The Wall Street Journal article was not long.
Less than a thousand words in total.
But it contained two key pieces of information.
First:
According to people familiar with the matter, the Wall Street financier known as the "Wolf King," Carl Icahn, had recently reached a formal agreement with Blockbuster. He would abandon his bid for Blockbuster and withdraw from the company.
The reason was simple: Blockbuster had agreed to make changes he demanded.
First, Blockbuster decided that it would launch its own internet-based rental platform later this year, officially going to war with the rising newcomer in the rental industry, Netflix.
Second, Blockbuster's shareholders' meeting passed a resolution focused on cutting costs and improving efficiency.
The shareholders unanimously demanded that Blockbuster's management slash their personal compensation. Last year alone, Blockbuster's chairman and CEO John Antioco's real compensation reached as high as 51.6 million dollars.
The total compensation of senior executives even exceeded 500 million dollars.
Yes. Same old story. Professional managers are never clean.
If shareholders seriously decided to investigate, every single one of them would end up behind bars.
With these two changes in place, Blockbuster's net profit this year was expected to increase by at least ten percentage points compared to last year.
As soon as the good news broke, Blockbuster's stock price jumped in response.
Although neither Blockbuster nor Carl Icahn disclosed the "breakup fee," judging from the current situation, Carl Icahn, the gold-medal doctor who had just performed a rebirth surgery on Blockbuster, would receive a return of no less than 20 percent of his total investment.
Second:
After successfully "robbing" Blockbuster, the Wolf King had found a new target.
According to insiders, Carl Icahn had set his sights on a media company and a telecommunications company.
As for who they were, and which one he would attack first, no one knew.
But everyone knew one thing: the fund founded by Carl Icahn was expected to post extremely high returns this year.
Because the more specialized something is, the smaller its audience, most ordinary people had no interest in what Carl Icahn had been up to lately.
However, when this information reached Ted Turner's ears—
It felt like thunder exploding beside him.
Because in his world, this was Carl Icahn sounding the battle horn against Time Warner.
But up to this point, he had not yet obtained Marvel's shares.
So—
Had Carl Icahn bypassed him and raised the butcher's knife toward Time Warner?
What the hell was this supposed to be?
"Steve! Have you secured the shares?"
After finishing the Wall Street Journal article handed to him by a subordinate, and confirming that the report had already spread across North America, Ted Turner, in Atlanta, immediately called his strategic ally, Steve Case.
His urgency made Steve Case raise his voice as well.
"Ted! Don't tell me you didn't get the shares?"
"No!"
"OMG! I thought you got them and just didn't tell me, and then Carl Icahn declared war on Time Warner!"
"M—Fk! I thought you got them and didn't tell me, and then Carl Icahn swung the knife!"
"So what is going on here? Ted, did Carl Icahn abandon us?"
"Damn it! Who the hell knows what's going on? Where are you right now? Let's go find Carl Icahn!"
It wasn't surprising that the two of them were anxious.
After all, they had threatened Carl Icahn before.
So if Carl Icahn had now abandoned them?
In their eyes, that was entirely possible.
The reasons were simple.
First, Carl Icahn was in the business of robbery to begin with.
Anyone who has ever been a robber knows that success depends on how much "truth" you hold in your hands, but also not entirely on that. Because holding truth without using it is useless.
Only when you openly turn your opponent into a potted plant, fertilizer, or fish food do people in the world start fearing you.
And only when people fear you can they be threatened and robbed by you.
So anyone who wants to do business as a robber will make sure their public image and track record look brutal enough.
But now, Carl Icahn, this robber, had been threatened?
At the very least, that would damage his reputation.
At worst, it was basically someone slapping him in the face.
If Carl Icahn really pinched his nose and cooperated with Ted Turner and the others, it would be fine as long as the news didn't leak. But once it did, his future business would be finished, because no one would be afraid of him anymore.
Second, although Ted Turner and Steve Case were the two largest individual shareholders in Time Warner, the shares they held were still not enough to freely control the will of the entire board.
Combined, their holdings only gave them three seats on Time Warner's board.
The board had fourteen members.
When their personal influence amounted to only 21.42 percent of the board at most, Carl Icahn did not need to embrace them in order to dismantle Time Warner.
Because in Carl Icahn's plan, Ted Turner and Steve Case were important, but not indispensable.
So when they suddenly saw news suggesting that Carl Icahn might be attacking Time Warner, their first reaction was that he did not want to accept their threats and had instead allied himself with other shareholders.
Their second reaction was panic.
If Carl Icahn cooperated with Time Warner's other shareholders, wouldn't they be completely screwed?
The logic was simple.
If Carl Icahn embraced the Time Warner faction of shareholders, or persuaded Richard Parsons of the Rothschild or Rockefeller families, or even rallied retail investors, then once those people fully controlled the group, who would ever give up power?
Because this sudden news made them smell danger, and after confirming that neither of them had secured Marvel, Ted Turner and Steve Case rushed to New York to find Carl Icahn.
However, just as the two of them were about to question him about what was really going on, Carl Icahn, receiving them in his private office, spoke first, venting his fury.
"Do you two even have the nerve to come see me now?"
"You've completely leaked my plan!"
The accusation hit them head-on, making both men frown.
Ted Turner narrowed his eyes.
Steve Case's temper flared instantly.
"Oh Carl, explain yourself clearly. Who leaked your plan? We don't even know what your real plan is. How could we leak it?"
"And isn't everything happening right now something you did?"
"Are you trying to abandon us?"
"Did you find new helpers?"
"Helpers to attack Time Warner?"
The blunt questioning made Ted Turner sigh inwardly.
He had always thought Steve Case was an idiot.
But now—
Fine. He admitted it. Steve Case was a complete moron.
Ted Turner also suspected that the Wall Street Journal news might have been leaked by Carl Icahn himself.
But since the article didn't explicitly name Time Warner, even if Icahn had leaked it, it could have been intentional, meant as a warning not to think too highly of themselves.
As for why—
Maybe Carl Icahn didn't want to give up Marvel.
Maybe he wanted to force them to abandon their demand for Marvel shares.
Since the leak hadn't yet reached the point of open hostility, there was still room to talk, as long as everyone kept their mouths under control.
But the moment Steve Case opened his mouth—
"This is seriously some country-bumpkin behavior.
Ted Turner wanted to puke.
Never cooperate with new money again.
This is unbelievably low.
Useless at success, disastrous at failure.
Just as Ted Turner had expected, once Steve Case laid all the questions on the table, Carl Icahn's expression changed instantly. He slammed the armrest of the sofa and shouted:
"Steve! I'm warning you not to talk nonsense!"
"Yes, I'm in the robbery business, but I never change partners in the middle of a robbery!"
"And let me be clear. This leak could only have come from you!"
"Your attempt to rope in Isabella let a lot of people know that I want to dismantle Time Warner!"
"This time, the party buying Time Warner stock together with me is Lazard!"
"And if you insist on thinking Lazard is the problem—"
"I'm sure they'd be more than happy to send you to meet God!"
Boom.
Carl Icahn's words hit Steve Case like an artillery shell, blowing his mind apart.
Staring at that ferocious face, Steve Case swallowed hard and dared not say another word.
Yes. He dared not speak.
Because he knew Lazard.
It was the world's largest independent investment bank.
Or rather, one of the world's top boutique investment banks.
A so-called boutique investment bank specialized in small but elite operations.
They had no retail banking business, nor did they work with massive wealth-management firms like traditional investment banks. Their market power came either from borrowing from peers or from sovereign funds of certain countries or regions, such as the California Public Employees' Retirement System, the U.S. Teachers' Retirement Fund, or the Abu Dhabi Investment Authority.
When these funds could not tolerate losses of any kind, the true power of boutique investment banks became apparent.
As long as they didn't make mistakes themselves while manipulating the market, if they ran into trouble, the real owners of their capital would step in and resolve everything.
For example: you're a company in California and you refuse my robbery?
No problem. You can choose to pay a "life-saving fee," and we part ways amicably.
What? Still not willing?
Okay. Five minutes later, the California state government will talk to you directly.
At that point, you can explain why this year's pension fund failed to meet its expected returns.
Why do all sovereign and local funds have such impressive returns?
Because they're doing business with bullets over 20 millimeters wide.
So when Carl Icahn brought up Lazard as his ally, his meaning was crystal clear. Regardless of whether the news leak was his doing or not, he would never admit it.
And in practice, companies like Lazard rarely appear in public.
Therefore, once Carl Icahn revealed such a unified-action partner, Ted Turner began to believe that Icahn might truly not have leaked the news or switched partners.
And if Carl Icahn wasn't the problem—
Could it be that this idiot had leaked the information unintentionally?
Ted Turner shot Steve Case a subtle glance.
Yes.
How could Ted Turner ever think he himself was at fault?
If he wasn't the problem, then it had to be Steve Case.
But—
The next second, he decided to suppress all suspicion.
"Oh Carl, calm down. Steve is just anxious. We all don't want to fail, right?"
As soon as he said that, Steve Case, feeling like he had just been turned into the scapegoat, wanted to speak up. But before he could, Ted Turner openly tugged at him.
Then he turned to Carl Icahn.
"So Carl, what do you think we should do now?"
"Since our actions have likely been exposed, then—"
"—the attack must begin."
Ted Turner's words softened Carl Icahn's expression.
The old man licked his lips and said,
"To prove that the leak didn't come from my side, I'll have Lazard release a research report within three days accusing Time Warner's management of incompetence. Consider it a declaration of war."
"Then, we launch a blitzkrieg against Time Warner."
"The process is also simple. After issuing the declaration of war, I will release a proposal to 'save Time Warner.' In that proposal, I will recommend that Time Warner be split into five independent companies and that all members of the board be replaced. However, that's only the plan on the surface, because the shares I hold can at most get me five board seats, so—"
"You have three, right?"
"Five plus three makes eight, right?"
"As long as we work together, we will become the absolute majority on Time Warner's board."
"At that point, instead of five companies, we'll split it into two, and you'll be co-chairmen."
Carl Icahn's words made Ted Turner and Steve Case breathe a sigh of relief at the same time.
Since the deal could continue, all the previous disputes could be put aside.
However—
"What about Marvel?"
Ted Turner's eyes flickered as he asked the key question in their deal.
Carl Icahn chuckled softly and said, "I have no intention of breaking my word, so don't push me, okay?"
The Wolf King's meaning was very clear.
He couldn't hand Marvel over to them right now.
But he promised that he would give Marvel to them.
As for this—
Although Ted Turner and Steve Case were unwilling, they were deeply wary of Carl Icahn and did not want to completely fall out with him. In the end, they pinched their noses and agreed to his proposal.
Since everything had been discussed, the two stood up and took their leave.
Their departure allowed Carl Icahn to drop his ferocious mask, a smile spreading across his aged face.
"Useless trash."
Carl Icahn curled his lips slightly, openly venting his contempt for the two of them.
As for Ted Turner and Steve Case—
"Are we just going to let this go?"
As soon as he climbed into the SUV, Steve Case impatiently glared at Ted Turner.
"Ted! Why did you pull me back just now? Don't you realize the news was very likely leaked by Carl Icahn himself?"
"Especially after he immediately turned around and accused us. He was probably—striking first!"
"And what could we have done about it?"
Steve Case's words irritated Ted Turner.
He waved his hand and said, "Do you want to fight Carl Icahn to the death right now?"
"We know Carl Icahn has no choice. Do you really think Carl Icahn doesn't know we also have no choice?"
"Oh, sure, we could tear things apart right now. But what if he turns around and finds someone else?"
"Yes!"
"From the current situation, we're the only ones who want to break up Time Warner. But can you guarantee no one else wants to?"
"Can you guarantee Barry Meyer doesn't want to?"
"Or that Richard Parsons doesn't want to sell Warner?"
"Steve! I'll put it plainly right now!"
"If Carl Icahn goes to Richard Parsons and tells him, 'I want to find a buyer for Time Warner, then have the new company buy back Rockefeller family shares directly, guaranteeing the Rockefellers an annualized return of over ten percent,' I guarantee Richard Parsons would help him one hundred percent!"
"Because Time Warner is not his home!"
"Citigroup is his home!"
At this point, Ted Turner, who had long despised Steve Case, raised his right hand.
He extended his index finger and kept poking Steve Case in the chest.
The dull thud thud thud made Steve Case's face tense as he stared straight at Ted Turner.
At that moment, an unnamed rage rose inside him.
He felt utterly disrespected.
He wanted to vent.
But he knew—
Now was not the time.
So—
"Okay. Then let's leave it at that for now."
Steve Case replied through clenched teeth.
At this moment—
He chose to endure.
As he retreated, Ted Turner's expression eased considerably.
Too lazy to say anything more, he got out of the car, and they went their separate ways.
With consensus reached, the blitzkrieg against Time Warner officially began.
Two days later, August 20, 2005.
Lazard, on behalf of Carl Icahn, released an open letter addressed to all Time Warner shareholders.
The letter was extremely long, taking up an entire newspaper page.
But its core message boiled down to one thing—
"Time Warner's management are a bunch of useless idiots."
"Letting a traditional company embrace the virtual economy at the peak of the internet bubble?"
"How unbelievably stupid was that strategy?"
"These idiots' actions caused Time Warner's value to be severely underestimated when the internet bubble burst!"
"So, in order to ensure shareholders receive the returns they deserve, I, Carl Icahn, Wall Street's greatest savior of public companies, have already joined forces with multiple allies to acquire more than 3.2 percent of Time Warner's shares!"
"I will stand together with all shareholders whose interests have been harmed and restore Time Warner's market value to normal within the next six months. I hope everyone will support me!"
"Elect me as the one in charge!"
Cough.
Anyway, the crude version was basically that.
After this news broke, North America was instantly in an uproar.
Okay.
That's a lie.
Before the so-called "pull-the-plug" incident, retail investors in the U.S. market were still quite active.
But as always, the more specialized something is, the fewer people care.
So aside from wealthy retail investors and finance professionals, most people didn't care about Lazard's article, or didn't even know what Lazard was.
But just because the public wasn't shocked didn't mean the elite stayed silent.
When Roy E. Disney Jr., Edgar Bronfman Jr., Rupert Murdoch, Viacom chairman Sumner Redstone, and GE chairman and CEO Jeff Immelt saw the news of the Wolf King's blitzkrieg against Time Warner, they almost simultaneously exclaimed:
"What? Carl Icahn is targeting Time Warner?"
Yes.
Every single one of them was surprised.
As for why—
Roy E. Disney Jr. frowned as he stared at the newspaper.
To him, something about the situation felt off.
Everyone knew about Time Warner's internal power struggles.
Everyone knew the current chairman came from the Rockefeller family.
So a cautious man like Carl Icahn targeting Time Warner?
"Hmm… why does this feel less like Carl Icahn deciding to dismantle Time Warner, and more like Time Warner's internal struggle reaching a boiling point, to the extent that they've started bringing in Wall Street mercenaries?"
Yes.
Perhaps because Roy Disney had spent decades engaged in internal corporate warfare himself, he felt that Carl Icahn hadn't chosen Time Warner on his own, but had been invited in to perform a ritual.
And this—
"Wow. This is honestly the best news I've heard all year."
Edgar Bronfman Jr. put down the newspaper and chuckled to himself.
"No matter why Carl Icahn is targeting Time Warner, Time Warner is about to have a very bad time."
"And it'll specifically be Barry Meyer and his people suffering."
"Because Ted Turner and Steve Case aren't in Time Warner's management."
"Right now, the management is entirely made up of people from the Ross and Rockefeller families."
Rupert Murdoch shared the same sentiment.
When he learned that the enemy he had been desperate to crush was now in Carl Icahn's sights, he immediately ordered his butler to open his private cellar. As the sweet wine filled his mouth, he burst into laughter.
"Oh, Barry…"
"You're finished."
"You've been targeted by Carl Icahn."
"Now, even if you don't die, you won't escape unscathed."
The excited tone bordered on madness.
The twisting body language screamed joy.
No choice really. Rupert Murdoch had been beaten far too badly by Barry Meyer and his people over the past two years.
Compared to the excitement of those three—
Although Viacom's Sumner Redstone and GE's Jeff Immelt were also pleased, since they were Time Warner's rivals, they didn't celebrate outright.
After all, they hadn't been beaten up in recent years.
Heh.
Of course, what they most wanted to see was Carl Icahn outright destroying Time Warner.
But—
"Too bad. We probably won't see concrete results from this war for another six months."
Sumner Redstone said regretfully as he set down the report.
The secretary who brought the news nodded in agreement.
"Yes, Mr. Redstone. Under normal circumstances, this war will last at least half a year."
Unless you're scapegoating politicians like Enron did, no large company collapses overnight.
And Carl Icahn's dismantling of target companies was always extremely complex.
Buying a certain percentage of shares was only the first step.
The second step was launching attacks, winning over shareholders, and securing as many board seats as possible.
Only after fully controlling the board could he proceed to the third step: dismantling the company.
And moving from step two to step three took a fixed amount of time, usually at least three months.
Because replacing directors in a public company required a shareholders' meeting, and those weren't called on a whim.
Shareholders were busy, especially major investors. When any one of them could rival Carl Icahn in clout, why should they show up just because Carl Icahn suddenly felt like holding a meeting?
Who do you think you are?
Right?
So, in the eyes of people who understood the game, Carl Icahn's attack on Time Warner was bound to be a long process.
But the reality—
Was nothing like that.
August 22, 2005.
On the third day after Carl Icahn issued his declaration of war, Lazard released, on his behalf, a 343-page plan to save Time Warner.
In it, Carl Icahn formally proposed splitting Time Warner into five companies.
He also demanded that Time Warner buy back at least 20 billion dollars' worth of shares to boost the stock price.
Under normal circumstances, this was Icahn building momentum and courting retail shareholders.
The logic was simple.
When someone says, "If I become chairman, I'll aggressively raise the stock price, even if that means buying back and canceling shares at a loss," retail investors who bought the stock purely to make money would push him up without hesitation.
Because the company's survival doesn't matter to small shareholders.
Whoever lets me earn a year's worth of money in a single day is a god.
Right?
But just as everyone thought it was still far too early for Carl Icahn to truly throw a punch—
August 23, 2005.
Time Warner's current board responded directly to Carl Icahn's move to rally retail investors.
"We believe Mr. Carl Icahn's proposal is excellent."
"However, since our company cannot raise the cash needed for share buybacks in the short term, we hope to meet with Mr. Icahn to discuss ways to finance the buyback."
"And we are willing to accept plans involving the sale or breakup of some of our assets—"
When this response came out, everyone who understood the industry was completely stunned.
This time, genuinely stunned.
Because Time Warner's move completely exceeded all expectations.
Carl Icahn hadn't even entered your board yet, and you were already preparing to sell the company?
What the hell?
What kind of nonsense is this?
How did Time Warner kneel faster than France in World War II?