The King of Content
eBook - ePub

The King of Content

Sumner Redstone’s Battle for Viacom, CBS, and Everlasting Control of His Media Empire

  1. 368 pages
  2. English
  3. ePUB (mobile friendly)
  4. Available on iOS & Android
eBook - ePub

The King of Content

Sumner Redstone’s Battle for Viacom, CBS, and Everlasting Control of His Media Empire

About this book

The remarkable story of Sumner Redstone, his family legacy, and the battles for all he controlled.

Sumner Murray Redstone (1923–2020), who lived by the credo "content is king," leveraged his father’s chain of drive-in movie theaters into one of the world’s greatest media empires through a series of audacious takeovers designed to ensure his permanent control. Over the course of this meteoric rise, he made his share of enemies and feuded with nearly every member of his family.

In The King of Content, Keach Hagey deconstructs Redstone’s rise from Boston’s West End through Harvard Law School to the highest echelons of American business. The ninety-seven-year-old mogul’s life became a tabloid soap opera, the center of acrimonious legal battles throughout his vast holdings, which included Paramount Pictures and two of the largest public media companies, Viacom and CBS. At the heart of these lawsuits was Redstone’s tumultuous love life and complicated relationship with his children. Redstone’s daughter, Shari, has emerged as his de facto successor, but only after she ousted his closest confidant in a fierce power struggle.

Yet Redstone’s assets face an existential threat that goes beyond his family, disgruntled ex-girlfriends, or even the management of his companies: the changing nature of media consumption. As more and more people cut their cable cords, CBS, with its focus on sports and broadcast TV, has held steady, while Viacom, with its once-great cable channels like MTV and Nickelodeon, has suffered a precipitous fall. As their rivals merge, the question is whether Shari’s push to undo her father’s last big strategic maneuver and recombine CBS and Viacom will be enough to shore up their future.

A biography and corporate whodunit filled with surprising details, The King of Content investigates Redstone’s impact on business and popular culture, as well as the family feuds, corporate battles, and questionable alliances that go back decades—all laid bare in this authoritative book.


How did one man build a global media empire from scratch, and what will it take for his legacy to survive the battles from both inside and outside the boardroom?


  • A Media Empire’s Origin Story: Follow Redstone’s audacious journey from his father’s drive-in movie theaters to the audacious takeovers of Hollywood giants like Paramount Pictures, Viacom, and CBS.
  • Explosive Family Feuds: Delve into the litigious and deeply personal conflicts that pitted Sumner against nearly every member of his family, including the dramatic rise of his daughter, Shari Redstone.
  • High-Stakes Boardroom Drama: Go behind the scenes of the acrimonious lawsuits and fierce power struggles that defined his reign and shaped the modern media landscape.
  • An Industry in Turmoil: Uncover the existential threat facing Redstone’s assets as cord-cutting and new technology challenge the very foundation of the "content is king" philosophy.

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Information

Year
2018
eBook ISBN
9780062654113

Chapter 1
Rain at Sunrise

August 10, 1938: Darkness descended on what would prove to be an inauspicious beginning for a media empire.
It was opening night of the first drive-in theater in New York State. Rain drummed the domed metal roofs of the six hundred cars creeping through the mud of the abandoned airport along the Sunrise Highway in Valley Stream, Long Island, threatening to blur the picture and drown out the dialogue of the feature film the intrepid moviegoers had come to see: Start Cheering, an antic Columbia Pictures musical comedy starring Walter Connolly and Jimmy Durante about a film star who leaves Hollywood for college. Aside from some jelly-legged tap dancing by Hal Le Roy, a few cameos by the Three Stooges, and the spectacle of vaudevillian Chaz Chase eating a book of lit matches, the film didn’t have a lot to recommend it—not to mention that it had already been showing at indoor theaters for six months.
But as would often be the case for the drive-in industry for the next half century, the capacity crowd had come to the Sunrise Drive-In as much for the experience as for the movie itself. Coming in off the lonely stretch of highway along the railroad tracks just beyond the New York City limits, they had driven past the glowing marquee beckoning drivers to “Sit in Your Car” and “See and Hear the Movies” for thirty-five cents, past the scrubby evergreens planted to keep outsiders from stealing a glimpse of the screen, past the five-story steel-and-concrete screen splashed with turquoise and terra-cotta. At the entrance, fresh-faced young men in pale jackets, black bow ties, and soda jerk hats guided the cars to their place in the concentric semicircular ramps tilted to ensure that no one’s Chevy, no matter how big or boxy, blocked anyone else’s view. These same young attendants went from car to car, delivering refreshments from enormous wooden boxes slung over their shoulders. For weeks leading up to the premiere, the theater’s developers, the New York architectural and building firm led by Irwin Chanin, had been in the news, touting their latest creation as if it were the eighth wonder of the world.1 The Chanin Organization was already well known for building architectural marvels in Midtown Manhattan, such as the sumptuous Roxy Theatre, one of the largest movie houses in the world when it was completed in 1927, and the Art Deco landmark Chanin Building, the tallest building in Manhattan when it was finished in 1928. So when they turned their public relations machine to promoting the twelve-acre drive-in theater they had carved out of their vast Green Acres suburban housing development, it wasn’t hard for them to get most of the press to print that their sixty-by-forty-eight-foot screen was “said to be the largest ever made” and “on the basis of ground area it may be considered the ‘largest’ theater in the New York area.”2 “World’s Biggest Movie Screen for Outdoor Theater,” blared a headline in Popular Science, beneath a photograph of a man standing, for scale, like a tiny speck in front of an Art Deco ziggurat.3
But as the premiere approached, the task of drumming up interest in the drive-in fell to a far less known entity: Max Rothstein, a slight, soft-spoken Bostonian with piercing blue eyes, a long face, and a thick sweep of hair that made him look not unlike a movie star himself. Rothstein was the public face of Sunrise Auto Theatre, Inc., a hastily assembled, Boston-based corporation founded earlier that summer, just as the Long Island zoning officials had decided to approve the creation of a drive-in. On July 3, Chanin announced that he had leased the $50,000 theater “for the long term,” according to the New York Times, to Sunrise, which would operate it. It was quite a coup for a thirty-six-year-old father of two who had neither the money to lease a drive-in nor any experience running one. Nowhere in all the press reports was there any word about how Rothstein came into that money. Not until years later would it emerge that he had a silent partner: Harry “Doc” Sagansky, a Boston dentist-turned-bookie, who at that point was five years into his career as one of the most famous illegal gambling figures of the twentieth century.
“They were partners together for forty-four years,” said Sagansky’s son Robert Sage. “My father helped put money into the theaters, starting with the Sunrise.”
But for obvious reasons, Sagansky remained in the background, and so it was left to Rothstein to be the barker. While Chanin, a developer to the core, went for superlatives and grandeur, Rothstein emphasized drive-ins’ practicality and accessibility. Drive-ins mainly served the “family trade,” Rothstein told the Brooklyn Daily Eagle, with a high concentration of what the paper called “cripples and aged people who are not able to walk into ordinary theaters but who can be brought to the automobile theaters.”4 The Boston-area theaters were particularly popular, Rothstein noted, because they took cars off the street and reduced traffic congestion—a somewhat peculiar pitch for a drive-in located along one of the earliest tentacles of Long Island’s suburban sprawl. Freedom to smoke and talk through the movie without annoying fellow audience members was, he said, another key advantage.
If it seemed like Rothstein was doing everything humanly possible to erase any mental images of necking teens before they even had a chance to form, that’s because he was. He was well acquainted with the risks of doing otherwise. He pitched himself to the New York papers as an expert in drive-ins, having “been interested” in the operation of those that had popped up in suburban Boston in the last couple of years. But what he did not mention was that, less than a year before, suburban Boston had also been the site of one of the first and most ferocious community outcries over a proposed drive-in that the fledgling industry had seen. The previous October, 250 people had packed into the town hall building of Dedham, on the southwest edge of Boston, to protest a proposed drive-in at the intersection of the newly constructed Route 1 and Route 128. The chairman of the board of selectmen of Westwood, an adjoining community, said the proposed theater “would be a menace and a moral danger to the community.”5 The plans were nixed. (More than a decade later, Rothstein and Sagansky would open up a drive-in on the site, which has since become the luxurious Cinema De Lux multiplex at Legacy Place that serves as a centerpiece of Rothstein’s descendants’ theater chain.)
The ad in the local papers for opening night summed up the pitch: “Sunrise Drive-In Theatre. The latest thing on Long Island. New, open-air way of seeing the movies. Sit in your own car. No parking problems, no waiting in line, dress as you please, smoke, chat, be comfortable. New show every Sunday, Wednesday & Saturday. 35 cents per person—your auto free. 8:30 and 10:30 nightly.”
And then the all-important words: “Rain or shine.”6
* * *
By 1938, drive-ins were not quite as novel as Rothstein’s ad copy would suggest. The first one was opened just over the Camden, New Jersey, town line on June 6, 1933, by Richard Milton Hollingshead Jr. shortly after he received a patent for his design of terraced ramps that enabled cars to come and go without distracting their fellow moviegoers.
Hollingshead, the son of an auto products dealer, originally concocted his outdoor movie theater as a mere feature of a more grandiose plan for a Hawaiian fantasy-themed gas station, complete with palm tree–shaped gas pumps, but for perhaps obvious reasons, only the outdoor movie innovation survived. At least a dozen drive-ins popped up over the next five years, but Hollingshead had little luck getting them to pay him license fees for his patent without suing them. Among those tangled up in early litigation were two in the Greater Boston area that had likely inspired Rothstein: the Weymouth Drive-In Theatre in Weymouth, Massachusetts, opened in 1936, and E. M. Loew’s Open Air Theatre in Lynn, Massachusetts, opened in 1937. By the spring of 1938, the trade publication BoxOffice wrote of the New England drive-in industry: “There are already more law suits on drive-in theatres in this territory than there are drive-in localities.”7
Many years later, Rothstein’s son Sumner would claim that the Sunrise was “maybe” the third drive-in in the country. According to newspapers of the day and subsequent studies, it was probably closer to the fifteenth, with drive-ins in New Jersey, Pennsylvania, Texas, Massachusetts, California, and Ohio predating it.
But what it lacked in novelty, it made up in size and style.
* * *
The Sunrise was the first truly grand suburban drive-in in the country, built for five hundred cars but expanded to accommodate two thousand, with a playground for children and even a Ferris wheel.8
It was part of an ambitious suburban vision by Irwin Chanin and his brother Henry, who in 1936 purchased a 335-acre tract of empty land just beyond the New York City limits and carved it up into a unique “residential park” community of eighteen hundred Cape Cods, colonials, and English manor houses, mostly on cul-de-sacs connected by footpaths, called Green Acres. Both the development and the drive-in were harbingers of a new mode of American life as the country emerged from the Great Depression, one built around middle-class families with disposable income, roomy cars, and easy access to endless miles of freshly built highways. Drive-in theaters would expand modestly to about one hundred across the country by the start of World War II and then stop dead, halted by tire and gas rationing. But as soon as the war was over, they took off, exploding to more than two thousand by the 1950s. Foreseeing this boom, Rothstein told the papers that his company was named “Sunrise Auto Theatres,” suggesting there would soon be more of them, even though it was actually named Sunrise Auto Theatre, Inc., in corporate filings and land records.9 And though it took a decade for Rothstein and Sagansky to open their second theater, eventually their ambitions were realized. Despite what a New York Times reporter described as a “torrential downpour” and a still-primitive sound technology, the Sunrise’s opening night had been a success.10 The bad weather at the opening had proven that, as the Wave newspaper put it, “even with the windows of an automobile closed the roof of the car acts as a sounding board to bring inside the sound from the battery of directional amplifiers located atop the 80-foot-high screen. Under all conditions the quality of sight and sound are equal to those in the conventional indoor theatre.”11 The Sunrise Auto Theatre became the cornerstone of a chain of drive-in theaters that would come to dominate the Northeast and, by the end of the 1950s, remake itself with an even more forward-looking name: National Amusements Inc.
Under the leadership of Rothstein’s son Sumner, who worked at the Sunrise selling popcorn and soda during his teenage years, National Amusements would go on to take control of Viacom Inc. and CBS Corp. and build one of the world’s largest media holdings.12 Along the way, it has shaped culture in immeasurable ways, defining global pop culture for generations and inventing the reality television format at MTV, giving platform to the leading satirical voices of the last two decades with South Park and The Daily Show, pioneering the very idea of a dedicated children’s channel with Nickelodeon, reviving the once-beleaguered CBS to a prime-time powerhouse with hits like Survivor and The Big Bang Theory, and showing Hollywood that critical acclaim and commercial success need not be mutually exclusive with hit movies like Titanic, Forrest Gump, and Braveheart.
It would turn Sumner Redstone into one of the richest men in the world, with a Beverly Hills mansion, girlfriends half his age, and a Rolodex of Hollywood royalty for dining companions. And ultimately, control of it would pass into the hands of Sumner’s daughter, Shari, and her children amid one of the greatest boardroom battles that corporate America has ever seen. But before any of that could happen, Max Rothstein would have to become Mickey Redstone.
* * *
Max Rohtstein was born on April 11, 1902, in Boston, the fifth of ten children raised by Morris and Rebecca Rohtstein, who were part of the great wave of Jewish immigrants fleeing rising anti-Semitism and desperate poverty in East...

Table of contents

  1. Dedication
  2. Contents
  3. Frontispiece
  4. Prologue: “I Don’t Want to Sell Paramount”
  5. Chapter 1: Rain at Sunrise
  6. Chapter 2: The Conga Belt
  7. Chapter 3: “The Whole Situation”
  8. Chapter 4: The Next Generation
  9. Chapter 5: National Amusements
  10. Chapter 6: “From One Catastrophe to Another”
  11. Chapter 7: “Artful Dealings”
  12. Chapter 8: Forged in Fire
  13. Chapter 9: Defeating the Viacomese
  14. Chapter 10: Scaling Paramount
  15. Chapter 11: Killer Diller
  16. Chapter 12: Immortality
  17. Chapter 13: “Remember, I’m in Control!”
  18. Chapter 14: The Hotshot
  19. Chapter 15: “Sumner in a Skirt”
  20. Chapter 16: “This Is Crazy!”
  21. Chapter 17: “Good Governance”
  22. Chapter 18: Strange World
  23. Chapter 19: “Our Family”
  24. Chapter 20: “Sharp as a Tack”
  25. Chapter 21: Sex and Steak
  26. Chapter 22: Pandemonium
  27. Chapter 23: “Cleaning House”
  28. Epilogue: The First Female Media Mogul
  29. Author’s Note
  30. Acknowledgments
  31. Bibliography
  32. Notes
  33. Index
  34. About the Author
  35. Copyright
  36. About the Publisher

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