Barry Diller's New Role - Impact on Vivendi Universal

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Barry Diller's potential role at Vivendi Universal raises intriguing questions about leadership dynamics and corporate strategy amidst industry shifts.

The events of the past week unfolded with striking headlines, yet they left many questions lingering. For instance, the potential new role for Barry Diller at Vivendi Universal was a major talking point. Jean-Marie Messier, known for his bold moves, achieved his vision of vertical integration by reclaiming Universal’s TV assets. This move aimed to boost the company's stock by bringing in Diller, a Wall Street favorite, to the top management.

However, this development raised several underlying issues. The studio team, though currently efficient, now faces the prospect of restructuring under a new leader. Ron Meyer's leadership style emphasized distributed responsibility and accountability, while Diller is known for his sharp, autocratic approach. Additionally, Diller's preference for autonomy brings into question how he will fit into the more corporate management style favored by the French. The roles of other key figures like Pierre Lescure, Michael Jackson, and Scott Greenstein also remain uncertain. By the end of the week, it became clear that a deal between Diller and Messier would likely lead to significant management changes at the studio.

Another noteworthy event was the quick settlement between the Directors Guild and management. The guild agreed to a new three-year deal well before the expiration of the current one, demonstrating their understanding of the need for action. This move highlighted the contrast with the prolonged and disruptive negotiations of the Writers and Actors Guilds, which had caused significant production delays and job losses in Hollywood and New York.

Bill Mechanic also made headlines with his lucrative production deal at Disney, set to produce up to 20 self-financed films over five years. This agreement marks a significant shift for Michael Eisner, who is typically very hands-on. Eisner's decision to take a step back and allow Mechanic to greenlight films without his input is seen as a strategic move to bolster Disney's lean production schedule. Disney will only cover prints, advertising, and a small portion of the production budget, minimizing risk while increasing output.

The recent auction of "Terminator 3" further underscored the need for additional content. Despite being a 17-year-old franchise with an aging star, the project attracted bids from most major studios due to its potential as a tentpole movie with a capped price of $50 million. Warner Bros., already laden with franchises like "Harry Potter," "The Lord of the Rings," and "The Matrix," emerged as the winner. Their strong hold on megaplexes makes it feasible to slot "Terminator 3" into the 2003 release schedule. This move has sparked speculation about AOL Time Warner's ambitions, raising the question: does the company aim to own the world?

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