Ted Turner, Steve Case, and Carl Icahn met in the latter's mansion in New York's Upper East Side.
Even though it was just a standalone villa with a few dozen rooms, its land area couldn't compete with Ted Turner's estate, and many Hollywood stars' Beverly Hills hilltop homes were even larger.
But this wasn't about size.
Not everyone could buy a house here.
When the residents are industrial titans or financial moguls, people who play with banks, energy, military, and pharmaceuticals, Hollywood celebrities wanting to buy property here? Sorry, those folks aren't even qualified to be doormen.
To put it crudely, DiCaprio may be "super A-list," but in the Upper East Side, he's only worthy of a tiny apartment on the outskirts.
You can't enter the core if you don't control the means of production.
Of course, such clustering is just the most discreet symbol of identity.
The visible signal is the interior design.
Carl Icahn's home was like a mini-museum. Along the corridors hung Picassos, Monets, and Van Goghs. Sculptures casually placed by the walls were all major works. If you had to describe it…
If you lacked artistic cultivation, everything around you would make you look like a hillbilly.
For old money, "art appreciation" is never about the art itself. It's about the person.
Art needs no studying. When your life is filled with so-called priceless masterpieces, you naturally understand each artist's style. As Puyi once said: play with it long enough and you'll understand.
So if you talk about an artwork by quoting references? Sorry, you're not one of them.
Real insiders start with: "We also have one of his pieces at home."
Power always looks down from above.
It never meets anything as an equal.
Guided by a servant, Ted Turner and Steve Case entered Carl Icahn's reception room.
The opulence along the way made them sigh. They were rich, yes, but not Icahn-rich. Most of their wealth was in stocks, essentially nice-looking bubbles until cashed out.
Their appearance made Carl Icahn rise from the sofa. He welcomed them with smiles and handshakes.
"Oh Ted, oh Steve, I'm delighted to see you today. Honestly, what made me happiest was receiving your invitation. Believe it or not, I was excited when I learned you wanted to meet."
"Oh, really?"
Ted Turner smiled brightly. "Carl, it's an honor to be valued by you."
"Carl, your acceptance also thrilled me," Steve Case said, shaking his hand. "You've always been my idol. Seriously."
Icahn burst into loud laughter.
He gestured for them to sit, asked what they wanted to drink, and upon hearing no restrictions, instructed the butler to bring out a few bottles.
They made small talk until the wines were opened. After tasting them, all three shifted into business mode. Their time was valuable, and their purpose clear.
Ted Turner spoke first:
"Carl, I believe you know why we came. So… let's talk about your plan? Then we can see whether we can unite."
"No problem."
Icahn nodded with a smile.
"My goal is simple. I'll acquire a certain number of Time Warner shares, then seek board seats, and then split Time Warner into five companies: AOL for internet, Time Warner Cable for broadcasting, Time Publishing for print, Warner Bros. for film and TV, and Warner Music for music."
"I wonder… are you willing to support me?"
He was called the Wolf of Wall Street not because of wealth but because of his ruthlessness. When he targeted a company, he carved it up completely.
And wolves are pack animals.
He always had allies.
His success wasn't from infinite wealth or transcendent financial skill. He played a game of human nature.
The companies he targeted always had problems.
Minority shareholders were already unhappy with stock price, operations, direction. Icahn simply appeared as the champion of those shareholders and gained their support. Only with that backing could he plunder.
So he needed shareholder unity every time. That's why he spoke so frankly with Ted Turner and Steve Case.
And what they heard was a string of numbers.
Time Warner's market cap was about 100 billion.
If split into five companies, based on precedent, their combined worth could rise to about 150 billion.
Meaning: if Icahn succeeded, he could easily pocket up to 1.5 billion.
Right.
Even without him stating how many shares he'd buy, the math was trivial.
Due to SEC disclosure rules, he'd never buy past the reporting threshold. So at most he'd quietly acquire around 3 percent.
3 percent of 100 billion is 3 billion.
If the split pushed value to 150 billion, that became 4.5 billion.
Profit: 1.5 billion.
Basic finance stuff.
Both men calculated this in seconds.
Then they fell silent.
Not because Icahn's profit bothered them, but because his plan didn't match their desires.
They only wanted AOL split off.
TV, film, publishing, music—they wanted all those kept together.
So…
"Okay, that's a very grand plan."
The two exchanged looks.
Steve Case asked with a smile, "Before we go further, Carl, can I ask you a question?"
"Of course. Anyone who can sit together is a friend. Ask whatever you want."
"Your generosity impresses me," Case said, then added, "Carl, when did you first target Warner?"
"Was it a sudden whim?"
"Of course not." Icahn raised a brow and crossed his leg. "I targeted them long ago. If I must give a time… then during your merger."
"Steve, no offense, but AOL wasn't qualified to acquire Time Warner."
"Your financials back then… were ugly."
"You had only about a billion or two in profit, yet a valuation of over a hundred billion. Come on. You knew the bubble was enormous."
"In my view, the AOL-Time Warner merger was doomed."
"So I set my sights on you then. I knew your shareholders would get angry."
"And as expected."
His bluntness made Steve Case grimace. Ted Turner smiled and picked up the questioning.
"Then Carl, why move now?"
"Please, Ted, that question is too disingenuous." Icahn leaned back, smiling wider. "We all respect the Rockefellers, don't we?"
Ted Turner's smile grew. Yes, indeed.
But the third-generation head of the Rockefeller family had died.
Laurance Rockefeller passed away on July 11, 2004, at age 94.
His death marked the end of the third generation and meant Richard Parsons had lost his backing.
No, this didn't mean they could attack Parsons. No one would be insane enough to provoke the Rockefellers.
It meant Parsons had no attention left for Time Warner. He'd be busy helping his "young master" seize valuable assets.
Like Citigroup, a Rockefeller stronghold.
Or Venrock, their Silicon Valley investment arm, which had backed Intel, Apple, 3Com—basically every famous tech firm.
And since real assets were now up for grabs, Parsons had no energy for Time Warner, which wasn't even Rockefeller property.
With Rockefeller leadership unstable, Ted Turner and Steve Case finally dared to dream of controlling Time Warner. If Laurance were alive, the thought would've been suicidal.
Icahn was the same. He was rich, sure, but who could outbid a dynasty?
Since everything was laid bare…
"Okay, Carl, we may become allies," Turner said. "But your plan is too extreme. We can't accept it."
"Yes," Case nodded. "We can only accept the structure from five years ago."
"The structure from five years ago?" Icahn tilted his head. "So Steve, do you want AOL as it was five years ago, or Time Warner as it was five years ago?"
"You don't plan on becoming AOL's chairman again, right?"
Case fell silent, unable to respond.
Icahn chuckled, then continued:
"If you only want two companies, then you need at least twenty billion in stock buybacks to push the price up."
"I'm sure you've calculated my target return. That's my bottom line."
His concession made them exhale in relief.
Buybacks would hurt cash flow during a takeover, but compared to a five-way split, this was acceptable.
Power always costs something.
Still, they didn't commit immediately. They smiled politely and said they needed to discuss things.
Then they presented their own request:
"Carl, we want full control of Time Warner, whether you're involved or not."
Icahn understood.
Smiling, he swirled the wine in his glass.
"There's a guy at Marvel named Kevin Feige, a Richard Donner protégé. He has a grand idea: to connect all Marvel characters into one huge film series."
"Because I fought too hard with Ronald Perelman back then, we both lost our board seats. So I'm not sure how far Feige has gotten, but I know they're buying back rights."
"Apparently, they want Iron Man most."
"So, if you accept one of my two proposals, I can arrange a dinner. If Isabella truly loves Marvel, she probably won't reject Feige's vision."
"And I'll be honest: I'm not interested in Marvel. Neither is Ronald Perelman. So if we ally…"
"I can't deal with Universal, so Hulk is your problem. Sony won't sell Spider-Man. Fox… I'm not planning to take apart Fox yet. But I can pressure Lionsgate and make them hand over all Marvel rights before Feige does."
"Then…"
"If we're allies, it's all yours."
"Isabella would only join the project if she stands with you."
He lifted his glass and downed it.
Ted Turner and Steve Case laughed.
"Carl, your intel is unbelievable!"
With needs exchanged, the secret meeting ended.
Perhaps due to the coming holidays, Icahn invited them to stay for a meal. They accepted.
At 2 p.m. they finally left.
As their car disappeared, Icahn returned to his study, took out a phone, and made a call.
After two rings, a warm greeting answered:
"Hi Carl, good afternoon."
"Hi Michael, good afternoon," Icahn said. "Ted Turner and Steve Case just left. As you predicted, they intend to make a move."
"Thanks for the info. Dinner sometime."
"No need. If you want to thank me, donate to my foundation."
"Carl, you're so blunt!"
Michael Eisner, enjoying winter at his estate in Washington, laughed.
"No problem. After I get my compensation from Disney, I'll subscribe to your fund."
Yes—
Icahn had leaked his "attack plan" on purpose for Eisner.
He hadn't even built his position yet. If anything went wrong because of premature leaks, he'd ruin the whole scheme.
But he released the info because Eisner needed it.
They'd known each other for years.
And to Eisner, Icahn was still "new money," someone worth pleasing.
Eisner's motive was simple: he could lose, but he refused to let the winner feel comfortable.
If Turner and Case kept fighting Barry Meyer, Eisner could resign happily.
December 17, 2004, Friday.
Eisner announced he would leave Disney officially in March.
The next day, his ally George Mitchell also submitted his resignation.
The era of Michael Eisner at Disney had ended.
Meanwhile…
"I personally think Robert Iger can be Disney's next leader."
On December 22, 2004, George Mitchell told the media:
"Robert Iger is an exceptional talent. Under him, Disney's TV and live-action film businesses have grown significantly."
"His introduction of 'Who Wants to Be a Millionaire?' and 'The Voice' made ABC the leader of the big three. And 'Pirates of the Caribbean' filled the gap of Disney lacking a live-action franchise."
"I believe if he becomes chairman and CEO, Disney's future will be even brighter than the kingdom Michael Eisner built."
"Fxxk—Michael Eisner, you bastard—"
The sudden endorsement made Robert Iger furious.
He wasn't stupid. He knew Eisner was provoking conflict between him and Roy Disney.
Without this public shove, he could've negotiated with Roy peacefully. If Roy wanted the chairman title, he could have accepted that.
Because Iger was still young.
He was born in '51, only 53.
Roy Disney, born in '30, was already 74.
When there was a 21-year age gap between them, even if Roy Disney managed to take back control of Disney, how long could he actually stay in that position? No matter how much he loved power, he was going to have to step down eventually.
And in that situation…
To be brutally honest:
From certain angles, Roy Disney becoming chairman was actually good for him.
Because with an esteemed old man who would inevitably retire standing in front as a shield, he could calmly replace every key position in the company with his own people. Then once Roy Disney stepped down…
Who in all of Disney would be able to tell him "no"?
At that point, the power he would wield would be even more terrifying than Michael Eisner's.
What's that?
Someone suggests Roy Disney might push his own child into Disney?
Impossible.
The Disney family's situation at the time was the same as the Rothschilds: no capable heirs.
Or to put it differently: if there were anyone competent, Roy Disney would've pushed them forward already.
Which meant that as long as outsiders believed there was no conflict between him, Robert Iger, and Roy Disney, his dealings with all factions inside Disney would go smoothly.
But once conflict appeared…
Forget everything else.
At the very least, the people loyal to the Disney family would start guarding against him.
Once that happened, he'd lose the ability to control them.
Anyone among them with even a little ambition would use their connection to Roy Disney to fight their way upward.
"Oh! Sxxt! Oh! Sxxt!! Oh! Sxxt!!!"
After confirming that George Mitchell really had told the media he recommended him, Robert Iger felt like his hair was about to catch fire.
From sheer anger.
He paced back and forth in his office, the sharp "tap tap tap" echoing like dripping water in a dark cave, making the secretary standing nearby too scared to speak.
No one knew how long it lasted. It felt like a century. Then he finally stopped.
"No. Plans have changed."
"We can't try to get the rights from Isabella anymore."
"We have to rethink everything. We need to find a way to break apart Disney's headquarters."