PDF Summary:Who Is Michael Ovitz?, by Michael Ovitz

Michael Ovitz, the former co-founder of Creative Artists Agency, became one of the most powerful figures in the entertainment industry by revolutionizing the role of talent agents. In Who Is Michael Ovitz, Ovitz shares the strategies and tactics that transformed CAA into an industry titan, from uniting agents in a collaborative environment to packaging talent and creative elements as pre-approved deals for studios.

The book also explores Ovitz's personal motivations, from his father's advice to his grandmother's high expectations, along with the tensions between his meteoric professional rise and the isolation it created in his personal relationships. Ovitz recounts his transition from Hollywood to Silicon Valley, where his tenacity and relationship-building skills helped guide tech giants like Andreessen Horowitz and Palantir.

(continued)...

The way Ovitz conducted business regrettably spilled over into his personal life, leading to adverse effects on his family. His acknowledgment of the profound commitment to his profession, often involving up to fourteen hours of work each day and rarely enjoying a weekend without work, concedes the considerable pressure it placed on his marriage. It also distanced him from his children, who often had to schedule time with him weeks in advance. Even during vacations or while present at his children's school functions, he frequently struggled to set aside his work-related demeanor.

The challenges of balancing work and family, evident in Ovitz’s obsessive work ethic and chronic inability to turn off the agency part of his being even while on vacations and at his children's events

Ovitz explores the difficulties of balancing unwavering commitment to his professional life with the responsibilities he has towards his family. He attempted to manage his kids’ careers and interests the way he did at CAA: “Here’s what you could be doing better,” “Here are the people you need to know." He admitted that his hands-on approach to parenting his children led to tension, but he struggled significantly to suppress his tendency to guide their life choices.

The foundational impact of his paternal lineage and matriarch shaped him.

His father's cautions regarding the inevitability of treachery shaped his cautious approach to personal relationships, compelling him to place his professional life and the agency at the forefront.

Ovitz explores his formative years, sharing how his father's unrealized aspirations and his grandmother's frequent references to these goals shaped his determination to succeed in the entertainment industry.

Ovitz was deeply influenced by his father's advice, who, after a four-decade tenure marketing Seagram's merchandise, warned him about the dangers of being at the mercy of another's authority. During his time as a tour guide at Universal Studios, Michael Ovitz developed a connection with the company's head, Lew Wasserman. During a tour, Ovitz had a significant conversation with Wasserman, who asked about how the tour was going without expressing any personal interest. The meeting with Wasserman instilled in him a profound respect for Wasserman's achievements and a sense of superiority compared to others who hadn't achieved as much, traits that stayed with him throughout his career.

His grandmother instilled in him a relentless pursuit of success from an early age, which influenced his view to regard every interaction, whether personal or professional, as transactional.

Ovitz narrates the period during which his grandmother, Sarah, moved in to live with his family at the age of seven, and this family setup continued for seven years. Sarah often spoke of her uncle as a role model for him, citing his success in property development. She asserted that his father failed to fulfill his potential, a situation influenced by his experiences in the Great Depression.

Sarah's critique of his father, coupled with her steadfast backing of Ovitz, sowed seeds of doubt in his mind about his own abilities, doubts that persisted as he was founding his talent firm. Michael Ovitz was often motivated by a deep-seated fear of failure and a strong desire to fulfill Sarah's perception of his potential, frequently reiterating her conviction that he was destined to exceed what his father had accomplished. This fear of failure, in turn, reinforced his view of relationships as essentially transactional – an exchange of favors in which he must always give a little bit more in the hopes of being rewarded with loyalty.

The advantages and risks associated with his method of forming friendships.

Michael Ovitz's relentless dedication to his career took precedence over fostering personal relationships, leading to the deterioration of his once strong relationship with Ron Meyer, whom he established Creative Artists Agency with, highlighting the difficulty in maintaining genuine friendships while ambitiously advancing one's professional life.

Ovitz maintained a steadfast commitment to his professional endeavors and deliberately distanced himself to prevent the formation of bonds with potential rivals. Michael Ovitz was constantly immersed in his professional duties, rarely taking time for leisure or attending social events outside of his business network, which included clients, colleagues, and essential industry connections.

The approach resulted in substantial advantages for the Creative Artists Agency. However, it also exacted a steep price on a personal level. Michael Ovitz and Ron Meyer had a profound connection, frequently anticipating each other's thoughts, they spent holidays together with their loved ones, and maintained regular communication, sometimes talking up to thirty times in one day. To ensure the company's financial security, Ovitz imposed a stringent budget on Meyer, who was grappling with gambling debts, and withdrew his privilege to charge expenses to the firm's line of credit. The humiliation of this experience damaged their relationship irrevocably. Michael Ovitz granted permission for Meyer to initiate conversations with Edgar Bronfman Jr., culminating in Bronfman offering the role of Chief Operating Officer at the recently purchased entertainment company, a role Ovitz had long coveted. Meyer's swift agreement solidified Ovitz's departure from the agency.

Under the influence of Barry Lowen and Michael Crichton, he delved into the world of art collecting, marking a notable shift from his usual business-focused dealings with acquaintances and clientele.

Despite his cautious stance on forming close bonds, Ovitz still found some enjoyment in the authenticity of real connections. During their time at William Morris, Barry Lowen, who had developed a strong rapport with Bill Haber, played a mentorship role for Ovitz and provided crucial guidance when he began assembling his fine art collection. Lowen mentored him in honing his artistic tastes, facilitated introductions to gallery owners, and laid the groundwork for his admiration of art through museum visits. Ovitz continued to be significantly influenced by their relationship, even following Lowen's passing in 1985. Lowen appointed Ovitz as the steward for his property, a decision that led to Ovitz acquiring his treasured art library, a collection that holds significant sentimental value and mirrors their shared passion.

As the 1970s were drawing to a close, Michael Ovitz initiated a working relationship with the author Michael Crichton, and their collaboration developed concurrently. The duo shared several passions, such as engaging in martial arts and possessing a deep enthusiasm for the burgeoning realm of computer technology, along with a strong interest in contemporary art. During a difficult period when Ovitz was grappling with the reality of his forthcoming departure from CAA, he frequently sought guidance on personal matters from Crichton, who was one of the few people he trusted enough to seek advice from.

Other Perspectives

• While Ovitz's career may have shaped his personality, it's possible that his innate characteristics also played a significant role in his career choices and success.
• Expertise in orchestrating agreements could also come with a deep understanding of human emotions, not just the ability to navigate situations.
• It's arguable that personal relationships can benefit from the skills and discipline one acquires in a professional setting, rather than just causing tension and isolation.
• Maintaining a clear boundary between personal and professional life is often recommended, but some might argue that a more integrated approach could lead to a more fulfilling life.
• Emotional control is important, but some would argue that showing vulnerability and emotions can also be beneficial for building trust and rapport with clients.
• The idea that talent representation requires complete impartiality might be challenged by the notion that passion and personal investment can sometimes lead to better advocacy for clients.
• Assuming various roles in clients' lives could be seen as overstepping or could potentially lead to conflicts of interest.
• The tension in balancing work and family life is not unique to Ovitz and can be a common challenge for many professionals; some might argue that finding a work-life balance is possible with the right strategies.
• Guiding children's life choices could be seen as part of a parent's role, and not necessarily negative if done with sensitivity and respect for the child's autonomy.
• The influence of Ovitz's father and grandmother might be one of many factors that shaped his approach to relationships, and it's possible that other experiences also played a significant role.
• Viewing relationships as transactional might be a limited perspective, as relationships can also be based on mutual respect, shared values, and genuine affection.
• The deterioration of the relationship with Ron Meyer could be seen as a natural evolution of a professional relationship rather than a direct result of Ovitz's dedication to his career.
• The decision to distance oneself from potential rivals could be criticized as a potentially paranoid approach that might limit opportunities for collaboration and growth.
• The choice to rarely take time for leisure or social events could be seen as a lack of balance, and some might argue that personal well-being is crucial for sustained professional success.
• The risks associated with Ovitz's method of forming friendships might be mitigated by a more open and trusting approach to personal relationships.
• Delving into art collecting under the influence of friends could be criticized as a form of escapism or a superficial engagement with art, rather than a genuine passion.

Michael Ovitz's departure signified the conclusion of his time at Creative Artists Agency.

This section of the story explores the series of events that led to the deterioration of Ovitz's relationship with Ron Meyer, culminating in his exit from Creative Artists Agency. Having established the agency as the preeminent force in the industry, Ovitz's unyielding aspirations drove him to pursue a broader platform for his abilities. While considering his exit, he committed several errors that diminished his reputation and ultimately led to the dissolution of his tight bond with Meyer.

The perils of success

Michael Ovitz's ambitions were fueled by the impressive achievements of his agency, leading him to expand into areas such as mergers and marketing, demonstrating his quest for wider impact and his belief that the agency was just a stepping stone to more significant endeavors.

Michael Ovitz's confidence in his unmatched ability to solve problems grew while his agency, CAA, climbed to the top of the entertainment industry. He transformed a collection of former William Morris agents into a top-tier talent agency, was instrumental in the acquisition of major studios by Sony and Matsushita, and assisted his clients in achieving levels of success that exceeded their wildest dreams, including Scorsese. Scorsese's portrayal of "The Last Temptation of Christ" alongside Crichton's tale of prehistoric beings in "Jurassic Park."

Michael Ovitz's achievements, instead of giving him contentment, led to a sense of disquiet. In his exploration of the business world, he discovered a layer of corporate executives whose wealth and power exceeded even that of his wealthiest clients. Michael Ovitz regarded his tenure at CAA as a crucial period in his quest to mirror the career trajectory of Lew Wasserman, a figure he had esteemed since his tenure at Universal Studios, a goal that was somewhat realized when he took over MCA from Wasserman.

Michael Ovitz's relentless ambition and inability to withstand the strains of the agency resulted in substantial disputes with prominent individuals, including a well-known singer and actress, ultimately undermining his standing in the entertainment industry.

Michael Ovitz's inflated sense of self-importance, driven by his successes, led to a series of unnecessary errors. Barbra Streisand faced derogatory and unsuitable remarks from Ovitz about her waning appeal while she was expressing her discontent with her compensation and trying to negotiate a more favorable contract for a movie. The quip leaked out and, predictably, poisoned their relationship. The incident also underscored a deeper problem: Ovitz's mounting frustration with the relentless demands of advocating for artistic individuals.

He remained passionate about working with creative individuals, taking pleasure in the company of actors and writers, because at his core, he was an artist. The relentless obligation to cater to the requirements of his clients began to weigh heavily on him.

The controversy surrounding the phrase "foot soldiers" and its subsequent consequences

A misunderstanding with screenwriter Joe Eszterhas, who received a diplomatic exit proposal from Ovitz, highlighted the dangers linked to his tendency to manipulate perceptions and his determination to control all aspects of a situation, demonstrating how his carefully constructed reputation as a powerful dealmaker could swiftly become detrimental.

Joe Eszterhas, a well-known screenwriter who was eager to reconcile with his previous representative, made the decision to leave CAA, an action that would ultimately lead to consequences for Ovitz because of his tendency to dominate situations. Ovitz crafted an exit strategy that preserved the agency's image as a tough place to leave, securing a public declaration from Eszterhas of his commitment to fulfill his contractual obligations before he discreetly withdrew. Ovitz, with a touch of humor, recommended that his representative convey a lighthearted caution. Unfortunately, their agreement to keep matters confidential was soon breached - Eszterhas revealed a strange story about being threatened by people allegedly acting on Ovitz's orders. Word spread about the occurrence.

The incident involving his so-called "foot soldiers" solidified his reputation as a resolute negotiator, unafraid to intimidate any opponents. Michael Ovitz's claims of never employing intimidation tactics against Eszterhas were viewed skeptically, contributing to the decline of his standing in the industry. His meticulous chronicle of deftly maneuvering scenarios for his own advantage and that of his firm ultimately led to unexpected consequences.

A new group of leaders emerged, signifying a period of change within CAA.

The expansion of the agency into a global powerhouse resulted in escalating internal strife, with ambitious agents competing for more autonomy and influence, while Ron Meyer became progressively dissatisfied with his position as Ovitz's second-in-command, underscoring the difficulties of maintaining collective morale in a growing company.

In the 1990s, while CAA secured numerous triumphs, each additional success made it progressively more difficult to preserve the collaborative ethos that was once a defining characteristic of the firm. Ovitz frequently experienced a sense of being inundated with responsibilities, which ranged from securing deals and overseeing discussions to addressing the emotional well-being of the clients he represented. He transitioned from focusing on obtaining job prospects for his clients to negotiating lucrative deals for media corporations.

As the firm grew, managing conflicts among its members became increasingly challenging. Ron Meyer, who was both Michael Ovitz's closest ally and dearest friend, grew more resentful as he was often perceived as being in a lesser position compared to Ovitz. The agency's rising stars, commonly known as the Young Turks, started to express their dissatisfaction with the tightening control Ovitz exerted over the company.

As his ambitions expanded and he believed he had outgrown the limitations of the agency business, Michael Ovitz experienced a deepening sense of solitude and became more vulnerable to critique among his colleagues at the Creative Artists Agency.

Ovitz started to delegate his day-to-day responsibilities at the agency, placing greater trust in his team and seeking guidance from outside consultants. Michael Ovitz's self-assurance in his own talents propelled him to seek out endeavors that were more challenging and impactful, convinced that they were beyond the realm of the agency industry.

Michael Ovitz's gradual withdrawal from direct negotiations and growing alienation from the company he founded provoked animosity not only among his peers but also among his associates in business. Bill Haber's relationship with Ovitz had become more strained, and he often indicated his desire to leave the agency. Michael Ovitz's frequent journeys for business purposes intensified Meyer's annoyance. The Young Turks grew increasingly impatient as Ovitz secured his grip on CAA, playing a pivotal role in the company's financial prosperity.

The MCA/Universal deal that cemented his reputation (and split with Meyer)

Michael Ovitz, despite some initial reservations, was instrumental in advising Matsushita informally, which was a key factor in their acquisition of MCA/Universal, demonstrating his adeptness at handling complex deals and keeping equilibrium among the stakeholders.

MCA was in the market for a new owner following a series of costly mistakes. Matsushita, the Japanese electronics giant, was eager to make its mark in the American entertainment industry and turned to Ovitz as it became apprehensive about falling behind Sony, which had acquired Columbia Pictures. Ovitz, working with Herb Allen as Matsushita's M&A advisor, saw a chance to realize his own dream of running a major studio. Lew Wasserman of MCA dismissed his approach. Michael Ovitz orchestrated the deal with Matsushita while ensuring that both his role and the identity of the buyer were kept secret. Matsushita was set to manage MCA's activities through its representatives, while Wasserman would continue in his role at the helm.

Michael Ovitz showcased his negotiating acumen by masterminding a strategic partnership with MCA. His estrangement from his colleagues grew because they harbored bitterness for not being included in the decision-making process, even though they benefited from the significant financial gains. Apprehension grew within CAA as Michael Ovitz grew more aloof, sparking worries that he could orchestrate the agency's sale, which might compel employees to seek other job prospects.

The deal involving MCA/Universal was not without its personal toll, leading to a major rift with Ron Meyer over the position of Chief Operating Officer at Universal, a conflict that ultimately led to Ovitz's decision to depart from Creative Artists Agency.

After MCA was sold to Matsushita, Edgar Bronfman suggested Ovitz assume the position of CEO at the studio. During his teenage years, while conducting tours at Universal Studios, Michael Ovitz realized the significant financial opportunities the industry could offer and began to nurture his ambition for a leading position within it.

His negotiations, however, hit an impasse involving Seagram. Ovitz was compelled to take action because he could not tolerate the situation, given that the main Seagram shareholders, Edgar Bronfman's father and uncle, would not grant him the autonomy he was used to, as he aimed to acquire a substantial stake in MCA. A crushing setback occurred when, during a confidential meeting, Ron Meyer revealed his intention to accept a role at Universal. Ovitz experienced astonishment. Ovitz's most valued confidant and dear friend took the role he desired without his approval. Michael Ovitz engaged in a prolonged and bitter exchange with Meyer, convincing him to turn down the offer and repair their strained relationship. Ovitz's actions led to Meyer feeling betrayed, which resulted in his refusal. The schism had enduring consequences; their friendship, as well as Ovitz's tenure at CAA, remained irreparable.

Practical Tips

• Reflect on your career trajectory by journaling about key turning points to understand how past decisions have shaped your path. Write down significant career changes, why you made them, and their outcomes. This can help you identify patterns in your decision-making and guide future choices.
• Practice negotiation skills by role-playing with a friend or family member. Set up scenarios where you need to negotiate terms, such as selling a car or setting a deadline for a project. This will help you develop the ability to negotiate effectively and understand the dynamics of tough negotiations.
• Create a feedback circle with trusted peers to regularly discuss and critique each other's work or decisions. Meet monthly to present challenges and receive constructive criticism. This can help you become more open to critique and reduce the sense of isolation in your professional life.

Ovitz’s Post-CAA Reinvention and Transition to Tech

This part explores the difficulties Ovitz faced when he moved into an environment where the conditions he was once familiar with were not as easily accepted after he left Creative Artists Agency. The downfall of his management and production company set the stage for a new chapter of heightened achievement in the tech hub commonly referred to as Silicon Valley.

His attempts to assume control of Disney did not succeed.

Michael Eisner's offer to share the CEO position led to a troubling period for Ovitz, whose influence waned rapidly over fourteen months due to Eisner's failure to support him, underscoring his difficulty in succeeding in a setting he couldn't control.

After concluding his time with Creative Artists Agency, Ovitz shifted his focus to Disney. Michael Eisner, the head of Disney, had been pursuing a partnership with him for some time, and with ABC's recent merger into the company, required an experienced executive to oversee everyday operations. Ovitz believed he would share the CEO role and its duties with Eisner, whom he had long considered a friend. His tenure at Disney, however, concluded in an unforeseen manner.

From the outset, Eisner was opposed to the suggestions put forth by Ovitz and was actively engaged in diminishing his sway among the board members and executives at Disney. During a crucial gathering, Eisner publicly humiliated Ovitz in front of key board members while he was making a case for Disney to think about acquiring a stake in Yahoo. Ovitz gradually understood that Eisner was unwilling to share authority or accolades, impeding his ambitions to replicate the successes he had achieved with his previous company, Creative Artists Agency.

Michael Ovitz underestimated Eisner's motives and failed to account for the deep-seated corporate culture at Disney, demonstrating that his ability to broker deals was not as effective outside the realm where he could leverage his agency's clout to dictate terms.

During his tenure at Disney, Michael Ovitz gained a wealth of knowledge. Michael Ovitz built a formidable foundation of power within CAA, bolstering his capacity for successful deal-making. Ovitz came to understand that his ability to set conditions was dependent on his sway over top industry talent; yet, within Disney, the scales of power tipped in favor of corporate executives who held more sway. Despite his attempts at fostering agreement and nurturing connections, Ovitz faced a systemic reluctance to accept his suggestions.

Ovitz’s frustration mounted as his projects foundered. Another setback occurred – a lawsuit from shareholders alleging his failure to perform competently and violation of contractual obligations. While the suit would eventually be dismissed, it further damaged his reputation.

The disintegration of the company known as Artists Management Group.

Michael Ovitz's attempt to reshape his professional path through the creation of a new management and production company was thwarted by technological hurdles and competition, underscoring his influence as past allies and adversaries united against him.

After contemplating his future endeavors, Ovitz founded a new enterprise with the accomplished duo, Rick and Julie Yorn, focusing on artist representation and the creation of creative content. He aimed to leverage the burgeoning potential of the internet and mobile technology, foreseeing an entertainment landscape transformed by the ability for audiences to enjoy brief video content on their personal devices.

Unfortunately, AMG failed to gain traction. The firm focused too soon on mobile technology, considering the era's restricted smartphone capabilities and data transfer speeds, which resulted in CAA dissuading its clients from selecting Ovitz as their manager by stating they would refuse to represent talent who chose his management services. AMG faced a period of hardship, during which Ovitz suffered considerable setbacks, including the loss of his close associate Mike Menchel, who left for CAA and took Robin Williams, a client and cherished friend of Ovitz, with him. Ovitz felt a profound sense of paternal affection for a long-time client whose sudden decision to leave took a deep emotional toll on him.

He relocated his headquarters to the central region of Silicon Valley.

The atmosphere captivated Michael Ovitz because it nurtured new entrepreneurs and valued skill and diligence, leading him to pivot his career towards technology consulting, a field that allowed him to continue his passion for creating businesses and building relationships with extraordinary people.

After the acrimonious split from AMG, Ovitz shifted his focus to the burgeoning tech industry at the heart of Silicon Valley. He found the Valley's inviting environment for innovators and individuals with revolutionary concepts reminiscent of the Hollywood vibe from his initial forays into the industry. He developed a profound fascination with software and the internet over the course of the 1990s, engaging in regular dialogue with prominent figures such as Bill Gates and Mark Andreessen, and he effectively convinced Intel to establish a media laboratory within the confines of CAA. Despite being outmaneuvered by the established titans of traditional media, he was ready to move forward.

Silicon Valley entrepreneurs were surprisingly eager to tap into his extensive expertise in the entertainment sector. After years of nurturing his enterprise, he possessed a deep comprehension of the complexities involved in steering through an increasingly difficult terrain, all the while upholding the foundational values that defined his company. He recognized the importance of assembling a competent team, fostering important relationships with investors, creating strong brands, and planning for long-term achievement in any startup, whether it's in the realm of show business or the technology sector.

Michael Ovitz's mentorship of Marc Andreessen and Ben Horowitz, which culminated in the establishment of Andreessen Horowitz, exemplifies his adaptability in shifting to a new sector and applying the crucial skills that were instrumental in shaping the Creative Artists Agency.

Michael Ovitz played a pivotal role in the development of Silicon Valley by offering guidance to Marc Andreessen and Ben Horowitz, who established the prominent venture capital firm Andreessen Horowitz. Michael Ovitz orchestrated a meeting alongside Marc and his trusted associate, Herb Allen III, which was designed to strengthen their respective businesses and ultimately led to the development of a solid friendship between them. Upon becoming a member of the Andreessen Horowitz board, he shared with the partners a multitude of tactics that originated from his time at a leading talent and sports agency.

Michael Ovitz's accomplishments at Palantir, along with his financial backing of Blend and numerous other prominent startups in healthcare, finance, and artificial intelligence, highlight his successful foray into the Silicon Valley landscape.

He thrived in an environment that valued merit, reigniting his entrepreneurial zeal. He joined the board of directors at Palantir, a renowned Silicon Valley firm celebrated for its data analysis proficiency. He also played a pioneering role as an investor and advisor for Blend, a mortgage firm that enables clients to secure loans using their mobile devices. He attained significant accomplishments by offering professional advice to companies in the healthcare industry, drawing on his deep-seated experience and strong connections with the University of California, Los Angeles Medical Center.

Throughout his professional journey, Ovitz has engaged with numerous emerging enterprises. His accomplishments not only reflect his profound grasp of business transactions but equally his steadfast expertise in cultivating relationships. Once again, in his seventies, Ovitz has found himself an outsider seeking to break into an established field. He observes that the prevailing atmosphere mirrors his own values, encapsulating the diligent and achievement-oriented spirit that dominated his early career years within the realm of show business.

Other Perspectives

• Ovitz's failure at Disney could be seen as a result of his own inability to adapt to a different corporate environment, rather than solely Eisner's lack of support.
• The corporate culture at Disney may have been resistant to Ovitz's style of deal-making, but it could also be argued that successful adaptation requires flexibility and understanding of the existing culture.
• The downfall of Artists Management Group might not only be attributed to external factors like technology and competition but also to possible strategic missteps by Ovitz and his team.
• While Ovitz did relocate to Silicon Valley and found a new niche, it could be argued that his success there was not solely due to the environment but also due to his previous experience and connections.
• The mentorship of Marc Andreessen and Ben Horowitz and the success of Andreessen Horowitz could be seen as a collaborative achievement rather than a direct result of Ovitz's influence.
• Ovitz's role in the success of Palantir, Blend, and other startups could be overstated; these companies' successes are likely the result of the collective efforts of many individuals and broader market forces.