#53 Who Is Michael Ovitz

In "Who is Michael Ovitz?" by Michael Ovitz, the former CAA powerhouse and Hollywood mogul reflects on his rise and fall, revealing both his strategic genius in revolutionizing the entertainment industry and the personal costs of his ambition. Ovitz candidly discusses his aggressive tactics that earned him great success and powerful enemies, including betrayals by close friends and colleagues like Jay Moloney, Michael Eisner, and Ron Meyer. Despite reshaping the business and achieving immense wealth, Ovitz ultimately finds himself grappling with regrets, particularly missing the camaraderie with the people who were once his comrades in arms. His story culminates in a poignant realization of the importance of human connections over material triumphs, and his current role as an advisor and investor in Silicon Valley, where he finds a new sense of purpose and community.

• Speaker A emphasizes the importance of maintaining a professional distance with clients.
• Loyalty and betrayal are key issues in Speaker A's experiences.
• The speaker reflects on personal connections in business and the consequences of trust being misplaced.
• There is a distinction between clients' loyalty and friends' betrayal.

"I always told our agents, make your clients think they're your friends, but remember that they're not. Yet it would be my clients who would stay loyal, for the most part, and my friends who would betray me."

This quote highlights the speaker's strategy for managing client relationships, and the irony that clients remained more loyal than friends. It underscores the complexity of trust within professional and personal spheres.

• Speaker A feels victimized by betrayal from close associates.
• The speaker identifies a pattern where those who were supposed to be allies turned against him.
• There is an introspective examination of the reasons behind these betrayals.

"Jay Maloney, the agent I thought of as a son and as my eventual successor, would join the agency's posse of young Turks who disowned me after I left CAA. Michael Eisner, my great friend who ran Disney, would hire me as his number two, then publicly humiliate me and fire me after 14 months."

Speaker A recounts specific examples of betrayal from trusted individuals, indicating the depth of the personal and professional impact these events had on them.

• Speaker A has dedicated their life to understanding what motivates people.
• There is a reflection on the possibility of being too confident in one's judgment of others.
• Speaker A contemplates the role of their own actions in fostering resentment.

"I made it my life's work to understand people, to grasp what made them tick."

This quote illustrates Speaker A's commitment to comprehending human nature and the motivations behind people's actions, which is central to their professional life.

• Speaker A acknowledges personal change over time.
• There is a philosophical musing on the idea that success can lead to one's downfall.
• The speaker suggests that their pursuit of money and power may have had unintended consequences.

"But I did change. Of course. Those whom the gods wish to destroy, they first give a gift."

Speaker A reflects on the transformation they underwent due to their ambitions and the potential destructive nature of the gifts they received, implying that success can be a precursor to downfall.

• The book "Who is Michael Ovitz?" by Michael Ovitz is introduced.
• It is noted that the book will cover Ovitz's early life, entrepreneurial drive, and business strategies.
• The book's focus on Ovitz's mistakes, particularly in his dealings with people, is highlighted.

"Okay, so that is from the prologue of the book that I want to talk to you about today, which is, who is Michael Ovitz. By Michael Ovitz."

This quote introduces the subject of the podcast, Michael Ovitz's autobiography, which will be the primary focus of the discussion, including the themes of Ovitz's life and career.

• David introduces himself and the concept of the "Founders" podcast.
• The podcast is described as sharing ideas from biographies or autobiographies of entrepreneurs.
• David explains his method of taking detailed notes and highlights to remember key learnings.

"Every week I read a biography or an autobiography of an entrepreneur, and I just share the ideas that I learned that I thought were interesting."

David describes the purpose of the podcast and his approach to extracting and sharing valuable insights from the lives of entrepreneurs.

• David provides avenues for audience engagement, including an Amazon shop and social media.
• He invites listeners to join a form of book club by following the podcast's reading list.
• David offers a private email list where he shares notes and highlights on entrepreneurship.

"A great way to do that is go to Amazon.com shopfounderspodcast."

David encourages the audience to engage with the podcast by visiting the Amazon shop to see books covered in the podcast, suggesting a community aspect to the podcast's format.

• David outlines the structure of the podcast episode, which will focus heavily on Ovitz's early life and end of career.
• The "barbell effect" is used to describe the concentration of content at the beginning and end of Ovitz's story.
• The podcast will explore Ovitz's regrets and lessons learned from his experiences.

"I would say this more so than most other books is going to follow, more of like a barbell effect where I'm going to spend a lot of time."

This quote explains the structure of the podcast, which will focus on specific periods of Ovitz's life, providing context for the themes discussed in the episode.

• Early on, the subject recognized the potential to leverage human dependency to advance his career.
• He began by providing voluntary services, knowing others would come to rely on them.
• This strategy eventually led to increased pay and a stronger position within the company.

"They would eventually come to rely on that, and then he could use that as leverage."

The quote illustrates the subject's strategic foresight in cultivating reliance from others to increase his value and bargaining power within the company.

• The subject had an "unquenchable thirst for knowledge" about the entertainment industry.
• He utilized the company's extensive files as a learning resource, viewing them as an "encyclopedia of entertainment."
• By doing favors, he gained access to these files, which allowed him to learn the history of entertainment and the inner workings of the industry.
• The subject networked with key industry figures, such as Sam Sachs, to further his understanding and advance his career.

"I jotted down questions for Sam Sachs, who was the head of television legal affairs, who was charmed by my interest and lent me a tape of a talk he'd given at USC on contract law and entertainment."

This quote demonstrates the subject's initiative in seeking knowledge and building relationships with influential figures, which were instrumental in his career progression.

• The subject aspired to build his own company from a young age.
• Despite his low starting salary and title, he focused on the long-term goal of running William Morris.
• His rapid promotion to junior agent was still seen as a disappointment, as he missed his own deadline, indicating his high personal standards and ambition.

"I aspired to build my own company someday, but that was in the distant future."

The quote reflects the subject's long-term vision and ambition, which drove his actions and career trajectory.

• The subject believed that having a unique persona was essential for success as an agent.
• He considered various personas before settling on the "all business tough guy" who would protect clients' dreams and fix their problems.
• The subject's persona was designed to appeal to the biggest stars and directors in the industry.

"My Persona became the all make your dreams come true guy mixed with the all fix your problems guy."

The quote highlights the subject's strategic approach to branding himself in a way that would attract high-profile clients and set him apart from competitors.

• The subject and his colleagues at William Morris were dissatisfied with the leadership and sought to create their own company.
• They envisioned a new kind of agency where equity was split evenly, clients were shared, and new ideas could reshape the business.
• The "revolt" against the old guard led to the founding of CAA, with a focus on innovation and client service.

"What if guys like Ron and me had more of a say. And then what if we could run a company of our own?"

The quote captures the revolutionary mindset that led to the establishment of CAA, aiming to disrupt the traditional agency model and empower a new generation of agents.

• The subject and his partners faced legal challenges from William Morris, which they overcame with strategic bluffs and negotiation.
• Their aggressive approach to competition and client acquisition was a key factor in CAA's growth.
• The subject's willingness to play "hardball" established CAA's reputation as a formidable force in the industry.

"We unleashed hell on anyone who crossed us. For the rest of my time at CAA, I was a great friend and ally, but an implacable foe."

This quote exemplifies the subject's combative approach to business, which was instrumental in defending and expanding CAA's market position.

• The subject employed creative strategies to attract top talent, such as working for free until proving his worth.
• CAA used guerrilla marketing tactics to establish their brand and attract attention in the industry.
• The agency's innovative approach to creating work for their clients set them apart from competitors.

"I deluged him with material and signed him six months later."

The quote shows the subject's persistence and innovative thinking in client acquisition, which was critical to CAA's success.

• The subject had a vision of representing the entire "food chain" in the entertainment industry, shifting power from studios to artists.
• He focused on acquiring a critical mass of clients to reverse the power curve in favor of CAA and its talent.
• His relentless pursuit of this vision often led to ruthless business practices.

"We had to build a critical mass of clients so we could reverse the power curve from the buyers, which are the studios, to the sellers, which is us, and the talent."

This quote summarizes the subject's strategic vision for CAA, which aimed to empower artists and change the power dynamics within the entertainment industry.

• Speaker A reflects on the advice from "Ted" about working less for more happiness.
• The importance of balancing professional success with personal happiness is highlighted.
• Overworking can lead to missed life experiences and joy.

"I could have worked 10% less and it wouldn't have made a difference in my professional success, but I would have been a lot happier."

This quote emphasizes the negligible impact a slight reduction in work could have had on professional success, while significantly increasing personal happiness.

• Speaker A discusses the complexities of partnership and equity in a business.
• The natural emergence of a leader within a group can lead to equity renegotiation.
• Emotional aspects can overshadow logical business decisions, leading to distrust and unhappiness.

"Your clients burn through your energy, your expertise, and your joy."

Speaker A suggests that the demands of clients can deplete personal resources, which is a challenge in maintaining a healthy work-life balance.

"I said that if I didn't get more than the 16.67% that each of the six partners owned, I'd have to consider other options."

Speaker A expresses the need for increased equity based on their contributions, setting the stage for future conflicts within the partnership.

• Speaker A realizes the importance of emotional intelligence in business partnerships.
• The story illustrates how personal feelings and relationships can impact business decisions.
• The tension between partners is revealed, showing the complexity of long-term business relationships.

"Emotionally, though, I had just hit the self destruct button, only it would take 16 years to go off."

Speaker A acknowledges the long-term emotional consequences of their actions, which eventually led to the deterioration of relationships within the company.

• Speaker A discusses the influences that shaped the corporate culture of CAA.
• The blending of various philosophies and tactics contributed to the company's ethos.
• The importance of a strong, collaborative culture in a company's success is underscored.

"Our corporate culture was american team sports boosterism... Mixed with spartan military tactics, mixed with asian philosophy, all overlaid by the community spirit of the Three Musketeers."

This quote describes the eclectic mix of influences that Speaker A used to build the unique culture within CAA.

• Speaker A reflects on the paradox of success and the nostalgia for the early days of the business.
• The narrative explores the idea that growth and expansion may not always lead to increased happiness.
• The speaker shares insights into the emotional journey of entrepreneurship.

"The first ten years at CAA, were the best ten years of my life."

Speaker A looks back fondly on the early, formative years of the company, suggesting that the initial stages of business may be the most fulfilling.

• Speaker A details the grueling daily schedule and the toll it takes on personal life.
• The narrative explores the sacrifices made for professional success and the impact on family life.
• The relentless pace of work is questioned in terms of sustainability and personal well-being.

"Treating my clients like family was hard on me and my actual family."

Speaker A shares the difficulty in maintaining the intense level of commitment to clients while also trying to preserve family relationships.

• Speaker A delves into the psychological aspects of entrepreneurship and ambition.
• The tension between personal identity and the role of a leader is explored.
• The pursuit of success is contrasted with the desire for personal fulfillment.

"Even as everyone was telling me to slow down, I wanted to speed up."

Speaker A describes the internal conflict between the advice of others and their own ambition, highlighting the relentless drive of entrepreneurs.

• Speaker A confronts the realization that success in the current role is no longer fulfilling.
• The speaker expresses the exhaustion from the demands of the job and the desire for change.
• The narrative touches on the idea that professional success may not equate to personal satisfaction.

"I was tired of submerging myself, drowning myself in the lives of my clients and their families and significant others."

Speaker A communicates a deep sense of fatigue from the all-consuming nature of their work, signaling a need for change and a different approach to life and career.

• Speaker A discusses the dissatisfaction of an agent with the superficial aspects of the job, like catering to creature comforts.
• The agent feels embarrassed about his profession and seeks external validation.
• He desires to shift from being an agent (sell side) to running a studio (buy side), seeking respect and validation.
• The agent is in negotiations to run studios but feels the need for equity, unlike the temporary nature of an agent's earnings.
• External validation is critiqued as a path to unhappiness, as it's an unfulfillable desire.

"You're an adult. Run your own life. And so, in the midst of being tired, he also talks about the fact that he's embarrassed to be an agent."

This quote indicates the agent's frustration with the trivial aspects of his job and his embarrassment about his profession, driving his desire for a more respectable and self-directed career.

• The agent has made money but yearns for equity, highlighting the fleeting nature of wealth without ownership.
• Observing the success of others like Bill Gates and executives with stock options, the agent's appetite for 'corporate buccaneering' grows.
• The agent desires to be among the few who can greenlight movies, seeking the prestige of a public company job.
• The idea that validation and respect from others are ultimately unattainable and a 'game you can't win' is emphasized.

"Once an agent stopped working, there was no accrued equity to fall back on."

This quote reflects the agent's realization that his current career offers no long-term financial security, unlike other professions where equity can be built and sustained.

• The agent is involved in negotiating deals, such as Sony buying MCA, and aims for executive positions within these companies.
• Personal relationships in business are highlighted, with betrayals and grievances affecting professional outcomes.
• The agent's partnership with Ron, his 'blood brother,' deteriorates, leading to feelings of betrayal and the end of their collaboration.
• The agent's pursuit of validation leads to a loss of relationships and respect within the industry.

"He's like, second in command. The deal falls through, and he's like, okay, this isn't going to work."

This quote captures a critical moment when the agent's plans to ascend to a high executive position fall apart, reflecting the volatility of industry dynamics and personal ambitions.

• The agent reflects on his career choices, realizing that striving for validation was a dead-end path.
• Despite accumulating wealth, the lack of fulfillment and the loss of industry power lead to personal attacks and regrets.
• The agent acknowledges that his focus on business and friendship intermingling was a mistake, causing personal and professional conflicts.
• He expresses a desire to have pursued a career as an artist or architect, where creation doesn't entail making enemies.

"I always thought it was vital to mix business and friendship."

This quote reveals the agent's initial belief in the synergy of business and personal relationships, which he later recognizes as a source of conflict and regret.

• The agent finds a new purpose in life through philanthropy, investment, and advising entrepreneurs after meeting influential figures like Mark Andreessen.
• He embraces the role of a student learning from the experiences of others in the technology industry.
• The agent's involvement with Andreessen Horowitz exemplifies a successful transition from entertainment to tech, leveraging his past experiences for new ventures.

"They asked me to join the Loudcloud board, and so began a new chapter on my life."

This quote signifies the agent's shift from entertainment to technology, marking the start of a rejuvenating phase in his career.

• The agent seeks to mend relationships with former colleagues, including Ron and David Geffen, after years of animosity.
• He acknowledges the importance of reconciling past grievances and the impact of personal growth on his current perspective.
• The agent reflects on the camaraderie and friendships as the most missed aspects of his past career, highlighting the significance of human connections in business.

"I felt like I was getting divorced."

This quote metaphorically describes the emotional impact of the agent's professional separation from Ron, underlining the depth of their partnership and the pain of its dissolution.

• The agent contemplates his legacy, recognizing the impact and success he had in reshaping the entertainment business.
• He experiences a sense of nostalgia and loss when revisiting his old agency building, comparing it to the feeling of revisiting one's childhood home.
• The agent concludes that despite his achievements, the camaraderie and relationships with colleagues are what he values most from his career.

"In the silence, I discovered that the only thing I really miss about the agency business was the camaraderie. My comrades and friends."

This quote encapsulates the agent's ultimate realization that beyond the power and success, it is the human connections and shared experiences that are most cherished.