Michael Ovitz

Michael Ovitz
Born (1946-12-14) December 14, 1946
Chicago, Illinois
Occupation Co-founder of the Creative Artists Agency
President of the Walt Disney Company
Spouse(s) Judy Reich (m. 1969)
Children Christopher Ovitz
Kimberly Ovitz
Eric Ovitz

Michael S. Ovitz (born December 14, 1946) is an American businessman, investor, and philanthropist. He is a talent agent who co-founded Creative Artists Agency (CAA) in 1975 and served as its chairman until 1995. Ovitz later served as President of the Walt Disney Company from October 1995 to January 1997.

Early life

Ovitz was born to a Jewish family[1] in Chicago, Illinois, the son of a liquor wholesaler. Raised in Encino, California, he attended Birmingham High School in Van Nuys, a classmate of Sally Field. While a pre-med student at UCLA, he began his entertainment career as a part-time tour guide at Universal Studios. Upon graduating from UCLA in 1968 with a degree in theater, film, and television, he secured a job in the mailroom at the William Morris Agency. Within a year he was promoted, becoming a highly successful television agent. Six years later, he and four other young colleagues left William Morris to found Creative Artists Agency.[2]

Creative Artists Agency

Ovitz founded Creative Artists Agency in 1975 along with fellow William Morris Agents Ron Meyer, Bill Haber, Rowland Perkins, and Mike Rosenfeld. Borrowing only $21,000 from a bank,[3] the agents rented a small office, conducting business on card tables and rented chairs, their wives taking turns as agency receptionist.[2]

Under his direction, CAA quickly grew from a start-up organization to the world’s leading talent agency, expanding from television into film, investment banking, and advertising.[4] Ovitz was known for assembling “package deals”, wherein CAA would utilize its talent base to provide directors, actors and screenwriters to a studio, thus shifting the negotiating leverage from the studios to the talent.[5] As CAA rose in stature Ovitz became one of the most powerful men in Hollywood.[6] Promoted to President, then to Chairman of the Board, his roles at CAA were numerous. He served as talent agent to Hollywood actors Tom Cruise, Dustin Hoffman, Kevin Costner, John Belushi, Michael Douglas, Bill Murray, Sylvester Stallone, and Barbra Streisand, as well as directors Steven Spielberg, Barry Levinson, and Sydney Pollack.[7] He also provided corporate consulting services, helping negotiate several major international business mergers and deals including Matsushita’s acquisition of MCA/Universal, the financial rescue of MGM/United Artists, and Sony’s acquisition of Columbia Pictures.[8] His signing of Coca-Cola as a CAA client from agency McCann-Erickson had a significant impact on the advertising industry.[9] He negotiated David Letterman's move from NBC to CBS, chronicled in the book The Late Shift: Letterman, Leno, and the Network Battle for the Night by Bill Carter.[10]

Disney President

Ovitz resigned from CAA in 1995 to become president of the Walt Disney Company under chairman Michael Eisner. Ovitz quickly grew frustrated with his role in the company and vague definition of duties.[11] After a tumultuous year as Eisner's second in command, he was dismissed by Eisner in January 1997[12] and left Disney with a (previously agreed upon) severance package valued at $38 million in cash and an estimated $100 million in stock.[13]

Disney shareholders later sued Eisner and Disney's board of directors for awarding Ovitz such a large severance package.[13] Later court proceedings reflect that Ovitz' stock options were granted when he was hired to induce him to join the company, not granted when he was fired. In 2005 the court upheld Disney's payment.[14]

Artist Management Group and controversy

In January 1999, Ovitz formed CKE, comprising four distinct companies: Artist Management Group (AMG), Artist Production Group (APG), Artist Television Group (ATG) and Lynx Technology Group (LTG). In 2002 Ovitz sold AMG to Jeff Kwatinetz for an estimated $12 million, which was merged into his management group The Firm.[15]

After the sale of AMG, Ovitz became the subject of controversy for remarks made in a Vanity Fair interview,[16] wherein he blamed the downfall of AMG upon a Hollywood cabal led by Dreamworks cofounder David Geffen which Ovitz described as the "gay mafia" (despite the fact that most of its purported members were not gay).[16] In addition to Geffen, the list included New York Times Hollywood correspondent Bernie Weinraub, Disney Chairman (and former employer) Michael Eisner; Bryan Lourd, Kevin Huvane, and Richard Lovett, partners at CAA, Universal Studios president Ronald Meyer (Ovitz's former partner at CAA); and Vivendi Universal Entertainment CEO Barry Diller. "If I were to establish the foundation of the negativity," Ovitz stated, "it all comes down to David Geffen and Bernie Weinraub. Everything comes back to those two. It’s the same group [quoted] in every article."[16] He later apologized for his Vanity Fair comments.[17]

Personal life

Ovitz now acts as a private investor who has informally advised the careers of luminaries such as Martin Scorsese. Active in philanthropy, he donated $25 million in 1999 to spearhead fund raising efforts for UCLA's Medical Center,[18] and has contributed significantly to numerous other philanthropic endeavors.[19] A private investor and businessman, his notable activities have ranged from attempts to bring an NFL team to the Los Angeles Coliseum [20] to ventures in online media.[21]

Ovitz is considered among the world's top 200 art collectors.[22] His contemporary pieces include works by Pablo Picasso, Jasper Johns, Willem de Kooning, Barnett Newman, Mark Rothko, and many others.[23]

His daughter is New York fashion designer Kimberly Ovitz.[24]

In 2015 Ovitz became engaged to Tamara Mellon despite still being legally married to his wife Judy.[25][26]

Business positions
Preceded by
Frank Wells		 Disney Presidents
1995–1997 		Succeeded by
Robert Iger

References

  1. ↑ New York Times: "Michael Ovitz Is on the Line" By Lynn Hirschberg May 09, 1999
  2. 1 2 Castro, Janice (1989-02-13), "Pocketful of Stars: Michael Ovitz", Time
  3. ↑ When Marc Met Mike–Andreessen Interviews Ovitz
  4. ↑ Ovitz, Michaeal - U.S. Media Executive
  5. ↑ Cieply, Michael (1989-07-02), "Inside the Agency - How Hollywood works: Creative Artists Agency and the men who run it", Los Angeles Times
  6. ↑ Appelo, Tim (Nov 2, 1990), "101 Most Powerful People in Entertainment", Entertainment Weekly
  7. ↑ "Michael Ovitz: A Tough, Innovative Superagent Emerges as King of the Hollywood Deal", People, Dec 31, 1990
  8. ↑ Castro, Janice (Apr 19, 1993), "In A Rare Interview, Ovitz Defends His Power", Time
  9. ↑ Top 100 People of the Advertising Century
  10. ↑ Bill Carter (January 30, 1994). "Behind the Headlines in the Leno -- Letterman War". The New York Times.
  11. ↑ "Michael Ovitz", Yahoo
  12. ↑ Masters, Kim (Aug 16, 2004), "Deposed: The strange hiring and firing of Michael Ovitz.", Slate
  13. 1 2 Brehm v. Eisner, 746 A.2d 244 (Delaware, 2000)
  14. ↑ Holson, Laura (Aug 10, 2005), "Ruling Upholds Disney's Payment in Firing of Ovitz", New York Times
  15. ↑ Holson, Laura; Weinraub, Bernard (May 13, 2002), "Some See a Young Ovitz in Emerging Power Broker", New York Times
  16. 1 2 3 Burrough, Bryan (August 2002), "Ovitz Agonistes", Vanity Fair
  17. ↑ Gorman, Steve (July 3, 2002), Ex-Hollywood Superagent Regrets 'Gay Mafia' Remark
  18. ↑ Purdum, Todd (May 23, 1999), Ex-Mogul at Helm Again, for Hospital, The New York Times
  19. ↑ Steinburg, Jacques (June 10, 1998), Voucher Program for Inner-City Children, The New York Times
  20. ↑ Ovitz's Coliseum Design Dazzles NFL in Preview
  21. ↑ Pollack, Andrew (May 21, 1999), THE MEDIA BUSINESS; Ovitz Helps Form On-Line Entertainment Venture, The New York Times
  22. ↑ The ARTnews 200 Top Collectors
  23. ↑ Money makes the art go round
  24. ↑ New York Fashion Week fall 2013: Kimberly Ovitz
  25. ↑
  26. ↑
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