The Icarus Factor: The Rise and Fall of Edgar Bronfman Jr

Robert W. Sexty is a professor of commerce and business administration
at Memorial University of Newfoundland. He is the author of Canadian
Business: Issues and Stakeholders.

Few family businesses survive to the third generation, as family members
often lack the necessary managerial capabilities to sustain the
company’s success. The founder of Seagram Co., Samuel Bronfman, knew
this and had carefully selected his grandson, Edgar Jr., to provide the
third-generation leadership. The wings were provided but, unfortunately,
Edgar Jr. flew in directions that led to disaster.

The Icarus Factor became an unauthorized biography after Edgar Jr.
reneged on an agreement to co-operate. Despite this setback, McQueen
wrote an insightful book about his subject’s personal and business
lives using in-formation gathered from dozens of family members and
business associates, as well as from extensive research of previously
published materials.

Edgar Jr.’s life is traced from childhood through to his merging of
Seagram with Vivendi, a French conglomerate. Few of his many business
initiatives were considered successful, as he consistently misjudged
business dynamics. Somehow serious consequences were avoided until the
merger, which resulted in the Bronfman family losing over half its
fortune. Samuel Bronfman’s worst fear had been realized despite his
efforts.

McQueen, an experienced business writer, suggests that Edgar Jr. failed
because he lacked both formal management education and hands-on
experience in the business. His management style was “amateurish”
and his father provided unwavering support instead of much-needed
guidance. McQueen’s account not only provides readers with a balanced
view of Edgar Jr.’s rise and fall, but also outlines the dangers
inherent in family management of major business enterprises.

Edgar Jr.’s wings still have a little lift left in them. After the
Vivendi disaster, he and others acquired Warner Music Group, which has
been successful in selling digital music. Maybe he learnt something
after all, but it was a hard and expensive way to do it.