1 00:00:06,440 --> 00:00:11,120 Speaker 1: Welcome to Strictly Business Varieties podcast featuring conversations with industry 2 00:00:11,160 --> 00:00:15,080 Speaker 1: leaders about the business of entertainment. I'm Cynthia Littleton, managing 3 00:00:15,200 --> 00:00:18,680 Speaker 1: editor of Television for Variety, and today my guest in 4 00:00:18,760 --> 00:00:21,640 Speaker 1: Los Angeles is Byron Allen. Byron is one of the 5 00:00:21,680 --> 00:00:26,160 Speaker 1: busiest entrepreneurs in show business these days. He founded his company, 6 00:00:26,360 --> 00:00:31,240 Speaker 1: Entertainment Studios, in in his living room. Since then, it 7 00:00:31,280 --> 00:00:36,440 Speaker 1: has expanded rapidly from syndicated programming into cable television and 8 00:00:36,479 --> 00:00:41,440 Speaker 1: now independent film distribution. In this lively conversation, he takes 9 00:00:41,520 --> 00:00:44,360 Speaker 1: us through his recent three hundred million dollar acquisition of 10 00:00:44,400 --> 00:00:47,839 Speaker 1: the Weather Channel, his strategy in the film business, and 11 00:00:47,880 --> 00:00:51,160 Speaker 1: he also talks about his controversial decision to pursue civil 12 00:00:51,280 --> 00:00:56,480 Speaker 1: rights legal cases against major distributors alleging discrimination in their 13 00:00:56,520 --> 00:01:01,160 Speaker 1: business practices. So, by Ron all and thank you for 14 00:01:01,240 --> 00:01:04,040 Speaker 1: joining me today. Well, thank you, Cynthia Littleton, and it's 15 00:01:04,040 --> 00:01:05,640 Speaker 1: good to be here and hang out with you. I'm 16 00:01:05,680 --> 00:01:08,280 Speaker 1: a fan of yours. You started, So your company is 17 00:01:08,280 --> 00:01:12,120 Speaker 1: called Entertainment Studios, and you started you founded the company 18 00:01:12,120 --> 00:01:16,760 Speaker 1: in yes, but you have really been on a growth spurt. 19 00:01:16,800 --> 00:01:19,479 Speaker 1: You really expanded quite a bit in the last three 20 00:01:19,480 --> 00:01:22,280 Speaker 1: to five years. Yeah, yes, yes, I'm a fifty seven 21 00:01:22,319 --> 00:01:26,160 Speaker 1: year old overnight sensation. So you know, I started the 22 00:01:26,200 --> 00:01:31,559 Speaker 1: company from my dining room table five years ago. And uh, 23 00:01:31,680 --> 00:01:36,920 Speaker 1: for me, it was always business show, not shill business. 24 00:01:37,720 --> 00:01:39,480 Speaker 1: And I made it a point of that. You know. 25 00:01:40,360 --> 00:01:43,280 Speaker 1: I started as a stand up comedian when I was 26 00:01:43,440 --> 00:01:48,000 Speaker 1: fourteen years old. Fourteen years old, Uh, summer of seventy four, 27 00:01:48,000 --> 00:01:49,920 Speaker 1: I think it was, it was either seventy four seventy 28 00:01:50,280 --> 00:01:54,360 Speaker 1: I should know by this point. And uh, you know, 29 00:01:54,440 --> 00:01:57,160 Speaker 1: my mother, I was born in Detroit, Michigan, so I 30 00:01:57,200 --> 00:02:01,000 Speaker 1: come from that whole blue collar background. My dad worked 31 00:02:01,000 --> 00:02:03,480 Speaker 1: at Ford Motor Company for over thirty years, and my 32 00:02:03,520 --> 00:02:06,800 Speaker 1: grandfather worked at Great Lake Steel for over thirty years. 33 00:02:06,800 --> 00:02:09,080 Speaker 1: And these guys, I mean, if they ever called in 34 00:02:09,080 --> 00:02:11,040 Speaker 1: a day sick, I'd be shocked. And they got to 35 00:02:11,040 --> 00:02:13,400 Speaker 1: work an hour early, and they always tried to figure 36 00:02:13,400 --> 00:02:15,960 Speaker 1: out how to put a you know, twenty six hours 37 00:02:16,000 --> 00:02:18,320 Speaker 1: in a in a twenty four hour a day, and 38 00:02:18,680 --> 00:02:21,960 Speaker 1: just good guys, hard workers. And my mother and father 39 00:02:22,360 --> 00:02:25,440 Speaker 1: got a divorce. Um we came, my mother and I 40 00:02:25,560 --> 00:02:28,200 Speaker 1: came out here summer sixty eight to Los Angeles, to 41 00:02:28,240 --> 00:02:32,200 Speaker 1: Los Angeles. Excuse me, Yes, to Los Angeles from Detroit. Um, 42 00:02:32,240 --> 00:02:34,560 Speaker 1: there was you know, a lot of riots. I was 43 00:02:34,560 --> 00:02:39,079 Speaker 1: gonna say, that's a heavy time Detroit and for Detroit. Right. 44 00:02:39,160 --> 00:02:43,880 Speaker 1: So when Martin Luther King was assassinated, you know, uh, Detroit, 45 00:02:44,680 --> 00:02:50,040 Speaker 1: the top blow off and military immediately took over my neighborhood, 46 00:02:50,800 --> 00:02:53,560 Speaker 1: shut us down. Um, you know, I'm looking down the 47 00:02:53,560 --> 00:02:57,160 Speaker 1: barrel of the tank troops walking on our lawns with 48 00:02:57,200 --> 00:02:59,359 Speaker 1: bayonets and made it really clear if you don't get 49 00:02:59,360 --> 00:03:02,160 Speaker 1: in the house, we're a shoot and kill. And um, 50 00:03:02,520 --> 00:03:05,520 Speaker 1: so we thought, okay, let's go visit some family and 51 00:03:05,600 --> 00:03:08,519 Speaker 1: friends in l A. And Uh, I thought it was 52 00:03:08,560 --> 00:03:11,200 Speaker 1: a two week vacation and summer of sixty eight and 53 00:03:11,240 --> 00:03:13,600 Speaker 1: never went home. I was seven years old at that point, 54 00:03:14,440 --> 00:03:17,600 Speaker 1: and my mother who had me seventeen days after her 55 00:03:17,639 --> 00:03:20,160 Speaker 1: seventeenth birthday. So I tell everybody I have too high 56 00:03:20,160 --> 00:03:26,120 Speaker 1: school diplomas. My mother happens to be very beautiful and smart, 57 00:03:26,200 --> 00:03:27,960 Speaker 1: and she ended up going to u c l A. 58 00:03:28,840 --> 00:03:32,480 Speaker 1: And she ended up getting her master's degree and sent 59 00:03:32,560 --> 00:03:35,480 Speaker 1: him a TV production at u c l A. And 60 00:03:35,480 --> 00:03:39,160 Speaker 1: while raising me, she was attending school and she went 61 00:03:39,240 --> 00:03:42,800 Speaker 1: to NBC and asked them, Uh, could she get a 62 00:03:42,880 --> 00:03:48,640 Speaker 1: job doing anything? And they said no, and she said, well, 63 00:03:48,640 --> 00:03:51,480 Speaker 1: can I be an intern? And they said, we don't 64 00:03:51,480 --> 00:03:53,920 Speaker 1: have an intern program. And then she asked a very 65 00:03:53,920 --> 00:03:57,280 Speaker 1: important question, will you start one with me? And they 66 00:03:57,320 --> 00:04:00,880 Speaker 1: said yes. And from that she became a tour guy, 67 00:04:01,120 --> 00:04:05,400 Speaker 1: and later she became a publicist working in the publicity 68 00:04:05,400 --> 00:04:10,560 Speaker 1: and marketing department at NBC. And UH, when she was 69 00:04:10,600 --> 00:04:13,120 Speaker 1: a tour guy, I used to go out to NBC 70 00:04:13,320 --> 00:04:15,200 Speaker 1: with her and wait for her to get off work. 71 00:04:15,560 --> 00:04:18,159 Speaker 1: And as a kid, I just sat and I watched 72 00:04:18,200 --> 00:04:21,040 Speaker 1: them make television. And up until this point, I was 73 00:04:21,040 --> 00:04:22,960 Speaker 1: going to go work with my dad at Ford Motor 74 00:04:23,000 --> 00:04:27,320 Speaker 1: Company or my granddaddy at Great Lake Steel and build cars. 75 00:04:27,720 --> 00:04:30,719 Speaker 1: And UH, when I saw this different kind of factory, 76 00:04:30,720 --> 00:04:34,600 Speaker 1: a content factory, it changed my life and my perspective. 77 00:04:34,640 --> 00:04:38,440 Speaker 1: I saw Johnny Carson tape The Tonight Show, and then 78 00:04:38,480 --> 00:04:40,600 Speaker 1: I would walk across the hall and I would watch 79 00:04:40,640 --> 00:04:43,719 Speaker 1: Red Fox tape Sanford and Son, and then I go 80 00:04:43,800 --> 00:04:46,520 Speaker 1: around the corner and watch Freddie Prince du chic on 81 00:04:46,560 --> 00:04:49,520 Speaker 1: the Man, and then the next day would be Flip 82 00:04:49,520 --> 00:04:51,800 Speaker 1: Wilson doing the Flip Wilson Show, and then I go 83 00:04:51,839 --> 00:04:55,040 Speaker 1: across the hall and I would watch a local sportscaster 84 00:04:55,200 --> 00:04:58,320 Speaker 1: named Bryant Gumbel do the local sports and a local 85 00:04:58,360 --> 00:05:01,400 Speaker 1: weather man named Pat Saj do the weather for k NBC. 86 00:05:01,920 --> 00:05:03,640 Speaker 1: Then I go down the hall and watch them do 87 00:05:03,640 --> 00:05:06,640 Speaker 1: a soap opera, Days of Our Lives, and I just was. 88 00:05:06,760 --> 00:05:09,080 Speaker 1: I would go from studio to studio studio and watch 89 00:05:09,120 --> 00:05:12,919 Speaker 1: Bob Hope and George Burns and all of these amazing, iconic, 90 00:05:13,279 --> 00:05:16,600 Speaker 1: super talented people make television, and I was, I was 91 00:05:16,680 --> 00:05:20,200 Speaker 1: instantly in love. And I watched the executives in NBC, 92 00:05:20,600 --> 00:05:25,040 Speaker 1: Fred Silverman and Brandon Tartakov interact with the producers, George 93 00:05:25,040 --> 00:05:28,680 Speaker 1: Slaughter and Jimmy Komack interact with the with the writers 94 00:05:28,720 --> 00:05:31,800 Speaker 1: and the directors and the crew and the unions, and 95 00:05:31,839 --> 00:05:34,440 Speaker 1: it was a symphony. And it was a symphony that 96 00:05:34,560 --> 00:05:38,359 Speaker 1: I loved watching and listening to. And I thought, and 97 00:05:38,400 --> 00:05:41,320 Speaker 1: I knew, right then, this is what I'm going to 98 00:05:41,480 --> 00:05:44,440 Speaker 1: dedicate my life too. This is what I'm going to 99 00:05:44,560 --> 00:05:48,760 Speaker 1: do until the day I die. I read one day 100 00:05:48,760 --> 00:05:52,839 Speaker 1: in the New York Times that Verizon was going to 101 00:05:52,880 --> 00:05:55,880 Speaker 1: spend twenty three billion dollars to bring fiber to the 102 00:05:55,920 --> 00:05:59,160 Speaker 1: home and offer a hundred and fifty h D channels 103 00:05:59,680 --> 00:06:02,760 Speaker 1: and compete with cable. So I went to Verizon and 104 00:06:02,800 --> 00:06:05,800 Speaker 1: I said, okay, I read about your initiative and I said, 105 00:06:05,800 --> 00:06:12,160 Speaker 1: I'm here to launch ten HD networks, ten of them. 106 00:06:12,200 --> 00:06:15,000 Speaker 1: And they said, how many do you have now? I 107 00:06:15,040 --> 00:06:20,159 Speaker 1: said zero and they were like, okay, he's cuckoo for cocopuffs, 108 00:06:20,560 --> 00:06:22,760 Speaker 1: and they go, what are you thinking? I said, well, 109 00:06:22,800 --> 00:06:24,240 Speaker 1: if you really want to know what I'm thinking, I 110 00:06:24,240 --> 00:06:28,960 Speaker 1: think that I said, this is a huge opportunity. I said, 111 00:06:29,240 --> 00:06:33,760 Speaker 1: a hundred years ago, it was the industrial revolution, and 112 00:06:34,080 --> 00:06:37,359 Speaker 1: the industrial revolution was fueled by gas and oil, and 113 00:06:37,440 --> 00:06:41,080 Speaker 1: today it's the digital revolution, and that this revolution is 114 00:06:41,120 --> 00:06:44,440 Speaker 1: being fueled by content. And we're not very efficient, and 115 00:06:44,480 --> 00:06:47,320 Speaker 1: we have to do exactly what Rockefeller did in Henry Ford. 116 00:06:47,360 --> 00:06:49,520 Speaker 1: And I love and I've studied all of their moves 117 00:06:50,040 --> 00:06:54,120 Speaker 1: because I just love entrepreneurs in business. It's just something 118 00:06:54,120 --> 00:06:57,000 Speaker 1: that I was more into that than sports. And I said, 119 00:06:57,040 --> 00:07:01,120 Speaker 1: black Rockefeller was vertically integrated. He we have to be 120 00:07:01,279 --> 00:07:04,359 Speaker 1: vertically integrated. He took the oil out of the ground, 121 00:07:04,360 --> 00:07:07,040 Speaker 1: put it in the pipelines, send it to the refineries, 122 00:07:07,120 --> 00:07:09,200 Speaker 1: put it on the trucks, send it to the gas stations, 123 00:07:09,440 --> 00:07:11,240 Speaker 1: and put it in every gas tank and made it 124 00:07:11,280 --> 00:07:13,280 Speaker 1: affordable and efficient. And we have to do the same 125 00:07:13,280 --> 00:07:17,760 Speaker 1: thing with content. One years later. That business mind set 126 00:07:17,920 --> 00:07:22,840 Speaker 1: applies to day and I said, when I sent a crew, 127 00:07:23,200 --> 00:07:27,040 Speaker 1: I said, look, my dad worked it forward. My granddaddy 128 00:07:27,040 --> 00:07:29,600 Speaker 1: worked at Great Lake Steel. These guys worked twenty hours 129 00:07:29,600 --> 00:07:32,840 Speaker 1: a day, but sometimes TV crews want to work two 130 00:07:32,840 --> 00:07:35,480 Speaker 1: hours and try and get paid for twelve. It's a 131 00:07:35,600 --> 00:07:39,600 Speaker 1: very inefficient business. And I'm here to bring that Henry 132 00:07:39,600 --> 00:07:43,960 Speaker 1: forward Rockefeller efficiency to this space. So when I send 133 00:07:44,000 --> 00:07:47,040 Speaker 1: a camera crew to Pebble Beach to cover the car show, 134 00:07:47,080 --> 00:07:50,239 Speaker 1: concourse the elegance, I don't want them to just shoot 135 00:07:50,280 --> 00:07:53,400 Speaker 1: the car show for our twenty four hour television network 136 00:07:53,440 --> 00:07:55,840 Speaker 1: Cars dot TV, which we want an Emmy for and 137 00:07:55,840 --> 00:07:58,880 Speaker 1: I'm very proud of. I also want them to shoot 138 00:07:58,920 --> 00:08:02,040 Speaker 1: the resorts and Pebble Beach for our travel channel My 139 00:08:02,120 --> 00:08:06,280 Speaker 1: Destination dot TV, Shoot the chefs up there for our 140 00:08:06,280 --> 00:08:09,640 Speaker 1: cooking channel Recipe dot TV, Shoot what's going on in 141 00:08:09,680 --> 00:08:12,280 Speaker 1: the pet community up there for our twenty four pet 142 00:08:12,400 --> 00:08:15,480 Speaker 1: channel Pets dot TV, and shoot all the celebrities that 143 00:08:15,520 --> 00:08:18,800 Speaker 1: come to the show for our entertainment channel ees dot TV, 144 00:08:19,400 --> 00:08:22,360 Speaker 1: and they say, wow, that's brilliant. We've had a lot 145 00:08:22,360 --> 00:08:25,080 Speaker 1: of pitches. No one's ever come to us with that 146 00:08:25,120 --> 00:08:28,040 Speaker 1: point of view and that unique business model. They say, 147 00:08:28,120 --> 00:08:30,840 Speaker 1: we won't give you ten networks, but we will give 148 00:08:30,880 --> 00:08:34,240 Speaker 1: you six. And we made history and we launched six 149 00:08:34,320 --> 00:08:38,080 Speaker 1: twenty four HD networks in a single day a little 150 00:08:38,120 --> 00:08:41,079 Speaker 1: over nine years ago. And those are all of our 151 00:08:41,080 --> 00:08:43,760 Speaker 1: twenty four hour networks that are on Verizon and A 152 00:08:43,960 --> 00:08:45,760 Speaker 1: T and T and some of them are on Dish 153 00:08:45,800 --> 00:08:48,560 Speaker 1: and Direct and you're up to eight now we have 154 00:08:48,679 --> 00:08:50,719 Speaker 1: eight now, right? And so what I did was I 155 00:08:50,760 --> 00:08:54,240 Speaker 1: went involve all the dot TVs about twelve years ago. 156 00:08:55,800 --> 00:08:59,320 Speaker 1: It's the premium dot TVs. Uh, And I said, look 157 00:08:59,400 --> 00:09:01,720 Speaker 1: the Internet. At this point it was we're in you know, 158 00:09:02,280 --> 00:09:04,319 Speaker 1: we're coming out of you know, we're in dot coms. 159 00:09:04,320 --> 00:09:07,560 Speaker 1: And I said, dot com is for me? Was internet? 160 00:09:07,559 --> 00:09:13,000 Speaker 1: One point out it was read it? But I said, habitually, 161 00:09:13,520 --> 00:09:16,600 Speaker 1: we watch more than we read. And I said, what's 162 00:09:16,600 --> 00:09:19,680 Speaker 1: going to happen is we're going to have an unbelievable 163 00:09:19,720 --> 00:09:25,120 Speaker 1: insatiable appetite to watch it online. So I said, dot 164 00:09:25,160 --> 00:09:29,720 Speaker 1: TV represents watch it. So I started buying all of 165 00:09:29,760 --> 00:09:32,600 Speaker 1: the beach front real estate. That's why we ended up 166 00:09:32,640 --> 00:09:35,680 Speaker 1: with comedy dot TV and cars dot TV, pets dot TV, 167 00:09:35,920 --> 00:09:37,560 Speaker 1: and we have a number of them. We haven't turned 168 00:09:37,600 --> 00:09:41,040 Speaker 1: on music, dot TV, kids, dot TV, sports dot TV, 169 00:09:41,360 --> 00:09:44,160 Speaker 1: news dot TV, and we'll turn them all on. And 170 00:09:44,200 --> 00:09:47,520 Speaker 1: the goal is to be direct to the consumers worldwide 171 00:09:47,520 --> 00:09:53,320 Speaker 1: on every device, different verticals. That's the vision, and that's 172 00:09:53,360 --> 00:09:58,319 Speaker 1: been the vision since day one. So we we turned 173 00:09:58,360 --> 00:10:01,360 Speaker 1: on those networks and and we we said we're gonna 174 00:10:01,360 --> 00:10:06,120 Speaker 1: own all the content, shoot everything in native HD. A 175 00:10:06,200 --> 00:10:10,120 Speaker 1: day crew and a night crew that produces and edits, 176 00:10:10,160 --> 00:10:12,920 Speaker 1: just like at Ford Motor Company. Because when I was 177 00:10:12,960 --> 00:10:14,839 Speaker 1: a kid, my mom and I used to drop my 178 00:10:14,920 --> 00:10:17,160 Speaker 1: dad off at Ford Motor Company at the night crew. 179 00:10:17,520 --> 00:10:19,280 Speaker 1: So I said, we will have a night crew here, 180 00:10:19,559 --> 00:10:21,480 Speaker 1: so we'll have editors to go during the day, and 181 00:10:21,520 --> 00:10:23,600 Speaker 1: they will have editors go at night and keep the 182 00:10:23,640 --> 00:10:27,199 Speaker 1: machine going and keep making the content and make it. 183 00:10:27,520 --> 00:10:30,959 Speaker 1: And what like my mentor who took the radio shows 184 00:10:31,800 --> 00:10:35,600 Speaker 1: and made and made television shows, I took the magazine 185 00:10:35,679 --> 00:10:39,920 Speaker 1: stand and made them twenty four hour verticals. You have 186 00:10:40,000 --> 00:10:43,800 Speaker 1: plenty of car magazines, and plenty of cooking magazines, and 187 00:10:43,960 --> 00:10:47,640 Speaker 1: plenty of travel magazines. There those are passion points. People 188 00:10:47,640 --> 00:10:51,680 Speaker 1: will always be interested in that. And our new magazine 189 00:10:51,720 --> 00:10:56,680 Speaker 1: stand is the mobile phone, not your traditional magazine. Acade ago. 190 00:10:57,160 --> 00:10:59,240 Speaker 1: That's why I started buying all the dot TVs. And 191 00:10:59,280 --> 00:11:03,440 Speaker 1: I said, you know, I couldn't raise money, so I said, 192 00:11:03,480 --> 00:11:06,960 Speaker 1: I will finance it myself. Uh. And this is a 193 00:11:07,080 --> 00:11:11,199 Speaker 1: vision that's hard to explain, and but they will eventually 194 00:11:11,240 --> 00:11:14,640 Speaker 1: show up, and they will eventually start watching over the top. 195 00:11:15,440 --> 00:11:20,320 Speaker 1: And we we uh launched, and then we added a 196 00:11:20,360 --> 00:11:23,760 Speaker 1: seventh network. We became the largest producer of court shows 197 00:11:24,480 --> 00:11:27,240 Speaker 1: and now we have six of them, and I created 198 00:11:27,280 --> 00:11:30,440 Speaker 1: a twenty four hour vertical. I couldn't license the court 199 00:11:30,480 --> 00:11:33,000 Speaker 1: shows to any cable network, so I said, okay, we'll 200 00:11:33,000 --> 00:11:35,720 Speaker 1: just start our own one. So we started uh Justice 201 00:11:35,760 --> 00:11:40,160 Speaker 1: Central dot TV and UH then someone came to me 202 00:11:40,200 --> 00:11:43,920 Speaker 1: and said you should buy the Weather channel. A buddy 203 00:11:43,920 --> 00:11:48,080 Speaker 1: of mine who satellites our networks and he's the largest, 204 00:11:48,200 --> 00:11:51,160 Speaker 1: one of the largest in that space, satellite networks, and 205 00:11:51,200 --> 00:11:53,160 Speaker 1: he said you should buy it. And he said, I 206 00:11:53,240 --> 00:11:55,720 Speaker 1: used to be, uh, one of the top executives at 207 00:11:55,720 --> 00:11:59,040 Speaker 1: this at the Weather Channel, and he says, people don't 208 00:11:59,040 --> 00:12:02,200 Speaker 1: realize how much money it names, and they don't realize 209 00:12:02,200 --> 00:12:04,400 Speaker 1: what a cash cole it is and how he goes 210 00:12:04,400 --> 00:12:08,000 Speaker 1: and it fits your other seven networks perfectly. It's your model. 211 00:12:08,120 --> 00:12:10,720 Speaker 1: It's a vertical into itself. It's a vertical into itself, 212 00:12:10,720 --> 00:12:14,240 Speaker 1: and it's you own all the content and you're able 213 00:12:14,280 --> 00:12:16,319 Speaker 1: to go on every device everywhere. We were one of 214 00:12:16,360 --> 00:12:19,080 Speaker 1: the first to achieve to v everywhere, not because of 215 00:12:19,120 --> 00:12:21,840 Speaker 1: the technology, but because we own the rights to our 216 00:12:21,960 --> 00:12:26,000 Speaker 1: content and we were able to go on every vertical everywhere. 217 00:12:26,640 --> 00:12:29,920 Speaker 1: And I looked at it and I said, you're right. 218 00:12:30,280 --> 00:12:34,200 Speaker 1: He said, Look, it's owned by black Snow, who manages 219 00:12:34,240 --> 00:12:37,679 Speaker 1: over four hundred and thirty five billion. It's managed its 220 00:12:37,679 --> 00:12:41,280 Speaker 1: owned by Baying who manages over a hundred billion in cash, 221 00:12:41,640 --> 00:12:44,520 Speaker 1: as well as Comcast, and so these are really smart, 222 00:12:44,600 --> 00:12:49,960 Speaker 1: sophisticated operators sellers. And I said, I love it, So 223 00:12:50,040 --> 00:12:52,079 Speaker 1: let's get into it. And we got into it. It 224 00:12:52,200 --> 00:12:54,559 Speaker 1: wasn't an easy deal to get done. How long did 225 00:12:54,559 --> 00:12:56,800 Speaker 1: it take you to to to work that out? Because 226 00:12:56,800 --> 00:12:59,600 Speaker 1: you announced the deal in April, a three million dollar 227 00:12:59,679 --> 00:13:02,760 Speaker 1: deal March twenty two. We didn't announce the deal. We 228 00:13:02,800 --> 00:13:05,560 Speaker 1: did the I remember I could barely go to bed 229 00:13:05,600 --> 00:13:08,160 Speaker 1: the night before because I didn't want to oversleep. And 230 00:13:08,360 --> 00:13:11,840 Speaker 1: all the bankers and lawyers and I mean dozens and 231 00:13:11,960 --> 00:13:17,000 Speaker 1: dozens on the phone at five am, uh, confirming everybody 232 00:13:17,040 --> 00:13:20,760 Speaker 1: had all their paperwork in line, check check the wire 233 00:13:20,800 --> 00:13:26,280 Speaker 1: transfer went through, and uh it was. It was at 234 00:13:26,320 --> 00:13:28,400 Speaker 1: five am, and it was all done at five ten, 235 00:13:28,760 --> 00:13:31,680 Speaker 1: and the wires started going through, and I think it 236 00:13:31,760 --> 00:13:36,520 Speaker 1: was sixty eight different wires to various entities. We did 237 00:13:36,559 --> 00:13:39,360 Speaker 1: a test run the day before of a dollar per 238 00:13:39,400 --> 00:13:42,080 Speaker 1: wire to make sure all sixty eight of them worked. 239 00:13:42,520 --> 00:13:44,080 Speaker 1: So I told them, I said, look at this, we 240 00:13:44,120 --> 00:13:46,800 Speaker 1: haven't even closed. I'm already sixty eight bucks over budget. 241 00:13:47,280 --> 00:13:51,480 Speaker 1: So all the wires went through, and after we confirmed 242 00:13:51,840 --> 00:13:54,520 Speaker 1: that all the wires had gone through and everybody had 243 00:13:54,520 --> 00:13:58,840 Speaker 1: gotten their share, then we announced at eight am, and uh, 244 00:13:59,120 --> 00:14:02,320 Speaker 1: you know, it was great. The team did a phenomenal job. 245 00:14:02,400 --> 00:14:05,800 Speaker 1: It wasn't an easy negotiation. Uh. These were some of 246 00:14:05,840 --> 00:14:11,240 Speaker 1: the brightest and toughest executives and lawyers. And it tested 247 00:14:11,320 --> 00:14:13,960 Speaker 1: me and it tested me. I mean at one point 248 00:14:15,880 --> 00:14:17,880 Speaker 1: we had we had the deal two or three times 249 00:14:17,880 --> 00:14:19,640 Speaker 1: and we lost it and it was at the end 250 00:14:19,680 --> 00:14:23,640 Speaker 1: of the day. Uh was it over? Price? Was it over? 251 00:14:24,000 --> 00:14:29,960 Speaker 1: It was over? Well, it was over terms, conditions, price. 252 00:14:30,080 --> 00:14:32,400 Speaker 1: It was like everything. You had to go through the 253 00:14:32,600 --> 00:14:35,240 Speaker 1: entire menu of everything, and it was. It was one 254 00:14:35,280 --> 00:14:38,400 Speaker 1: of those things. It was. It was a marathon times ten. 255 00:14:38,880 --> 00:14:40,680 Speaker 1: You had to run it and you had to just 256 00:14:40,840 --> 00:14:44,560 Speaker 1: not let go. And finally this was this will be 257 00:14:44,600 --> 00:14:47,680 Speaker 1: in my book. One day we had agreed on everything. 258 00:14:47,760 --> 00:14:51,400 Speaker 1: I had it done for a lot less. I had 259 00:14:51,400 --> 00:14:57,200 Speaker 1: the deal done, uh, for forty one million dollars less, 260 00:14:59,400 --> 00:15:04,400 Speaker 1: and uh, they said, we only need one signature. And 261 00:15:04,480 --> 00:15:06,560 Speaker 1: this was on a Thursday. I had signed my name 262 00:15:06,600 --> 00:15:10,240 Speaker 1: two hundred times and those signatures were being held in 263 00:15:10,560 --> 00:15:13,560 Speaker 1: escrow by the attorneys, and I had signed everything and 264 00:15:13,560 --> 00:15:16,560 Speaker 1: everybody had signed everything except for one signature. And this 265 00:15:16,600 --> 00:15:19,120 Speaker 1: was a Thursday. So I said, can we get that 266 00:15:19,160 --> 00:15:20,960 Speaker 1: signature and so I can wire you this money and 267 00:15:20,960 --> 00:15:23,640 Speaker 1: we can be done. And they said, yeah, we just 268 00:15:23,680 --> 00:15:26,520 Speaker 1: need that one signature. You'll get it on Monday or Tuesday. 269 00:15:27,400 --> 00:15:31,040 Speaker 1: And didn't come Monday, and in Tuesday, I said, where's 270 00:15:31,080 --> 00:15:34,760 Speaker 1: the signature. Well, I'm ready to wire this money and 271 00:15:34,760 --> 00:15:37,600 Speaker 1: on Tuesday, say we got some bad news. I go, 272 00:15:37,680 --> 00:15:40,440 Speaker 1: oh yeah. I said, there's no such thing as bad 273 00:15:40,440 --> 00:15:42,360 Speaker 1: news right now unless you will want to take less. 274 00:15:44,600 --> 00:15:46,880 Speaker 1: And the bad news is for you. They said, no, 275 00:15:47,480 --> 00:15:51,080 Speaker 1: two more bidders. Two more bidders emerged over the weekend, 276 00:15:51,880 --> 00:15:55,320 Speaker 1: and they're higher than you, and one is ten million 277 00:15:55,360 --> 00:15:58,400 Speaker 1: more than you, and people closing in a natal second. 278 00:15:59,600 --> 00:16:01,760 Speaker 1: And they and we're sure you're really upset with us 279 00:16:01,760 --> 00:16:04,520 Speaker 1: and you don't want to participate in the process. And 280 00:16:04,640 --> 00:16:07,120 Speaker 1: I said that's not true. I said, I am upset, 281 00:16:07,920 --> 00:16:11,400 Speaker 1: but I am going to continue because this is a decision. 282 00:16:11,640 --> 00:16:14,680 Speaker 1: I can be bitter, I can be better. And they said, 283 00:16:15,480 --> 00:16:18,920 Speaker 1: I said to them, give me a number that you 284 00:16:18,960 --> 00:16:22,000 Speaker 1: want me to pay you, so we can end this 285 00:16:22,560 --> 00:16:26,280 Speaker 1: right now. I said, here's the difference. I own my company. 286 00:16:28,200 --> 00:16:32,960 Speaker 1: I don't have a board of directors. Here, no analysis, paralysis. 287 00:16:33,800 --> 00:16:36,240 Speaker 1: The decision is made right here in the moment. As 288 00:16:36,280 --> 00:16:38,640 Speaker 1: you tell me. You tell me the number, and I'll 289 00:16:38,640 --> 00:16:40,960 Speaker 1: either say yes or no, and if it's yes, it 290 00:16:41,000 --> 00:16:44,360 Speaker 1: will be done within ten minutes. And they said, I 291 00:16:44,400 --> 00:16:46,720 Speaker 1: don't have a number, and I want, Oh my god, 292 00:16:46,720 --> 00:16:49,040 Speaker 1: how do you not have a number. You have to 293 00:16:49,040 --> 00:16:52,440 Speaker 1: give me a number. They said, no number, and then 294 00:16:52,480 --> 00:16:54,000 Speaker 1: I said, and they said, we'll get back to you. 295 00:16:54,880 --> 00:16:57,440 Speaker 1: And I knew what was going to happen. Next we 296 00:16:57,560 --> 00:17:00,120 Speaker 1: hung up the phone. I looked at my executives and 297 00:17:00,160 --> 00:17:02,400 Speaker 1: I said, and we're now going into a bidding war. 298 00:17:03,240 --> 00:17:08,159 Speaker 1: So let's gear up and uh. The next morning, at 299 00:17:08,200 --> 00:17:10,320 Speaker 1: six thirty five in the morning, I got an email 300 00:17:10,880 --> 00:17:13,760 Speaker 1: and they said we have three interested parties. And I 301 00:17:13,840 --> 00:17:15,960 Speaker 1: was one of them. Do you know who the other 302 00:17:16,000 --> 00:17:18,720 Speaker 1: two were? I didn't, and and and all of my 303 00:17:18,760 --> 00:17:21,400 Speaker 1: executives wanted to know, and I said, ladies and gentlemen, 304 00:17:21,640 --> 00:17:24,879 Speaker 1: it doesn't matter. We have to get rid of them. 305 00:17:25,080 --> 00:17:29,640 Speaker 1: So and so they said, we have three interested parties 306 00:17:30,240 --> 00:17:33,919 Speaker 1: and we want best and final bids by two pm 307 00:17:34,119 --> 00:17:39,040 Speaker 1: Easterom today and we're going to make a decision and 308 00:17:39,080 --> 00:17:42,199 Speaker 1: sign with one of you today. So I called up 309 00:17:42,600 --> 00:17:45,639 Speaker 1: and I said, well, this isn't fair. They go, why, 310 00:17:45,880 --> 00:17:47,960 Speaker 1: I go, well, I know my two competitors are on 311 00:17:48,000 --> 00:17:50,480 Speaker 1: the East Coast. I knew that about them. I said, 312 00:17:50,520 --> 00:17:52,760 Speaker 1: so it's nine thirty five for them. They're at their 313 00:17:52,800 --> 00:17:56,280 Speaker 1: desk having coffee. It's six thirty five here. I said, 314 00:17:56,280 --> 00:17:59,680 Speaker 1: My people are still asleeper, waking up or getting ready, 315 00:18:00,000 --> 00:18:02,199 Speaker 1: and they go, yeah, we thought about that, but we 316 00:18:02,240 --> 00:18:05,359 Speaker 1: know you're awake. I go, how do you know I'm awake? 317 00:18:05,400 --> 00:18:10,280 Speaker 1: They go, because you never sleep. I said, that's true. 318 00:18:10,560 --> 00:18:13,840 Speaker 1: But I go, we have to get this on the 319 00:18:13,880 --> 00:18:16,400 Speaker 1: same level playing field. They go, nope, you gotta get 320 00:18:16,400 --> 00:18:19,680 Speaker 1: yours in by eleven am. And they said, are you in? 321 00:18:19,800 --> 00:18:21,919 Speaker 1: Are you gonna go for it tonight? They go I 322 00:18:21,960 --> 00:18:23,800 Speaker 1: said yeah. They go, So what do you have to say? 323 00:18:23,960 --> 00:18:28,680 Speaker 1: I said, Mohammed Ali. They go, Mohammed Ali. I got 324 00:18:28,760 --> 00:18:30,399 Speaker 1: those were just the two words that just came to 325 00:18:30,440 --> 00:18:33,800 Speaker 1: my mind at this particular moment, Mohammed Ali. So they go, 326 00:18:33,880 --> 00:18:36,320 Speaker 1: what does that mean? I said, tell the other two guys, 327 00:18:36,320 --> 00:18:39,200 Speaker 1: I'm gonna hit him so hard. I'm gonna knock him 328 00:18:39,200 --> 00:18:42,440 Speaker 1: out of the ring into the cheap seats like Mohammed Ali. 329 00:18:43,600 --> 00:18:48,040 Speaker 1: They go, Okay, bye bye. Mohammad Ali. So I hung 330 00:18:48,119 --> 00:18:49,639 Speaker 1: up the phone and then I said, what do I 331 00:18:49,680 --> 00:18:51,800 Speaker 1: need to do? And I it was an instinctive thing. 332 00:18:52,280 --> 00:18:53,760 Speaker 1: I said, what do I need to do? Beat these 333 00:18:53,760 --> 00:18:55,680 Speaker 1: other two guys? And I don't really know who they are, 334 00:18:56,400 --> 00:18:58,520 Speaker 1: but I said, what is it worth to me? The 335 00:18:58,560 --> 00:19:01,520 Speaker 1: top line number, because this is a asset we must 336 00:19:01,520 --> 00:19:04,560 Speaker 1: have for strategic reasons. And the number that came in 337 00:19:04,600 --> 00:19:07,280 Speaker 1: mind was forty one million more than our previous bit. 338 00:19:07,880 --> 00:19:09,919 Speaker 1: And so I put it up, We wrote it up, 339 00:19:09,960 --> 00:19:13,920 Speaker 1: and I sent it at ten fifty nine am our time. 340 00:19:13,960 --> 00:19:19,080 Speaker 1: I made it with one minute to spare, and five after, 341 00:19:19,240 --> 00:19:22,639 Speaker 1: like ten minutes after eleven am, they called me up 342 00:19:24,000 --> 00:19:26,439 Speaker 1: the bankers on Wall Street, the bankers on Wall Street, 343 00:19:26,760 --> 00:19:29,200 Speaker 1: and you could hear like almost this crackle on their voice. 344 00:19:30,359 --> 00:19:33,480 Speaker 1: Are we reading this right? I go, what are you reading? 345 00:19:34,200 --> 00:19:36,000 Speaker 1: And they explained it to me and said, yes, those 346 00:19:36,080 --> 00:19:40,440 Speaker 1: numbers are correct. Those are the numbers. And they went, okay, 347 00:19:40,520 --> 00:19:42,399 Speaker 1: we'll get right back to you. I go, yeah, it's 348 00:19:42,440 --> 00:19:45,720 Speaker 1: time to close, guys, this game is over. And we closed, 349 00:19:46,520 --> 00:19:48,600 Speaker 1: and uh, and I just said, I'm not gonna let 350 00:19:48,600 --> 00:19:51,000 Speaker 1: it go. And why was it an important transformative deal 351 00:19:51,040 --> 00:19:54,679 Speaker 1: for us? It helped to bring along our other seven 352 00:19:54,720 --> 00:19:57,840 Speaker 1: networks because our other seven networks were having a tough 353 00:19:57,840 --> 00:20:01,080 Speaker 1: time getting distribution and I didn't have the average. And 354 00:20:01,119 --> 00:20:04,880 Speaker 1: this is a this is a unique iconic network. This 355 00:20:04,960 --> 00:20:08,560 Speaker 1: network is it's in the American homes for nearly forty years. 356 00:20:08,600 --> 00:20:11,719 Speaker 1: It's the most widely distributed channel in your portfolio now, 357 00:20:11,920 --> 00:20:15,800 Speaker 1: the most widely distributed homes. It's the only network that 358 00:20:15,880 --> 00:20:20,119 Speaker 1: protects and saves lives. A lot of people depend on it, farmers, 359 00:20:20,160 --> 00:20:24,920 Speaker 1: the government, businesses, retail. It is an extremely important information 360 00:20:24,960 --> 00:20:27,959 Speaker 1: source and it's twenty four hours of weather news and 361 00:20:27,960 --> 00:20:31,520 Speaker 1: it is a phenomenal, best in class asset and it 362 00:20:31,560 --> 00:20:38,680 Speaker 1: will only lift our others. And uh, we immediately saw that. 363 00:20:39,119 --> 00:20:42,240 Speaker 1: So we had a big negotiation right after we close 364 00:20:42,960 --> 00:20:46,959 Speaker 1: and someone with millions and millions of subs, and we 365 00:20:46,960 --> 00:20:49,639 Speaker 1: were we're talking about negotiation with a distributor, with a 366 00:20:49,720 --> 00:20:53,280 Speaker 1: distributor with a platform for the Weather Channel. And we 367 00:20:53,280 --> 00:20:56,480 Speaker 1: were able to renew the Weather Channel, and more importantly, 368 00:20:56,480 --> 00:20:58,720 Speaker 1: we're able to get distribution for some of our other 369 00:20:58,800 --> 00:21:02,800 Speaker 1: cable networks to leverage game. And that that was it. 370 00:21:02,960 --> 00:21:06,240 Speaker 1: So that's why I said, I'm not I'm not gonna 371 00:21:06,320 --> 00:21:09,320 Speaker 1: lose this. I'm gonna And I said to him, I said, 372 00:21:09,320 --> 00:21:13,159 Speaker 1: be really clear, I'm not gonna lose this. This is 373 00:21:13,280 --> 00:21:16,719 Speaker 1: not having I'm going to win. You can tell whoever 374 00:21:16,760 --> 00:21:19,520 Speaker 1: you need to tell, but just now I'm taking this 375 00:21:19,560 --> 00:21:21,960 Speaker 1: one who was the main banker that was orchestrating the 376 00:21:22,000 --> 00:21:26,520 Speaker 1: deal for the sellers. They were using, Uh, Morgan Stanley 377 00:21:27,040 --> 00:21:30,359 Speaker 1: and they were terrific and Morgan Stanley and they were 378 00:21:30,440 --> 00:21:33,399 Speaker 1: nice that they at the end they said, wow, they said, 379 00:21:33,520 --> 00:21:36,560 Speaker 1: you have been amazing every step of the way. When 380 00:21:36,600 --> 00:21:38,919 Speaker 1: we thought you would get upset and step out, you didn't. 381 00:21:39,040 --> 00:21:42,120 Speaker 1: You were cool, you were calm, you were focused. Uh 382 00:21:42,160 --> 00:21:44,600 Speaker 1: And they were, they said, and you beat some really 383 00:21:44,640 --> 00:21:49,560 Speaker 1: sophisticated players. The financing of your company and your ambitions. 384 00:21:49,600 --> 00:21:53,960 Speaker 1: So you own you own entertainment studios outright. You don't 385 00:21:54,000 --> 00:21:57,879 Speaker 1: have investors, do you? So you financed it with bank loans? 386 00:21:57,920 --> 00:22:00,960 Speaker 1: How do you you know to enter? Seeing this company 387 00:22:01,000 --> 00:22:03,960 Speaker 1: shouldn't be around today. I don't have it. I own 388 00:22:03,960 --> 00:22:06,879 Speaker 1: it on not by design. I couldn't get anyone to 389 00:22:06,960 --> 00:22:09,520 Speaker 1: invest in me, or to believe in my vision, or 390 00:22:09,520 --> 00:22:11,960 Speaker 1: to offer me one penny. I watched a lot of 391 00:22:11,960 --> 00:22:14,359 Speaker 1: people raise money, and for whatever reason, I just didn't 392 00:22:14,359 --> 00:22:17,760 Speaker 1: have to access to capital. And I said, that's okay. 393 00:22:18,280 --> 00:22:21,399 Speaker 1: You know, you just you do it yourself, you know, 394 00:22:21,560 --> 00:22:25,840 Speaker 1: you just build it yourself. And as a kid, I 395 00:22:25,840 --> 00:22:30,920 Speaker 1: would study all these iconic entrepreneurs and one of them 396 00:22:30,920 --> 00:22:37,200 Speaker 1: I loved was Annenberg, Walter Walter Hannenberg and uh, publisher 397 00:22:37,240 --> 00:22:40,199 Speaker 1: of TV Guide and other things, other things, and you know, 398 00:22:40,359 --> 00:22:43,119 Speaker 1: he was terrific. And there's a story where you know, 399 00:22:43,160 --> 00:22:45,760 Speaker 1: they wouldn't let him in the country club because he 400 00:22:45,880 --> 00:22:50,000 Speaker 1: was Jewish, and and he just went and built his 401 00:22:50,080 --> 00:22:55,119 Speaker 1: own magnificent, spectacular golf course that is now in Palm 402 00:22:55,160 --> 00:22:58,040 Speaker 1: Springs and all the presidents have played on it. And 403 00:22:58,080 --> 00:23:00,119 Speaker 1: it's just look, if they don't let you in, you 404 00:23:00,160 --> 00:23:03,399 Speaker 1: built it yourself, and you make it better. And I 405 00:23:03,520 --> 00:23:06,280 Speaker 1: watched a lot of brilliant, brilliant people like him and 406 00:23:06,280 --> 00:23:09,600 Speaker 1: just said, that's how you play the game. And well, 407 00:23:09,640 --> 00:23:13,959 Speaker 1: I couldn't raise the money. Uh. I went to Factors 408 00:23:14,800 --> 00:23:17,879 Speaker 1: and the fact that we survived Factors is one of 409 00:23:17,920 --> 00:23:20,520 Speaker 1: the most amazing things ever. These are companies that will 410 00:23:20,600 --> 00:23:24,480 Speaker 1: lend you against your receivables, but not at great rates. 411 00:23:24,520 --> 00:23:27,440 Speaker 1: At one point I was borrowing money against the world's 412 00:23:27,480 --> 00:23:32,199 Speaker 1: greatest receivables receivables from Pepsi and mcdonald'son Johnson and Johnson 413 00:23:32,520 --> 00:23:37,520 Speaker 1: at twenty five and twenty six interest. It's amazing that 414 00:23:37,600 --> 00:23:41,720 Speaker 1: you couldn't create cash flow to have any operations. It 415 00:23:41,880 --> 00:23:47,359 Speaker 1: was unbelievably challenging. It was excruciating. But I didn't have 416 00:23:47,440 --> 00:23:49,800 Speaker 1: access to capital. I couldn't get investors. I couldn't get 417 00:23:49,800 --> 00:23:51,439 Speaker 1: a banngalow. And they said, well, you can go to 418 00:23:51,480 --> 00:23:53,600 Speaker 1: these factors. And factors were kind of creative for the 419 00:23:53,640 --> 00:23:56,800 Speaker 1: garment industry. People would ship off their goods and then 420 00:23:56,840 --> 00:23:58,920 Speaker 1: they would say, okay, well the story hasn't paid me 421 00:23:59,000 --> 00:24:02,800 Speaker 1: yet in fact ters, but they would lend against those orders, 422 00:24:02,800 --> 00:24:04,840 Speaker 1: and so they I said, well, can you please do 423 00:24:04,880 --> 00:24:07,240 Speaker 1: it against this? This is coca you know, this is pepsie, 424 00:24:07,280 --> 00:24:11,159 Speaker 1: this is McDonald's. They said, sure. Got paid every penny 425 00:24:11,240 --> 00:24:16,560 Speaker 1: from those advertisers out of over the years, ran hundreds 426 00:24:16,600 --> 00:24:20,639 Speaker 1: of millions through there maybe less than a hundred grand defaulted, 427 00:24:21,160 --> 00:24:24,960 Speaker 1: maybe less than a hundred thousand defaulted out of over 428 00:24:25,000 --> 00:24:28,480 Speaker 1: a hundred plus million. So then I was able to 429 00:24:28,520 --> 00:24:32,000 Speaker 1: move into banking relationships. And the one thing I had, 430 00:24:31,800 --> 00:24:34,639 Speaker 1: I said I had that I learned was I have 431 00:24:34,680 --> 00:24:37,880 Speaker 1: to create my own bank. And my bank became internal, 432 00:24:38,080 --> 00:24:42,040 Speaker 1: my own internal cash flow UM and I call it 433 00:24:42,080 --> 00:24:45,719 Speaker 1: the bank of content. And every turn it's you. You 434 00:24:45,960 --> 00:24:49,879 Speaker 1: have found the way around the big obstacles. The story 435 00:24:49,920 --> 00:24:52,720 Speaker 1: of your mother's own experience coming to l A is 436 00:24:52,840 --> 00:24:56,480 Speaker 1: very instructive in terms of where you got that entrepreneurial gene. 437 00:24:57,080 --> 00:24:59,520 Speaker 1: Well you start with me, Well, you know that's it, 438 00:24:59,720 --> 00:25:02,320 Speaker 1: and you know, you know, the no is when you 439 00:25:02,359 --> 00:25:05,080 Speaker 1: go to work. The no is not when you shut down. 440 00:25:05,720 --> 00:25:09,000 Speaker 1: And uh and I like being nimble like that, you know. 441 00:25:09,160 --> 00:25:12,359 Speaker 1: When unfortunately Susan Jackson passed away. She was one of 442 00:25:12,400 --> 00:25:15,879 Speaker 1: the founders of Freestyle Releasing. And I went to lunch 443 00:25:15,880 --> 00:25:19,240 Speaker 1: with her business partner, Mark Boarding, and I said, you know, 444 00:25:19,720 --> 00:25:21,719 Speaker 1: now that Susan's passed away, what would you like to do? 445 00:25:21,840 --> 00:25:23,160 Speaker 1: You want to stay in and you want to sell? 446 00:25:23,440 --> 00:25:25,479 Speaker 1: He said, I want to sell And I said how 447 00:25:25,560 --> 00:25:27,760 Speaker 1: much do you want? And he gave me a number 448 00:25:27,920 --> 00:25:31,040 Speaker 1: and I said done, I will buy it in Freestyle. 449 00:25:31,119 --> 00:25:35,040 Speaker 1: Freestyle was an independent film distributor and that was kind 450 00:25:35,040 --> 00:25:37,080 Speaker 1: of your entree into the film business, which has been 451 00:25:37,119 --> 00:25:39,440 Speaker 1: an expansion for you in the last couple of years. 452 00:25:39,520 --> 00:25:42,320 Speaker 1: That's exactly right. And he was taken aback and I said, 453 00:25:42,359 --> 00:25:44,520 Speaker 1: I know, you're kind of surprised. I said, remember I 454 00:25:44,560 --> 00:25:49,400 Speaker 1: own my company, No Analysis Paralysis. Your company is sold. 455 00:25:49,440 --> 00:25:51,000 Speaker 1: He goes, well, if there's two or three other people 456 00:25:51,040 --> 00:25:53,000 Speaker 1: way down the line from you. I go, how did 457 00:25:53,000 --> 00:25:55,159 Speaker 1: they have? I said, have they closed? He said no. 458 00:25:55,280 --> 00:25:57,399 Speaker 1: I go, well then they lost. Just call him up 459 00:25:57,400 --> 00:26:00,280 Speaker 1: and let them know they lost, and just enjoy the lunch. 460 00:26:00,560 --> 00:26:04,880 Speaker 1: I said, there's nothing to negotiate. You gave me a number. Yeah, 461 00:26:04,880 --> 00:26:07,160 Speaker 1: I'm sure the books are clean. I'm sure that I'll 462 00:26:07,200 --> 00:26:10,440 Speaker 1: get a good, clean legal opinion. Let's we're done and 463 00:26:10,640 --> 00:26:14,760 Speaker 1: uh we closed and uh. And I said, what's really 464 00:26:14,840 --> 00:26:18,359 Speaker 1: valuable is about this company. He's terrific Mark. But also 465 00:26:18,440 --> 00:26:21,080 Speaker 1: to have a direct relationship with all the movie theaters. 466 00:26:21,160 --> 00:26:24,280 Speaker 1: I really wanted that exhibitors, all the exhibitors, just like 467 00:26:24,320 --> 00:26:26,800 Speaker 1: I have a direct relationship with all the TV stations 468 00:26:26,840 --> 00:26:29,560 Speaker 1: and I have a direct relationship with all of the advertisers. 469 00:26:29,800 --> 00:26:32,359 Speaker 1: I said, I really want that direct relationship with them, 470 00:26:32,400 --> 00:26:35,400 Speaker 1: all the exhibitors. And he also had an output deal 471 00:26:35,440 --> 00:26:38,320 Speaker 1: with Netflix that pays us on box office performance. And 472 00:26:38,320 --> 00:26:40,520 Speaker 1: they pretty much only have two of those deals, one 473 00:26:40,560 --> 00:26:43,000 Speaker 1: with us and one with the Walt Disney Company. And 474 00:26:43,040 --> 00:26:46,680 Speaker 1: I said, I'm gonna supersize this. And uh. I started 475 00:26:46,680 --> 00:26:50,200 Speaker 1: studying box Office Mojo because I love the numbers. And 476 00:26:50,240 --> 00:26:53,040 Speaker 1: I said, you know, I've studied hundreds and hundreds of movies, 477 00:26:53,080 --> 00:26:55,320 Speaker 1: and I noticed the one type of movie that's never 478 00:26:55,359 --> 00:27:00,600 Speaker 1: failed is a shark movie. And uh, and I said, 479 00:27:00,640 --> 00:27:02,800 Speaker 1: I want a shark movie. I want a shark movie 480 00:27:02,800 --> 00:27:04,600 Speaker 1: to be our first movie because I can't find one 481 00:27:04,640 --> 00:27:07,879 Speaker 1: that's failed. And they said, well, you know, the Weinsteins 482 00:27:07,880 --> 00:27:10,159 Speaker 1: have a shark movie that they're not going to be 483 00:27:10,200 --> 00:27:15,080 Speaker 1: putting out wide because they're short on cash because of 484 00:27:15,960 --> 00:27:18,320 Speaker 1: the Hateful Eight didn't do as well as they had 485 00:27:18,359 --> 00:27:22,879 Speaker 1: holped and I said, okay, I said let's go get it. 486 00:27:23,680 --> 00:27:25,520 Speaker 1: And they said what should we offer him? And I said, 487 00:27:25,520 --> 00:27:28,960 Speaker 1: we'll go off from two million bucks. So our head 488 00:27:29,000 --> 00:27:32,760 Speaker 1: of acquisitions went to Bob Weinstein and Bob, it's like, 489 00:27:32,800 --> 00:27:34,359 Speaker 1: get out of here, Get out of here. And then 490 00:27:34,400 --> 00:27:36,120 Speaker 1: I said, what's going on with that shark movie. They said, 491 00:27:36,160 --> 00:27:38,399 Speaker 1: Bob won't sell it totes at that price. I saw it. Well, 492 00:27:38,440 --> 00:27:40,919 Speaker 1: he's my neighbor out in Malibu. He literally is like 493 00:27:41,000 --> 00:27:42,680 Speaker 1: eight doors now, and I'll go up on his deck 494 00:27:42,720 --> 00:27:44,720 Speaker 1: and we'll get something done. So I walked down on 495 00:27:44,760 --> 00:27:46,880 Speaker 1: the weekend. I walked down to his deck and said, Bob, 496 00:27:46,920 --> 00:27:48,400 Speaker 1: it's by right now, and I want to get something 497 00:27:48,440 --> 00:27:50,760 Speaker 1: done on the on the Shark movie. And he looked 498 00:27:50,800 --> 00:27:52,960 Speaker 1: at me and says, do you have any money? I 499 00:27:53,000 --> 00:27:56,119 Speaker 1: said yes. He says, well, have a seat. And so 500 00:27:56,600 --> 00:27:59,359 Speaker 1: he says, what are you thinking? And I said, I'm 501 00:27:59,480 --> 00:28:01,520 Speaker 1: thinking we should get this done at two million bucks. 502 00:28:01,560 --> 00:28:04,359 Speaker 1: He says, I already told you're got to get out 503 00:28:04,400 --> 00:28:06,119 Speaker 1: of here with that two million bucks. I go two 504 00:28:06,200 --> 00:28:08,080 Speaker 1: and a half buck. He goes. No. He goes, I 505 00:28:08,119 --> 00:28:10,399 Speaker 1: want something with a three in front of it. I said, okay, 506 00:28:10,440 --> 00:28:15,000 Speaker 1: three bucks. He goes, and more zeros, I said, And 507 00:28:15,160 --> 00:28:19,920 Speaker 1: I said, I said okay, um, let's do it. Let's 508 00:28:19,960 --> 00:28:24,439 Speaker 1: do it. And I get up to leave and he goes. 509 00:28:25,800 --> 00:28:29,119 Speaker 1: He goes, I want some schmuck insurance. And I had 510 00:28:29,200 --> 00:28:30,760 Speaker 1: to sit back down. I go, Bob, what do you mean, 511 00:28:30,840 --> 00:28:33,040 Speaker 1: what do you mean? What is schmuck? What what schmuck insurance? 512 00:28:33,040 --> 00:28:35,720 Speaker 1: Do you want? Bob? He goes, He goes, I want 513 00:28:36,400 --> 00:28:39,560 Speaker 1: two percent of the back end. He goes, two percent 514 00:28:39,600 --> 00:28:41,040 Speaker 1: of back end, goes, what does it matter? Just give 515 00:28:41,080 --> 00:28:43,240 Speaker 1: me two percent of back in. I said, okay, Bob, 516 00:28:43,360 --> 00:28:45,120 Speaker 1: and I'm gonna say something to you no one's ever 517 00:28:45,160 --> 00:28:48,360 Speaker 1: said to you before. He goes, yeah, right, I said, 518 00:28:48,360 --> 00:28:49,920 Speaker 1: I'm not gonna give you two percent of back in 519 00:28:50,760 --> 00:28:55,120 Speaker 1: I'm gonna give you two percent of every dollar I collect, 520 00:28:55,880 --> 00:29:00,280 Speaker 1: two percent of micros. He goes what I said, Bob, 521 00:29:00,360 --> 00:29:02,239 Speaker 1: I don't want to sit across the table from you, 522 00:29:02,320 --> 00:29:05,160 Speaker 1: going over receipts and trying to explain to you why 523 00:29:05,160 --> 00:29:07,160 Speaker 1: I spend so much money on hair and makeup or 524 00:29:07,200 --> 00:29:09,520 Speaker 1: whatever it is from Mandy Moore and Claire Holt. I'm 525 00:29:09,520 --> 00:29:11,880 Speaker 1: not going to have that conversation with you. This is 526 00:29:11,920 --> 00:29:14,640 Speaker 1: one movie. I'm gonna put out a hundred plus movies 527 00:29:14,640 --> 00:29:16,960 Speaker 1: over the next seven years. We're not going to get 528 00:29:17,080 --> 00:29:19,920 Speaker 1: rich off of this movie. This is a marathon, not 529 00:29:20,040 --> 00:29:23,320 Speaker 1: a sprint. You are an excellent film producer. I want 530 00:29:23,360 --> 00:29:26,160 Speaker 1: you to call me first when you have something you 531 00:29:26,240 --> 00:29:28,680 Speaker 1: think is gonna make money. So this two percent i'm 532 00:29:28,760 --> 00:29:32,320 Speaker 1: giving you is two percent to say, let's go on 533 00:29:32,360 --> 00:29:35,400 Speaker 1: a long journey together and do it the right way. 534 00:29:35,720 --> 00:29:39,040 Speaker 1: Entertainment Studios Motion Pictures has been very active picking up 535 00:29:39,400 --> 00:29:43,800 Speaker 1: picking up titles at festivals, documentaries, animation. You really seem 536 00:29:43,840 --> 00:29:47,640 Speaker 1: to be building up portfolio. Yes. Yes. When I met 537 00:29:47,640 --> 00:29:51,280 Speaker 1: my wife seventeen eighteen years ago, and uh, she said, 538 00:29:51,320 --> 00:29:53,200 Speaker 1: what are you doing with your life and I'm building 539 00:29:53,240 --> 00:29:56,280 Speaker 1: the world's biggest media company. And she was like, okay, 540 00:29:56,280 --> 00:29:58,280 Speaker 1: well you're kind of cute and now I know you're crazy. 541 00:29:59,600 --> 00:30:01,520 Speaker 1: So you know, that was it. I said. You know, 542 00:30:01,800 --> 00:30:04,280 Speaker 1: I'm not about it's not about what I like. It's 543 00:30:04,320 --> 00:30:07,480 Speaker 1: what does the world want. I'm feeding them what they want. 544 00:30:07,920 --> 00:30:12,920 Speaker 1: So it's all of that documentaries, animation, action pictures, traumas, comedies. 545 00:30:13,240 --> 00:30:15,800 Speaker 1: And I love it, Cynthia, I love it. I love 546 00:30:16,000 --> 00:30:19,200 Speaker 1: you know, for me, every day is a play date 547 00:30:19,320 --> 00:30:21,760 Speaker 1: with the world, and you just wake up and you 548 00:30:21,840 --> 00:30:26,000 Speaker 1: go and you play, and you just you just pursue 549 00:30:26,040 --> 00:30:29,880 Speaker 1: your love, pursue your passion. So for us, we are 550 00:30:30,920 --> 00:30:32,280 Speaker 1: I'm gonna I want to get to the point where 551 00:30:32,280 --> 00:30:36,280 Speaker 1: we're putting out twenty four movies a year. That's ambitious. 552 00:30:36,280 --> 00:30:38,400 Speaker 1: That's a that's a big slate. By this by the 553 00:30:38,440 --> 00:30:40,680 Speaker 1: standard of a student of a major studio, it is. 554 00:30:40,840 --> 00:30:43,400 Speaker 1: It is very ambitious. Its just like saying, hey, I 555 00:30:43,440 --> 00:30:48,120 Speaker 1: want to own HD Networks and uh forty one television 556 00:30:48,160 --> 00:30:51,600 Speaker 1: shows and and basically we control where the you know, 557 00:30:51,880 --> 00:30:54,640 Speaker 1: it's probably the largest collection of time periods on broadcast 558 00:30:54,680 --> 00:30:59,320 Speaker 1: television stations. We control thousands of hours on TVs, syndication 559 00:30:59,440 --> 00:31:04,640 Speaker 1: syndicate asian Um. For us, these are very unique times. 560 00:31:04,800 --> 00:31:06,920 Speaker 1: This is not a space where you want to be small. 561 00:31:07,360 --> 00:31:09,320 Speaker 1: This is a space where you want to be big 562 00:31:09,400 --> 00:31:12,120 Speaker 1: and get bigger, and be bigger and continue to be bigger, 563 00:31:13,000 --> 00:31:16,480 Speaker 1: or else you will get flushed out of the system. Uh. 564 00:31:16,680 --> 00:31:21,320 Speaker 1: I don't have a fear of about being ambitious. I 565 00:31:21,360 --> 00:31:25,200 Speaker 1: have a fear about not being ambitious enough because you 566 00:31:25,240 --> 00:31:27,400 Speaker 1: don't want to wake up and you're just too small. 567 00:31:27,840 --> 00:31:30,480 Speaker 1: That is if I have any fear, that's the fear 568 00:31:31,000 --> 00:31:35,320 Speaker 1: being too ambitious or being ambitious. That's the asset. Don't 569 00:31:35,320 --> 00:31:37,920 Speaker 1: wake up and find you're too small or you're done. 570 00:31:38,600 --> 00:31:40,640 Speaker 1: Let me ask you a couple of years ago, you 571 00:31:40,760 --> 00:31:44,360 Speaker 1: took a controversial step. You filed some very high profile 572 00:31:44,440 --> 00:31:50,960 Speaker 1: lawsuits against the biggest distributors in television, Comcast, Charter, Direct TV, 573 00:31:51,800 --> 00:31:56,000 Speaker 1: and you accuse them of exhibiting racial bias in not 574 00:31:56,760 --> 00:32:00,720 Speaker 1: negotiating with you in carriage deals on your on your 575 00:32:00,880 --> 00:32:04,680 Speaker 1: HD television networks. Can you tell me about what motivated 576 00:32:04,720 --> 00:32:06,680 Speaker 1: that and do you feel like it was it was 577 00:32:06,720 --> 00:32:11,680 Speaker 1: a successful path for entertainment studios? Yes to take Yes, 578 00:32:11,800 --> 00:32:18,640 Speaker 1: so the matter with a T and T has been resolved. So, um, 579 00:32:19,480 --> 00:32:25,200 Speaker 1: we wish a T and T extremely well. Um the lawsuit, 580 00:32:25,280 --> 00:32:28,920 Speaker 1: the twenty billion against Comcast and the twenty billion against Charter, 581 00:32:29,120 --> 00:32:32,280 Speaker 1: I'm sorry, the ten billion against Charter are still in 582 00:32:32,320 --> 00:32:35,160 Speaker 1: the court and they're in the nine Circuit, and I'm 583 00:32:35,240 --> 00:32:40,040 Speaker 1: highly confident we will prevail. So I'm not a lititious person. 584 00:32:40,320 --> 00:32:45,840 Speaker 1: I had not sued anyone before the Obama administration came 585 00:32:45,920 --> 00:32:52,480 Speaker 1: to me and said, Hey, Comcast, Charter, blah blah blah, Time, 586 00:32:52,480 --> 00:32:55,960 Speaker 1: Warner Cable, these guys want to get bigger. Are they 587 00:32:56,080 --> 00:33:00,800 Speaker 1: good corporate citizens? And will you them to d C 588 00:33:01,080 --> 00:33:03,160 Speaker 1: and talk to the d o J and the f 589 00:33:03,280 --> 00:33:07,480 Speaker 1: c C. And I said sure. So I go to 590 00:33:07,600 --> 00:33:10,040 Speaker 1: the to d C and I sit with the Department 591 00:33:10,040 --> 00:33:13,080 Speaker 1: of Justice and eighteen lawyers taking notes and I'm sitting 592 00:33:13,080 --> 00:33:16,720 Speaker 1: with them and hour after hour and talking with them 593 00:33:16,760 --> 00:33:20,880 Speaker 1: and the FCC, and they said, are they good corporate citizen? 594 00:33:20,960 --> 00:33:23,000 Speaker 1: As I said, the answer is not know. The answer 595 00:33:23,080 --> 00:33:27,719 Speaker 1: is hell now and you know that. And they said, well, 596 00:33:27,720 --> 00:33:32,480 Speaker 1: what's you're thinking. I said, well, I said, they spend 597 00:33:32,640 --> 00:33:37,840 Speaker 1: as an industry seventy billion a year licensing cable networks. 598 00:33:38,880 --> 00:33:45,040 Speaker 1: Not one penny goes to African American ownership, not to 599 00:33:45,080 --> 00:33:51,240 Speaker 1: be confused with targeted ownership. I also said, why don't 600 00:33:51,280 --> 00:33:53,400 Speaker 1: you just look at the board of directors at Charter. 601 00:33:54,800 --> 00:33:58,760 Speaker 1: They have eleven white guys on their board. Eleven white 602 00:33:58,760 --> 00:34:02,600 Speaker 1: guys get together every ninety days and look around the 603 00:34:02,680 --> 00:34:05,840 Speaker 1: room and say and they say, this feels right. I said, 604 00:34:05,880 --> 00:34:09,880 Speaker 1: they don't even have someone who represents of the global 605 00:34:09,920 --> 00:34:15,759 Speaker 1: population on their board, a woman, a woman. How do 606 00:34:15,880 --> 00:34:19,640 Speaker 1: you not have at least one woman out of eleven 607 00:34:19,680 --> 00:34:22,839 Speaker 1: white guys. I can't believe I'm having this conversation with 608 00:34:22,920 --> 00:34:27,919 Speaker 1: you today, Department of Justice. They don't have any one 609 00:34:28,000 --> 00:34:34,920 Speaker 1: that's Hispanic or Asian, or someone representing the LBGT community. Nothing. 610 00:34:35,640 --> 00:34:38,000 Speaker 1: I said, you really think they should be the number 611 00:34:38,000 --> 00:34:41,520 Speaker 1: two provider of broadband in America? Look at their board 612 00:34:41,600 --> 00:34:44,040 Speaker 1: of eleven white guys and tell me why you think 613 00:34:44,280 --> 00:34:46,200 Speaker 1: they should have the keys, I says, as a matter 614 00:34:46,200 --> 00:34:49,759 Speaker 1: of fact, they don't even spend sixty seventy thousand a 615 00:34:49,840 --> 00:34:52,640 Speaker 1: year to pay someone to sit in the closet and 616 00:34:52,880 --> 00:34:55,920 Speaker 1: pretend to be the chief diversity officer. They don't even 617 00:34:55,920 --> 00:34:59,239 Speaker 1: have a chief diversity officer, and you had me fly 618 00:34:59,280 --> 00:35:02,000 Speaker 1: across the country tree to ask me if I think 619 00:35:02,000 --> 00:35:05,839 Speaker 1: they're good corporate citizens. You guys need to google. I'll 620 00:35:05,880 --> 00:35:08,320 Speaker 1: do it. I'm not gonna leave this for my daughters 621 00:35:08,360 --> 00:35:10,839 Speaker 1: to deal with. I'm gonna deal with it for once 622 00:35:10,920 --> 00:35:14,239 Speaker 1: or for all. And they said, what are you thinking 623 00:35:14,280 --> 00:35:16,600 Speaker 1: about doing? I said, I'm gonna do it in a 624 00:35:16,680 --> 00:35:19,800 Speaker 1: way where it can't be ignored, so we can stop 625 00:35:19,840 --> 00:35:22,160 Speaker 1: the excuses and we can get it past us. I 626 00:35:22,160 --> 00:35:25,279 Speaker 1: don't I don't want my daughters talking about women not 627 00:35:25,440 --> 00:35:28,400 Speaker 1: being on boards and people of color not being included. 628 00:35:28,719 --> 00:35:30,960 Speaker 1: I said, because in America, we don't really have a 629 00:35:30,960 --> 00:35:35,000 Speaker 1: true democracy unless all of our voices are widely heard. 630 00:35:37,080 --> 00:35:39,560 Speaker 1: All of our voices must be heard, not just some 631 00:35:39,719 --> 00:35:42,880 Speaker 1: of them. And so I must structure it where we 632 00:35:42,960 --> 00:35:46,200 Speaker 1: have a level playing field. And I'm going to do it, 633 00:35:46,760 --> 00:35:52,040 Speaker 1: and I'm gonna do it in a way that's very unique. 634 00:35:52,600 --> 00:35:56,399 Speaker 1: And so I said, look, here's what happens when you're 635 00:35:56,400 --> 00:36:00,600 Speaker 1: a woman, or a person, a person of color, you're 636 00:36:00,600 --> 00:36:04,160 Speaker 1: African American. They put the four DS on you, the 637 00:36:04,239 --> 00:36:09,319 Speaker 1: four d s. First, they dismiss you, all right, that's 638 00:36:09,360 --> 00:36:11,880 Speaker 1: the first D. And then you get a little frustrated 639 00:36:11,880 --> 00:36:14,760 Speaker 1: by that. And so when you get a little frustrated, 640 00:36:14,760 --> 00:36:18,799 Speaker 1: they discredit you. Oh look at her, she's just cranky. 641 00:36:19,000 --> 00:36:21,960 Speaker 1: And then you you say, no, no, it's not true. 642 00:36:22,000 --> 00:36:24,480 Speaker 1: You step up and you speak louder. It might be 643 00:36:24,560 --> 00:36:27,200 Speaker 1: protest or whatever it is. Then they put that third 644 00:36:27,320 --> 00:36:30,480 Speaker 1: D on you, They demonize you. And they have to 645 00:36:30,520 --> 00:36:32,719 Speaker 1: do that third D to get right with their so 646 00:36:32,840 --> 00:36:36,759 Speaker 1: called Christian selves, so they can do the fourth and 647 00:36:36,800 --> 00:36:45,640 Speaker 1: inevitable D, which is destroy you, dismiss, discredit, demonize, destroyed. 648 00:36:45,840 --> 00:36:48,400 Speaker 1: And I figured out that matrix that they use on 649 00:36:48,480 --> 00:36:50,160 Speaker 1: women and people of color, and I said, I'm gonna 650 00:36:50,200 --> 00:36:52,759 Speaker 1: work around that matrix. And the best way to do 651 00:36:52,800 --> 00:36:56,840 Speaker 1: it is to use the legal process. And before before 652 00:36:57,000 --> 00:37:00,360 Speaker 1: your experience talking to the Justice Apartment, you have had 653 00:37:00,600 --> 00:37:03,279 Speaker 1: been knocking on the door but had not to talk 654 00:37:04,239 --> 00:37:08,000 Speaker 1: about carrying your channels. And you've gotten no engagement, No one, 655 00:37:08,480 --> 00:37:11,960 Speaker 1: No one got engagement. And what I said is the 656 00:37:12,000 --> 00:37:14,319 Speaker 1: quickest way to get rid of my lawsuit is to 657 00:37:14,360 --> 00:37:17,040 Speaker 1: bring in someone of color, bring in an African American 658 00:37:17,040 --> 00:37:19,680 Speaker 1: and say that Byron Allen's wrong. This person owns a 659 00:37:19,719 --> 00:37:24,160 Speaker 1: network on our platform. That person didn't exist before the lawsuit, 660 00:37:24,400 --> 00:37:26,920 Speaker 1: and I said, you should not be in that position 661 00:37:27,000 --> 00:37:29,600 Speaker 1: when you're spending seventy billion a year. And I know 662 00:37:29,760 --> 00:37:32,080 Speaker 1: a hundred people who have come to you to get networks, 663 00:37:32,239 --> 00:37:35,000 Speaker 1: whether it was Will Smith or Don Corneius or whoever 664 00:37:35,040 --> 00:37:37,839 Speaker 1: it was, and tried to get cable networks with you. 665 00:37:38,160 --> 00:37:40,359 Speaker 1: And it was no, no, no, no no. And you 666 00:37:40,400 --> 00:37:42,200 Speaker 1: should not be in a position where you have five 667 00:37:42,440 --> 00:37:45,920 Speaker 1: D channels and not one of them are owned by 668 00:37:45,960 --> 00:37:50,200 Speaker 1: someone in the community. That's just wrong. And I'm holding 669 00:37:50,280 --> 00:37:56,359 Speaker 1: you accountable. And so I said, Okay, we're gonna get 670 00:37:56,400 --> 00:38:01,480 Speaker 1: around the four DS by using the ecosystem. So I 671 00:38:01,560 --> 00:38:06,520 Speaker 1: paid my lawyers millions and millions of dollars and they said, 672 00:38:06,600 --> 00:38:11,440 Speaker 1: let's use Civil Rights Act eighteen sixty six section the 673 00:38:11,520 --> 00:38:13,440 Speaker 1: year in which it was put on the books, eighteen 674 00:38:13,520 --> 00:38:16,919 Speaker 1: sixty six to protect the newly freed slaves to make 675 00:38:17,000 --> 00:38:23,279 Speaker 1: sure African Americans had economic inclusion government and commercial contracting. Well, 676 00:38:23,360 --> 00:38:26,160 Speaker 1: nobody even knew about the law. They forgot about it. 677 00:38:26,360 --> 00:38:28,960 Speaker 1: So I took it and I put it on steroids 678 00:38:29,160 --> 00:38:32,640 Speaker 1: and I said, here, here's twenty billion. Now, let's deal 679 00:38:32,680 --> 00:38:35,800 Speaker 1: with it. Now, are you doing business with the community 680 00:38:35,880 --> 00:38:39,120 Speaker 1: or are you not, And I said, this is something 681 00:38:39,480 --> 00:38:42,600 Speaker 1: that we're going to address forever, for once and for all. 682 00:38:42,640 --> 00:38:44,719 Speaker 1: And this is a rat. I'm not going to complain. 683 00:38:45,160 --> 00:38:48,040 Speaker 1: I'm gonna take you to federal court, and in federal 684 00:38:48,080 --> 00:38:50,800 Speaker 1: court you need to explain why you're not in business 685 00:38:51,080 --> 00:38:54,319 Speaker 1: with You have Spanish language networks where the people who 686 00:38:54,320 --> 00:38:57,239 Speaker 1: own them can't even speak Spanish. So we have to 687 00:38:57,360 --> 00:39:02,120 Speaker 1: now start the process of being at the table right 688 00:39:02,960 --> 00:39:06,319 Speaker 1: And this is a very important thing. Especially after I 689 00:39:06,320 --> 00:39:10,120 Speaker 1: started having my kids, someone said to me, why does 690 00:39:10,160 --> 00:39:11,560 Speaker 1: it have to be black owned? Why can't it be 691 00:39:11,600 --> 00:39:15,719 Speaker 1: black targeted? And I said, okay, well, your father, you 692 00:39:15,719 --> 00:39:18,479 Speaker 1: have some little girls just like me. I said, would 693 00:39:18,480 --> 00:39:23,759 Speaker 1: you be okay if I control the image, the likeness, 694 00:39:23,880 --> 00:39:27,239 Speaker 1: how your little girls grew up in selve themselves. Could 695 00:39:27,280 --> 00:39:30,799 Speaker 1: I shape their image and their self esteem with my 696 00:39:30,960 --> 00:39:34,520 Speaker 1: control of over film and TV? And are you all 697 00:39:34,600 --> 00:39:37,839 Speaker 1: right with that? I have complete control over how they 698 00:39:37,840 --> 00:39:40,760 Speaker 1: see themselves and whether they're beautiful or stupid, or smart, 699 00:39:40,920 --> 00:39:44,319 Speaker 1: or wanted or not wanted. He goes, now, I'm not 700 00:39:44,400 --> 00:39:46,640 Speaker 1: comfortable with that, And I said, why do you think 701 00:39:46,680 --> 00:39:48,920 Speaker 1: I would be comfortable with that? Now that I have 702 00:39:49,040 --> 00:39:51,760 Speaker 1: my girls, I'm not asking for a seat at the table. 703 00:39:52,040 --> 00:39:54,719 Speaker 1: That may be clear. I'm taking a seat at the 704 00:39:54,719 --> 00:39:57,640 Speaker 1: table and I'm going to be a part of that process. 705 00:39:58,600 --> 00:40:02,680 Speaker 1: This is changing. The game has changed. My name is 706 00:40:02,719 --> 00:40:06,680 Speaker 1: Byron Allen, and let me explain the new rules. And 707 00:40:06,760 --> 00:40:10,040 Speaker 1: so when I dropped that lawsuit, it changed the game. 708 00:40:10,680 --> 00:40:15,240 Speaker 1: They were like, WHOA, nobody has ever approached us this way, 709 00:40:16,200 --> 00:40:20,839 Speaker 1: and so that lawsuit, those lawsuits are history and their 710 00:40:20,920 --> 00:40:26,720 Speaker 1: design to address very important issues in this country. CORRECTA. 711 00:40:26,760 --> 00:40:28,640 Speaker 1: Scott King was a friend of mine and I bought 712 00:40:28,680 --> 00:40:30,800 Speaker 1: the rights to her life story because I wanted to 713 00:40:30,800 --> 00:40:35,360 Speaker 1: look at Martin Luther King through her eyes. And she said, looked, Byron, 714 00:40:35,400 --> 00:40:37,560 Speaker 1: as black people, we in this country, we had four 715 00:40:37,600 --> 00:40:44,600 Speaker 1: major challenges. Number one end slavery. Number two end Jim Crow, 716 00:40:44,680 --> 00:40:47,080 Speaker 1: which I think was more damaging than slavery, because when 717 00:40:47,080 --> 00:40:50,520 Speaker 1: we were slaves, you know, we were considered property and valuable. 718 00:40:50,520 --> 00:40:52,719 Speaker 1: When when we were free, we were considered the enemy. 719 00:40:52,760 --> 00:40:55,000 Speaker 1: And that's when they said kill all black people, lynch 720 00:40:55,040 --> 00:40:58,080 Speaker 1: all black people, burn all black people, because they looked 721 00:40:58,120 --> 00:41:01,480 Speaker 1: at as as competitors. And then she said number three 722 00:41:01,600 --> 00:41:05,440 Speaker 1: achieved civil rights. And then she choked up and she 723 00:41:05,600 --> 00:41:08,799 Speaker 1: said in number four. The real reason they killed my 724 00:41:08,880 --> 00:41:15,440 Speaker 1: Martin achieve economic inclusion. And she said, everybody thinks they 725 00:41:15,520 --> 00:41:17,680 Speaker 1: killed him over I have a dream, But it wasn't 726 00:41:17,719 --> 00:41:19,880 Speaker 1: I have a dream. The speech that got him in 727 00:41:19,960 --> 00:41:25,200 Speaker 1: trouble was the other America. That's the speech that got 728 00:41:25,280 --> 00:41:28,960 Speaker 1: him killed, the Other America. The speech where he was 729 00:41:29,000 --> 00:41:32,920 Speaker 1: talking about economic inclusion, and he said, there are two America's. 730 00:41:33,680 --> 00:41:37,440 Speaker 1: One America has access to opportunity, education, capital, that's not 731 00:41:37,520 --> 00:41:41,879 Speaker 1: predatory mentorship. What does it matter if I can sit 732 00:41:42,400 --> 00:41:46,400 Speaker 1: at the same lunch counter as my white counterpart and 733 00:41:46,480 --> 00:41:51,160 Speaker 1: I cannot afford the same hamburger. There are two Americas, 734 00:41:51,200 --> 00:41:56,479 Speaker 1: and two America's will not survive. We need one America. 735 00:41:56,840 --> 00:41:59,879 Speaker 1: And so that was something and I said, I got 736 00:42:00,000 --> 00:42:04,080 Speaker 1: at it. I will deal with the fourth and final chapter, 737 00:42:04,640 --> 00:42:08,520 Speaker 1: economic inclusion. That is what I said told her. I said, 738 00:42:08,560 --> 00:42:11,200 Speaker 1: I'll deal with that. You're right. And they killed him 739 00:42:11,560 --> 00:42:14,480 Speaker 1: on the spot with the Poor People's March when he 740 00:42:14,560 --> 00:42:17,560 Speaker 1: was delivering half a million poor people to the nation's 741 00:42:17,640 --> 00:42:21,840 Speaker 1: capital and it was primarily poor white people, and they said, 742 00:42:21,880 --> 00:42:24,480 Speaker 1: this is too powerful to deal with. And here we are, 743 00:42:24,560 --> 00:42:28,920 Speaker 1: fifty years later, we don't have that economic inclusion, and 744 00:42:29,000 --> 00:42:32,399 Speaker 1: so that's why I did the lawsuits. And that's also 745 00:42:32,440 --> 00:42:37,040 Speaker 1: what I said to Tom Ruttlets, who runs Charter. I said, Tom, 746 00:42:37,200 --> 00:42:39,279 Speaker 1: Tom said to me, when you file these lawsuits to 747 00:42:39,320 --> 00:42:42,880 Speaker 1: take advantage of the merger, I said, when Charter was 748 00:42:42,920 --> 00:42:47,279 Speaker 1: trying to buy the process of I mean, you know, 749 00:42:47,480 --> 00:42:51,160 Speaker 1: just to be blunt, you have been accused of playing 750 00:42:51,160 --> 00:42:53,759 Speaker 1: a race card at a moment when a company like 751 00:42:53,880 --> 00:42:57,160 Speaker 1: Charter was vulnerable to gain carriage for your channels. That's 752 00:42:57,160 --> 00:43:00,799 Speaker 1: exactly that's what they're saying. Well stated. And I said 753 00:43:01,200 --> 00:43:03,319 Speaker 1: to Thomas, said, Tom, if you really want to know 754 00:43:03,400 --> 00:43:06,319 Speaker 1: the truth, I'll tell you the truth. I said, you 755 00:43:06,440 --> 00:43:08,840 Speaker 1: having eleven white guys on your board, no women and 756 00:43:08,880 --> 00:43:11,479 Speaker 1: people of color. I have an issue with that, I said, 757 00:43:11,520 --> 00:43:13,279 Speaker 1: but if you really want to look at the at 758 00:43:13,320 --> 00:43:17,720 Speaker 1: the time, Stamp, I didn't sue you until I saw 759 00:43:17,760 --> 00:43:21,400 Speaker 1: a photo of you in the newspaper with Al Sharpton 760 00:43:22,520 --> 00:43:25,319 Speaker 1: and you said that you would signed a memorandum of 761 00:43:25,400 --> 00:43:28,120 Speaker 1: understanding and m o U with Al Sharpton as to 762 00:43:28,200 --> 00:43:32,600 Speaker 1: how you will be handling black people. That is when 763 00:43:32,600 --> 00:43:36,440 Speaker 1: I sued you. After I saw that, And I said, Tom, 764 00:43:36,520 --> 00:43:40,800 Speaker 1: who is the white man that speaks for all white people, 765 00:43:42,760 --> 00:43:45,920 Speaker 1: and if that white man doesn't exist, why do you 766 00:43:46,000 --> 00:43:49,000 Speaker 1: think there's a black man that speaks for all black people. 767 00:43:49,480 --> 00:43:53,920 Speaker 1: The very idea of Al Sharpton, in my opinion, is racist, 768 00:43:54,360 --> 00:44:00,000 Speaker 1: which is why I named Al Sharpton in the lawsuits. Tom. 769 00:44:00,000 --> 00:44:03,960 Speaker 1: Black people speak for themselves. You need to treat us 770 00:44:04,080 --> 00:44:07,440 Speaker 1: as equals, not as these natives that have someone who 771 00:44:07,640 --> 00:44:10,880 Speaker 1: speak for them. That is why I suit you. We 772 00:44:11,000 --> 00:44:14,080 Speaker 1: have to change your behavior and get you to look 773 00:44:14,080 --> 00:44:16,840 Speaker 1: at us and deal with us as equals and not 774 00:44:17,000 --> 00:44:21,759 Speaker 1: someone that you feel superior to. Do you feel like 775 00:44:21,800 --> 00:44:26,360 Speaker 1: the federal courts is that there is a real avenue 776 00:44:26,520 --> 00:44:30,080 Speaker 1: for you to achieve the goals that you're trying to 777 00:44:30,120 --> 00:44:33,520 Speaker 1: achieve with these suits. Yeah, I do absolutely. I think that. 778 00:44:33,880 --> 00:44:36,680 Speaker 1: I think the Look, we already got our favorable ruling 779 00:44:36,719 --> 00:44:40,480 Speaker 1: against Charter. Judge wool and Federal Court Downtown ruled in 780 00:44:40,520 --> 00:44:43,759 Speaker 1: our favor seventeen page ruling that this lawsuit is to 781 00:44:43,800 --> 00:44:48,440 Speaker 1: go forward. They're uh, the Charter lawyers put on their 782 00:44:48,760 --> 00:44:53,640 Speaker 1: adult diapers and immediately filed for interlocutory appeal on the spot. 783 00:44:53,960 --> 00:44:55,760 Speaker 1: And that's how we ended up in the Ninth Circuit 784 00:44:55,960 --> 00:44:57,760 Speaker 1: and we're gonna go to the Ninth Circuit. We're gonna 785 00:44:57,760 --> 00:44:59,600 Speaker 1: win there, and then we're gonna go back to Federal Court. 786 00:44:59,640 --> 00:45:01,320 Speaker 1: We're gonna to win there, and then we're gonna go 787 00:45:01,360 --> 00:45:03,400 Speaker 1: to the Supreme Court and we're gonna win there. And 788 00:45:03,440 --> 00:45:05,799 Speaker 1: you know what's gonna happen. Then corporate America is going 789 00:45:05,840 --> 00:45:10,760 Speaker 1: to start doing business with all Americans, including African Americans 790 00:45:10,920 --> 00:45:14,200 Speaker 1: who have been the furthest left behind. See, this is 791 00:45:14,280 --> 00:45:18,839 Speaker 1: all a part of what I call economic genocide. When 792 00:45:18,880 --> 00:45:23,080 Speaker 1: you don't have access to a proper education and capital, 793 00:45:23,120 --> 00:45:25,920 Speaker 1: that's not predatory, but you have access to plenty a 794 00:45:26,000 --> 00:45:29,560 Speaker 1: plenty of guns, drugs and alcohol, you end up in 795 00:45:29,800 --> 00:45:33,680 Speaker 1: a war zone and you die from the drugs, the alcohol, 796 00:45:33,760 --> 00:45:37,560 Speaker 1: the hopelessness, and the violence. But this is what America 797 00:45:37,640 --> 00:45:40,200 Speaker 1: needs to do to go to the next level. We 798 00:45:40,280 --> 00:45:42,839 Speaker 1: are only three hundred and twenty seven million people out 799 00:45:42,840 --> 00:45:45,560 Speaker 1: of a global population of seven billion, were less than 800 00:45:45,640 --> 00:45:48,160 Speaker 1: five percent of the country. Half the women in this 801 00:45:48,280 --> 00:45:51,520 Speaker 1: country live at or below the poverty line. If the 802 00:45:51,560 --> 00:45:55,120 Speaker 1: women fail, so will the children. China has over two 803 00:45:55,200 --> 00:45:59,560 Speaker 1: hundred million kids in college. China has over two hundred 804 00:45:59,640 --> 00:46:03,840 Speaker 1: million kids in college. Two thirds of our nation is 805 00:46:03,880 --> 00:46:07,759 Speaker 1: in college, developing intellectual capital at a much faster rate 806 00:46:07,840 --> 00:46:12,800 Speaker 1: than we are. The women must succeed. We must position 807 00:46:12,960 --> 00:46:18,200 Speaker 1: every American to unleash their greatest potential. In order for 808 00:46:18,480 --> 00:46:23,200 Speaker 1: us to continue to compete on a global level, all 809 00:46:23,239 --> 00:46:27,760 Speaker 1: Americans must be positioned to succeed, to bring the A game, 810 00:46:28,160 --> 00:46:32,719 Speaker 1: to have a truly great America, a greater America. There 811 00:46:32,760 --> 00:46:35,720 Speaker 1: is no more. It doesn't work anymore to leave half 812 00:46:35,719 --> 00:46:39,839 Speaker 1: of us behind. We must position everyone to succeed, and 813 00:46:39,960 --> 00:46:47,359 Speaker 1: this these lawsuits start that process of economic conclusion and opportunity. 814 00:46:48,200 --> 00:46:50,919 Speaker 1: Thanks for listening. Be sure to join us next week 815 00:46:50,960 --> 00:46:53,080 Speaker 1: for another episode of Strictly Business.