I am Hollywood

Chapter 673: Chapter 674: I Will Chain Myself to Desk

Chapter 673: Chapter 674: I Will Chain Myself to Desk

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[Chapter 674: I Will Chain Myself to Desk]

On the issue of Universal, both Panasonic and Seagram had a very urgent inclination toward a deal. After months of negotiations, the two sides had reached a preliminary agreement. They only needed to clarify the final debt information and personnel disputes to finalize the transaction.

During these months, Michael Eisner had been lobbying Edgar Bronfman, the head of Seagram, to help him remove Michael Ovitz from Universal. He went to great lengths to exaggerate Ovitz's alleged misconduct during his time as Universal's president.

Michael Ovitz had been accustomed to using CAA's accounts to fund his luxurious personal expenses when he was at CAA. As a private partnership, CAA did not have to pay as much attention to financial reporting as a public company would. As the founder of CAA, Ovitz held a unique position and could act freely without anyone daring to question his spending habits. However, after taking on the role of Universal's president, Ovitz failed to recognize he had transitioned from a private company to a major public corporation. He continued to maintain his lavish lifestyle, presuming that expenses for a luxurious office renovation or gifts for Hollywood elites should be reimbursed by Universal without question.

This behavior marked the first point of conflict between him and Eisner. Eisner strongly disagreed with Ovitz's somewhat capricious personal conduct.

Meanwhile, the strong urge for control that Ovitz developed at CAA clashed with Eisner's dominant personality, which was also a source of contention between them.

As the head of Seagram, Edgar Bronfman certainly could not fail to notice this dynamic. Listening to Eisner criticize Ovitz using the movie Junior as an example shortly after arriving, Bronfman resolved to oust Ovitz from Universal before the deal was finalized.

This was partly a result of Eisner's lobbying, but as the head of a large conglomerate, Bronfman was also focused on the stability of Universal after Seagram's acquisition. He had no intention of buying a film company rife with internal conflict among its executives. Although he was an outsider to Hollywood, Bronfman understood that for any company to grow stronger, internal management stability was a must.

After Eisner finished speaking, Bronfman asked, "Michael, I just want to know one thing: how much will it cost to get Ovitz out of Universal?"

Michael Eisner's face flushed, and he coughed awkwardly. If it weren't for the golden parachute agreement he had personally instigated, it would have been easy to get Ovitz out. Ultimately, this was his oversight, yet Eisner would never admit it. Moreover, he made that decision out of desperation; having finally gained complete control of Universal, he did not want Panasonic to interfere with its management changes due to his heart surgery.

"According to the agreement we signed, if we request Ovitz to resign without any significant decision-making blunders, Universal needs to pay a cash compensation of $50 million and an additional $50 million in stock options," Eisner explained, gauging Bronfman's reaction before adding, "However, if Ovitz resigns voluntarily, the cost to Universal would be much lower. I heard that Sony is currently in talks with Ovitz for him to become the CEO of Columbia. He might very well choose to leave on his own. Of course, even if Ovitz refuses to resign voluntarily, we can take this opportunity during the deal to include a clause regarding his departure in the negotiations, forcing the Japanese to bear the cost of his exit."

After hearing Eisner's words, Bronfman thought for a moment while tapping the armrest of his chair and said, "In that case, please compile all the information you've shared about Ovitz during this time. This afternoon, I will present the materials as evidence of Ovitz's unsuitability for the position of Universal's president to the Panasonic negotiation team, formally adding his departure to our negotiation terms."

A flicker of joy crossed Eisner's face, and he nodded, "I'll get on it right away."

...

Hollywood was once again stirred up by events toward the end of 1994. Internal management upheavals at Columbia began, and Universal Pictures found itself facing another change of ownership. The already high-profile Flower Films saw a surge in recognition, impressively breaking through with their blockbuster, Mission: Impossible, much like another firefly beginning to shine.

Michael Ovitz set down the Hollywood Reporter in his hands, summarizing the latest major Hollywood events, only to feel disappointed to realize that none of it had much to do with him anymore.

This made him reminisce about a few years ago when he was still at the helm of CAA -- not only orchestrating events between major film studios but also personally steering Sony's acquisition of Columbia and Panasonic's acquisition of Universal, two multibillion-dollar deals.

However, now, though he was unwilling to admit it, Ovitz had found himself with the abrupt transition from being a Hollywood mastermind to feeling like just a mere pawn. After running CAA for two decades, he had accumulated a fortune, yet for someone like him who was used to being at the pinnacle of Hollywood, losing power was a hundred times more painful than losing money. Ovitz understood that the moment he sold all his stakes in CAA, his chance to return to the agent industry was slim. Following his falling out with Michael Eisner, remaining at Universal had lost all meaning, prompting Ovitz to start considering his next move. Fortunately, the turmoil at Columbia presented him a chance to make a comeback. Driving into the Culver City Columbia Pictures lot, just as Michael Ovitz got out of the car, Idei Nobuyuki already came over with several attendants.

A few years prior, when Sony acquired Columbia, Ovitz had dealt with Idei Nobuyuki; although he sensed Umaoka's fatigue and anxiety at that moment, he warmly embraced him nonetheless.

The Columbia Pictures executive offices noticeably featured many Asian faces coming in and out. Idei Nobuyuki led Ovitz into the former luxurious office of Peter Goober, but neither Goober nor John Peters was present.

Once seated in the office and exchanging brief pleasantries, Idei Nobuyuki bluntly stated, "Mr. Ovitz, you must already know that Columbia's situation is dire right now, and Sony desperately needs a management figure who can turn things around."

"In Hollywood, any film company will go through highs and lows. Columbia has decades of accumulated experience and the backing of a giant like Sony; revitalization is definitely just a matter of time," Michael Ovitz confidently replied. "Of course, all of this hinges on the fact that the company needs a competent manager."

Idei Nobuyuki nodded in agreement, "So, Mr. Ovitz, since you've accepted my invitation today, you must be interested in the CEO position at Columbia. Can you share how you plan to manage this company?"

After a brief contemplation, Ovitz responded, "To speak frankly, Mr. Nobuyuki, the fundamental survival key for a film company comes down to one thing: the ability to produce outstanding box office hits. During my time at CAA, I successfully pitched dozens of film projects to Hollywood studios every year. I believe there are very few in Hollywood with more experience in film project operations than me."

While the triopoly of Hollywood talent agencies had significantly diminished CAA's monopoly, Ovitz's achievements during his time at CAA were still widely acknowledged. Idei Nobuyuki valued him mainly because of this track record. After hearing Ovitz's response, he slightly nodded, "Mr. Ovitz, then Sony wholeheartedly welcomes you to lead Columbia. I wonder what your salary requirements would be?"

"My salary request isn't high; as long as it's..." Ovitz paused, realizing that Idei Nobuyuki likely didn't want to hear Goober's name. He quickly revised, "As long as it's on par with the previous head, that would be fine. However, I want to ensure that once the company's financial standing improves, I receive the bonuses and dividends I deserve."

Idei Nobuyuki was very pleased with Ovitz's terms, nodding repeatedly, "Of course! As long as Columbia's operations improve, you will certainly receive your fair recompense. Is there

anything else?"

Ovitz said, "Yes, there's one crucial point. I do not want external factors to constrain my ability to manage the company, so I need to secure absolute operational autonomy at

Columbia."

Upon hearing the term "operational autonomy," Idei Nobuyuki visibly shuddered.

If not for previously granting operational autonomy to those incompetents Peter Goober and John Peters, Columbia would not have fallen to its current state. In recent days, with the deepening financial audits at Columbia, Idei Nobuyuki hadn't slept a single good night. Under the profligate and irresponsible management of Goober and Peters over the last five years, Columbia's internal operations and financial health had deteriorated to a shocking extent. To minimize losses and lessen tax burdens, Sony would have to write down Columbia's assets. Statistics from the recent period indicated that Columbia could face asset write-downs amounting to $2.1 billion, which would mean a shocking $2.1 billion loss on Sony's annual

financial report.

$2.1 billion!

In the half-century since Sony's inception, they had never encountered such a massive loss.

Idei Nobuyuki had not dared to relay this grim news back to Sony Headquarters. Their chairman, Akio Morita, had suffered a stroke a few years earlier, and Idei Nobuyuki worried that suddenly hearing such bad news might make Idei worse.

Now, hearing the term "operational autonomy" again from Michael Ovitz made Idei Nobuyuki feel a chill all over; he shook his head repeatedly, saying, "Mr. Ovitz, while we can negotiate other terms, I must ask you to refrain from mentioning operational autonomy anymore. You've seen, Sony has suffered enough headaches over it, and we certainly will not allow Columbia to be left to a single manager again."

Ovitz replied, "Mr. Nobuyuki, you should understand that I'm different from Peter Goober. Frankly, I still don't get why Sony initially hired such incompetent people. I have every confidence in successfully managing Columbia, but I need adequate power and trust. If Sony loses trust in the next manager of Columbia because of Goober's impact, I can assure you, it will be incredibly difficult for Columbia to recover. Hollywood differs from other industries; what is needed in a Hollywood film company is a paternalistic management style, not a so- called modernized corporate management model. Just look at the management structure of the seven major studios to see that I'm not lying. Sony's previous approach of granting Goober autonomy was not wrong; the biggest mistake was simply choosing the wrong

person."

A hesitant look appeared on Idei Nobuyuki's face; he knew Ovitz's points weren't inaccurate, but Sony had just been bitten hard by a "viper" and it was impossible to not fear it again.

"Well, it's dinner time. How about..." Just as Idei Nobuyuki was about to invite Ovitz to dinner to continue their conversation, an assistant knocked on the open office door and approached the two men who were deep in discussion.

"President, I think you need to take a look at this," the assistant said, casting a strange glance at Michael Ovitz and handing a fax document to Idei Nobuyuki. Curious, Idei Nobuyuki quickly flipped open the folder, knowing that the assistant wouldn't intrude on their meeting without good reason. The document must contain extremely important information.

After skim-reading a few pages, Idei Nobuyuki looked up and asked the assistant waiting at his side, "Where did this document come from? And is this information... accurate?" "This document started circulating after today's negotiation meeting between Panasonic and Seagram. Now..." The assistant glanced at Michael Ovitz, an expression of somewhat malicious glee crossing his face, "now... the whole of Hollywood is buzzing about it. I think it should be accurate."

Idei Nobuyuki nodded slowly, gesturing for the assistant to leave. He carefully read through the document in his hand, frowning deeper with each line, before letting out a soft sigh and handing the paper to the already visibly uneasy Michael Ovitz. "Mr. Ovitz, let's discuss our cooperation later; I think you need to address this matter now."

Ovitz took the document and, upon flipping through just a few pages, his expression changed dramatically. He suddenly stood up, looked at Idei Nobuyuki, and said, "Mr. Nobuyuki, I'm

sorry, but I think I need to leave."

...

Hastily exiting the office, Ovitz trembled slightly as he climbed into his car. After instructing

the driver to go, he opened the document again, his expression growing increasingly furious.

The document outlined a slew of "evidence" of his unsuitability for the presidency of Universal. However, Ovitz viewed this document as a blatant attempt to destroy his career in Hollywood.

Just the accusation that he spent $2 million renovating an office made Ovitz feel his chances of collaborating with Sony had shrunk significantly. The media had primarily criticized both Goober and Peters for their reckless spending at Columbia. But Ovitz believed he was fully entitled to enjoy such privileges; many heads of Hollywood also enjoyed these benefits. However, having just experienced Goober's extravagance, Sony would surely be very wary of

such matters.

Furthermore, other suggestions he made regarding poaching talent from other record companies to expand Universal Music's operations, investing more in the television department, and inviting top celebrities to collaborate with Universal had been spun into

evidence of his "grandstanding."

Although their friendship had broken down, Ovitz still could not believe that Eisner would resort to such drastic measures to push him out of Universal.

"I was already planning to leave voluntarily, why are you treating me this way?"

"Why like this!" The more he dwelled on it, the angrier he became. Michael Ovitz picked up the mobile phone

next to him, trembling as he dialed Michael Eisner's number.

As soon as the call connected, Michael Ovitz seethed, "Alright, you've achieved your goal. I'm

telling you, Michael, you won't chase me out of Universal. I will chain myself to Universal's

desk."

*****

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