To raise money, Seagram head Edgar Bronfman Jr. sold Universal's television holdings, including cable network USA, to Barry Diller (these same properties would be bought back later at greatly inflated prices). In June 2000, Seagram was sold to French water utility and media company Vivendi, which owned StudioCanal; the conglomerate then became known as Vivendi Universal. Afterward, Universal Pictures acquired the United States distribution rights of several of StudioCanal's films, such as Mulholland Drive (which received an Oscar nomination) and Brotherhood of the Wolf (which became the second-highest-grossing French-language film in the United States since 1980). Universal Pictures and StudioCanal also co-produced several films, such as Love Actually (an $40 million-budgeted film that eventually grossed $246 million worldwide). In late 2000, the New York Film Academy was permitted to use the Universal Studios backlot for student film projects in an unofficial partnership.

Who was the head of Seagram?