When American tech entrepreneur Michael Baum bought a prestigious
winery in France's Burgundy region it caused a trans-Atlantic spat.
"[French
newspaper] Le Figaro covered the announcement on its website, and there
were about 2,500 comments on the article," says Michael, 57.
"You
could split the comments right down the middle. Half of them were 'damn
foreigners stealing our heritage'. the other half were 'if it wasn't
for Americans you'd all be eating sauerkraut right now'.
"So you can say it was pretty divisive."
This
was back in 2014, when Michael purchased Chateau de Pommard and its 25
hectares (62 acres) of vines for an undisclosed sum in the many
millions.
He could afford the price because he had made a fortune in Silicon
Valley, most notably as the founder and former chief executive of a
software company hardly any of us have heard of - Splunk.
It is
complicated stuff, but in simple terms, its software allows firms to
monitor their data and security systems. With annual revenues of $1.8bn
(£1.6bn), Splunk's customers are many of the world's largest companies.
They include 92 of the Fortune 100 list of the biggest 100 businesses in
the US by annual turnover.
Michael and his two co-founders
launched Splunk back in 2003, and today it is a listed company with a
market capitalisation (the combined value of all its shares) of more
than than $16bn. While Michael retired from day-to-day involvement in
the business in 2009, he says that he remains the largest individual
shareholder.
Today, in addition to running his French winery, or
domaine, he sits on the board of eight other companies in the US and
Europe, and he has a multitude of additional business investments. He is
also the founder of a mentoring and funding scheme for young
entrepreneurs called Founder.org.
"I like to keep busy," he says.
"Certain people, call them entrepreneurial or creative types, are just
wired that way. For me work is about creativity, it is about building
things. That is what is exciting to me."
Born and raised in
Philadelphia, Michael says he had little interest in computers until his
second year at the city's Drexel University in the early 1980s. Then,
following a visit to the college by the late Steve Jobs, everyone
purchased an Apple computer.
"All of a sudden my brain went 'how do these work?'," says Michael. "So I went headlong into software."
Switching
his main university course from electrical engineering to computer
science, it set him on an entrepreneurial career path in tech sector.
After
graduating, Michael's first business venture was a software system for
investors that studied past stock market conditions to try to predict
future performance. Called Reality Online, it was ultimately purchased
by the Reuters business information company.
Then armed with a
master of business qualification from the University of Pennsylvania's
Wharton School, he moved to Silicon Valley.
Other businesses he
successfully grew and sold included a software system for early handheld
computer devices, called Pensoft, and online money exchange firm
Dotbank.
However, living in California, America's main wine growing state, he didn't like American wine.
"I
didn't think I liked wine when I was a younger man, because I didn't
like the American stuff," he says. "It is more often too heavy, too
sweet, too alcoholic.
"Then I went to Europe for the first time
when I was 28, and tried French wine for the first time. And it was a
huge revelation.
"French wine is far more elegant, far more mineral, far more traditionally made. It is night and day.
"Then
in 2012 we [my wife and I] moved to Paris for a year, just to take a
hiatus, and I started looking more intensely at doing something in wine
in France. We went to Burgundy, and I was like 'this is it, this is
ground zero, this is the benchmark'. I fell hard for Burgundy wines."
Home
to some of the most expensive, and highly-prized wines in the world,
Burgundy predominately produces white wines made from chardonnay grapes,
and reds made from pinot noir. The wineries and vineyards are often
very small, with some producers owning just a few rows or plots of vines
here and there.
Located some 300km (180 miles) south east of Paris, the region was
until recent years informally closed off to foreign investment because
the existing French owners get first refusal on any neighbouring
wineries, vineyards and plots that come up for sale. And they are mostly
snapped up.
For this reason, overseas investment in French wine
has historically been focused on the far larger Bordeaux area, near the
Atlantic coast in the south west of the country.
Michael was able
to buy Chateau de Pommard, and become the first American to buy a
winery in Burgundy, thanks to a bit of luck - the previous owner had
based the firm that controlled it in Luxembourg rather than France.
He
now divides his time between Burgundy and Silicon Valley. "It is fun to
go back and forth, and experience two dramatically different worlds,"
he says.
Since Michael invested in Burgundy, another American has
followed suite - sports billionaire Stan Kroenke, the owner of the LA
Rams American football team, and England's Arsenal FC.
Tom
Ashworth, chief executive of UK wine merchants Yapp Brothers, says there
is growing international interest in buying top Burgundy wineries,
because the wines they produce have surged in global popularity in
recent years.
"It's not too surprising that as wine investors
have turned their attention from buying bottles of Bordeaux to bottles
of Burgundy over the past decade, so billionaires are pocketing the
domaines themselves," says Mr Ashworth.
He adds that it also helps that the most prestigious sub region of
Burgundy - the Cote d'Or - is far more picturesque than the main
vineyard area of Bordeaux.
But if Michael had to pick just one region - Silicon Valley or Burgundy - which would it be?
"They are like chocolate and peanut butter, I like them both together," he says.
https://www.bbc.com/news/business-51950286?intlink_from_url=https://www.bbc.com/news/world&link_location=live-reporting-story