapproves of Le Pen's Euro plans as "quarantine" and "ruin," and her Rassemblement National's desire to "dilute" the economy. In brief, Arnault is Macron's soulmate.
The Arnaults and Macrons publicly display their friendship. Macron recently conferred Arnault the highest French order of merit (Grand-Croix de la Legion d'Honneur). The event attracted celebrities such as Beyoncé, hip-hop legend Jay-Z, Queen Rania of Jordan, and tech billionaire Elon Musk. Brigitte Macron, in turn, frequently appears at Arnault Group fashion shows, implicitly advertising French luxury brands in her attire, opting for Dior. Brigitte Macron was not only her husband's French teacher but also taught the younger Arnault sons, Frédéric and Jean.
The Next Generation Joins In - Gradually
Arnault's sons are becoming increasingly prominent figures in the company's top positions. The appointment of Alexandre, 31, and Frédéric, 29, to the board is designed to ensure the company as an economic dynasty. Arnault and his family possess around 48% of LVMH shares and nearly 64% of voting rights. All five of Arnault's children now work in the company. Delphine, 48, serves as CEO of Christian Dior Couture, the group's second-largest fashion label after Louis Vuitton. Antoine Arnault, 46, oversees LVMH's image and communication and is chairperson of the Loro Piana cashmere specialist. Both Delphine and Antoine gained board membership before reaching 30.
The three young lads who inherited their billionaire father's fortune from his second union with Canadian pianist Helene Mercier, run various divisions within the conglomerate. Alexandre, 30-something, spearheads Tiffany & Co. for the past three years. On the other hand, Frédéric handles the watch division with famed brands like Hublot, Tag Heuer, and Zenith under his belt. And lastly, Jean, aged 25, focuses on the watch category development for Louis Vuitton.
Alexandre is also part of Birkenstock's supervisory board, a German traditional company, which LVMH subordinate acquired in 2021. It's rumored that the kids pressured their dad into this purchase.
As reported by "The New York Times," Arnault shared that he prefers keeping his kids away from vacuous parties and rather encourages work. Every month, the five assorted Arnault children gather for lunch at LVMH headquarters' top floor, discussing business matters for roughly 90 minutes, including recent media trends. Jean Arnault, the youngest progeny of Bernard Arnault, elucidated to the press, "While we converse, the final say resides with him."
After a heated competition, Bernar Arnault and Elon Musk are vying for the title of the world's wealthiest individual, with their net worths consistently fluctuating due to Tesla and LVMH stock movements. Interestingly, Arnault has recently acquired France's largest illustrated magazine, "Paris Match," for 120 million euros, aiming to transform it into a luxury brand under his conglomerate, LVMH.
As Arnault expands his media empire, the acquisition of "Paris Match" follows a series of other notable media acquisitions such as Les Echos-Le Parisien, Radio Classique, and EuroArts Music International, positioning him as a formidable force in the publishing industry. This development has sparked a wave of criticism and resistance from French journalists' unions, who argue against the "absolute speaking ban" imposed by LVMH and the company's repressive environment.
