"Have you figured out the specifics yet?"
"Did Time Warner really surrender?"
Evening of August 23, 2005.
New York.
The lights were blazing in the chairman's office of News Corporation.
A rapid knock at the door made Rupert Murdoch shout "Come in."
When he saw that it was his secretary, the 74-year-old man instantly burst with a vitality usually reserved for the young. He had been leaning back on the sofa, but suddenly straightened up and asked loudly, "Is Time Warner really preparing to accept Carl Icahn's proposal?"
"Is the statement Time Warner released serious?"
"They're willing to push up the stock price through share buybacks?"
"Even if they don't have enough cash, they're willing to raise everything by selling company assets?"
The barrage of questions came like raindrops in a storm, pounding the secretary so hard his face felt sore.
Jogging in, chest heaving, he nodded forcefully while gasping for air. "Mr. Murdoch, I've confirmed it with multiple parties. These messages were released by Time Warner themselves."
"And according to someone who used to work for us and then jumped to Time Warner, their management team immediately held a conference call after receiving Carl Icahn's 'Save Time Warner' proposal."
"Because the meeting was confidential, I couldn't find out exactly what they discussed. But one thing is certain: many Time Warner executives are very dissatisfied with the current stock price."
"Or rather—"
"Those executives also seem dissatisfied with Time Warner's current business structure and market segments."
"So they want to actively embrace Carl Icahn."
"?????"
"What the hell?????"
Rupert Murdoch was completely stunned!!!
Because the way things were developing was far beyond his expectations!!!
In his prior judgment, his thinking was actually the same as Roy E. Disney's—
Carl Icahn was a suspicious, cautious person by nature. Someone like that wouldn't rashly attack Time Warner!
Especially when Time Warner's chairman was still a member of the Rockefeller family!
So in Murdoch's eyes, Icahn's move against Time Warner had to be driven by external factors. And once Icahn drew his sword and pointed the attack directly at Time Warner's management, the external forces pushing him were very likely Ted Turner and Steve Case!
And if Ted Turner and Steve Case were colluding with Carl Icahn to carve up Time Warner, then it would be perfectly normal for Time Warner's management to fight back fiercely and refuse!
Uh—
This logic should be easy to understand, right?
It's like a five-branch family where the eldest and second eldest want to fight over the inheritance, but the third, fourth, and fifth refuse their distribution plan. So the eldest two directly bring in local gang forces to back them up.
In that situation, the eldest and second only get the maximum benefit if they kill off the third, fourth, and fifth.
Because gang backing costs money.
If the eldest two only hired outside help to reclaim what was rightfully theirs, that would be a losing deal.
They have to kill one person.
Take over one extra branch of the inheritance.
Only then can they avoid a loss and even profit.
And since they've already killed someone, why not kill everyone?
Moreover, if they kill only one, no matter whether it's the third, fourth, or fifth, it would feel unfair. Only by killing all of them can they achieve the greatest "fairness" for themselves!
And once the third, fourth, and fifth know that the eldest two want to kill them, shouldn't their best move be to fight back?
At that point, it's either stand and live or stand and die.
There's no third option!
But what about Time Warner right now?
They surren—surrendered?
Oh my God.
Seriously.
At this moment,
Rupert Murdoch truly could not understand Time Warner's way of thinking.
In his eyes, Time Warner had chosen to kneel and die instead of standing to live or standing to die!
What kind of freakish choice is that?!
Like Rupert Murdoch, another person shocked by Time Warner was Edgar Bronfman Jr. At this moment, he was leaning back in the chairman's office at EMI's headquarters, scratching his head in confusion.
Yes, he had already bought EMI.
He was currently pondering how to turn EMI into the world's largest music group.
But after seeing Time Warner's public statement, he threw all those dreams aside.
The reason was simple:
First, he had previously gone head-to-head with Barry Meyer and others.
Earlier, when he wanted to buy Warner Music from Barry Meyer and his people, they had been desperately unwilling. But now, when Carl Icahn said he wanted to dismantle them, they agreed immediately?
What the hell is this?
Is Carl Icahn more vicious than him?
Or does he just have a face that's easy to bully?
Second, within the Bronfman family, he wasn't the only one of the new generation.
He had many brothers and sisters.
Back then, when fighting over the inheritance of the family business, they had battled extremely fiercely. Thirty years ago, the kidnapping case that shocked all of America was even one of those ugly incidents caused by the siblings fighting over wealth.
However wealthy he was today, his siblings were just as miserable.
So when Edgar Bronfman Jr. knew that one person's rise meant the deaths of countless others, and Time Warner directly voted yes in the face of Carl Icahn's attack—
"How is that any different from sticking their necks out for Ted Turner and Steve Case to chop off?"
"Mother—!"
"What kind of operation is this?!"
When even a wastrel like Edgar Bronfman Jr. couldn't make sense of it, then others—Roy E. Disney, Sumner Redstone, Jeff Immelt, even Michael Eisner—were equally baffled. They truly had no idea what kind of bizarre tactic Time Warner was playing.
Even more confused, in fact, were Ted Turner and Steve Case.
In their eyes, the situation looked like this:
Two armies facing off in a siege. Just as the attacking side finished shouting their challenge and hadn't even begun deploying troops, the city gates were already wide open. The lord of the city even climbed onto the walls personally to invite them in for a chat.
Anyone who has read books knows this could be a trap, a Hongmen Banquet.
As for those who haven't read—
Well, at a moment like this, the uneducated don't even get a seat at the table.
Precisely because everyone understood the game, Time Warner's thumbs-up to Carl Icahn looked, to Ted Turner and Steve Case, like proof that Time Warner was plotting something huge.
As for what that plot was—
"Do you have any ideas?"
August 24, 2005.
Ted Turner hosted a banquet at his Atlanta estate for the brothers who had once fought alongside him.
Many of them were senior executives from Turner Broadcasting.
They understood their boss's feud with Time Warner, and they had no option to defect.
So at this moment, communication flowed smoothly.
"No," said an old man about the same age as Ted Turner, shaking his head. "Time Warner's behavior this time is too bizarre. It doesn't follow normal logic at all, so we can't make an effective judgment based on it."
"Exactly," said a slightly younger man beside him, nodding. "Not only that, after realizing how strange their actions were, we tried to find out their real motives. And—there's been absolutely no internal gossip within the group."
"That's very strange."
"Right," echoed an even younger man. "Although our people aren't inside their management, let's put it this way: when we owned CNN, we didn't think there was anything in this world we couldn't find out."
"But this time—"
"We really heard nothing at all."
Media moguls are basically among the best-informed people in the world.
To put it more bluntly—
No one in media avoids wiretapping, surveillance, bribery, or turning insiders.
So when even the pros in the intelligence game said they couldn't dig up anything, Ted Turner went numb on the spot.
As he put on a mask of pain, someone beside him said, "Ted, although we don't know why Time Warner agreed to Carl Icahn's plan, I think one thing is clear: whatever the enemy wants to do, we absolutely must not do it."
"Now Time Warner wants to meet Carl Icahn?"
"Then we absolutely must not let them meet!"
"I agree!"
Before the words even finished, someone at the table chimed in. "Ted, I also think you should stop Carl Icahn from meeting Time Warner. Right now, the most favorable move for you is to urge Icahn to speed up the attack and force Time Warner to convene an extraordinary shareholders' meeting and replace everyone on the board!"
"No matter what Time Warner wants to say, you can't let Carl Icahn hear it!"
"Otherwise—"
"Things could easily go wrong!"
Ted Turner understood what they meant.
Carl Icahn was just a businessman.
He attacked companies to make money.
So if Time Warner knew the rules and satisfied his interests—
Sigh, hadn't many of his past attacks failed because the target companies chose to pay up to avoid disaster?
If every company he targeted didn't drop gold coins, where would that terrifying 30% annualized return come from?
Right?
Carl Icahn could choose to take the money and leave, but Ted Turner couldn't.
Because he had already officially swung his fist at the Ross family. If he couldn't completely drive them out of Time Warner this time, he'd be the one packing his bags and getting kicked out.
Thinking of that—
"Damn!"
An irritated Ted Turner clenched his teeth and slapped the armrest.
At the same time, Steve Case was thinking the same thing.
After consulting with his think tank, even though he still couldn't figure out Time Warner's intentions, he decided that no matter what scheme Time Warner was plotting, he had to stop Carl Icahn from meeting them.
But unfortunately—
"What?"
"Why?"
"Why should I refuse to meet Time Warner?"
Evening of August 24, 2005.
In the conference call organized by Ted Turner and Steve Case, Carl Icahn exclaimed in surprise, "Gentlemen, forgive me for being blunt, but is there something wrong with you?"
"If earlier you were anxious and suspected that I leaked the information about attacking Time Warner, okay, I can understand that. For you, attacking Time Warner is extremely important."
"There can't be the slightest mistake."
"But now?"
"We've launched the attack, and then you're stopping me from confronting the other side?"
"Oh—please—I'm seriously starting to suspect that you two have persecution delusions."
"Because if you study my past attacks on other companies, you'll find that after I issue a challenge, there's a very high probability that the company's leadership will want to meet with me."
"Because they want to protect their own positions."
"And I need to meet with them as well."
"Because I need to feel out their bottom line, so I can maximize my gains."
"So! Tell me!"
"Are you trying to stop me from making more money?"
"Is that it?"
The cold, hard logic left Ted Turner and Steve Case speechless.
At this moment, they wanted to emphasize something.
They wanted to argue back.
But when the words reached their lips, nothing came out.
In the end, still holding onto hope that the attack on Time Warner could succeed, the two chose to back down.
Ted Turner said, "Carl, you should understand that we have no intention of obstructing you."
"Uh—"
"How about this."
"You set a time, and then we all go together. Okay?"
"Okay." Carl Icahn curled the corner of his mouth.
He understood what Ted Turner meant and said, almost condescendingly, "Although you've repeatedly questioned me, I'll still tell Time Warner this: if they really want to meet me, then everyone on the board has to come."
"If even one person is missing, I won't meet them."
"Mm-hmm? That works now, right?"
"Oh—thank you—"
On the other end of the line, Ted Turner and Steve Case let out a sigh of relief.
Because they were still members of Time Warner's board, as long as Carl Icahn firmly demanded to meet only with the full board, the two of them would definitely be able to attend.
And then—
They'd be able to hear every word exchanged between Carl Icahn and Time Warner.
What they feared most right now was Carl Icahn privately talking with a small faction inside Time Warner.
And they weren't the only ones.
On August 25, 2005, Carl Icahn publicly responded to Time Warner's invitation—
"Time Warner's development direction is a huge and complex issue. So if Time Warner truly intends to talk with me, I hope to see all of Time Warner's directors at the meeting."
In response—
On August 26, 2005, Time Warner spoke again: "We thank Mr. Carl Icahn for his attention to our company."
"Our chairman is actively communicating with all directors. Once everyone's schedules are aligned, we will contact Mr. Carl Icahn immediately. We ask for his patience."
After this news appeared—
On August 27, 2005, the foundation under the Icahn's name held an emergency press conference.
The spokesperson gave high praise to Time Warner's behavior and attitude.
And stated that Carl Icahn was very much looking forward to good news.
Frankly speaking, once things reached this stage, anyone with even a bit of trading experience had no idea what Time Warner was trying to do.
Because since the birth of financial raids, Time Warner was the company that treated the raider with the most respect.
Those in the know understood that Carl Icahn was basically a bandit.
Those who didn't know, after seeing Time Warner's behavior, would straight-up think this guy was some incredible professional manager.
So—
"What the hell is Time Warner thinking?"
This was the most baffling question among Wall Street veterans in August 2005.
But their confusion didn't last long.
As soon as September arrived, Time Warner reached an agreement with Carl Icahn and scheduled a formal meeting for September 10, 2005.
The location: Time Warner's New York headquarters.
When this news came out, with a sharp "snap," people across media, finance, entertainment, and every other field all turned their eyes to that day.
Everyone wanted to know what kind of fart Time Warner was holding in its belly.
And that—
September 10, 2005, was a Saturday.
That day, it was lightly raining in New York.
But that didn't matter, because Carl Icahn's personal company office was less than a ten-minute walk from Time Warner's headquarters. So at 10 a.m., the 69-year-old appeared on time before everyone.
He smiled and nodded at the reporters camping at the entrance.
Under the guidance of Time Warner staff, he went straight to the top floor.
The moment he stepped into the conference room, he saw four figures who had already arrived:
Time Warner's current chairman, Richard Parsons, a servant of the Rockefeller family;
His deputy, Time Warner's current CEO Jeffrey Bewkes, formerly a subordinate of Barry Meyer;
Ted Turner and Steve Case.
As for the others?
They were all hanging on the wall.
Yes.
Time Warner's directors were very busy.
Not everyone had time to watch the Ross family and Ted Turner play out their boring internal power struggle.
Being able to spare time for a video conference was already a gesture of respect.
Mm.
At this moment.
Anyone normal would know this wasn't normal, right?
But Carl Icahn didn't care.
Smiling, he shook hands with Richard Parsons and the others, greeted the ten familiar faces on the wall one by one, exchanged pleasantries, then leaned back in his chair and wasted no time stating the purpose everyone already knew—
"I want to break you up."
"And then have you buy back shares."
"And I hear you have no objections, just some funding issues?"
"If that's the case, then I think we can discuss specific plans today."
"For example, which businesses I'd suggest you sell, and then use that money to buy back stock."
As soon as he said this, the large conference room fell into silence.
The ten directors on the wall said nothing, because they knew they were just there to watch.
Watch what, exactly?
"Yes, Carl, we do think your plan is quite good. Or rather, we also believe Time Warner's stock is undervalued, so we want to find ways to push up the share price."
After a brief pause, seeing no one else speak, Richard Parsons took over.
Carl Icahn nodded slightly. "Then—do you want to present the plan, or should I?"
The moment those words fell, Ted Turner and Steve Case's hearts jumped.
They hadn't expected the meeting to move this fast.
Just as they were hoping Richard Parsons would let Carl Icahn present the plan, because only that would prove Time Warner was embracing Icahn merely so the Rockefeller family could cash out and exit—
"I'll speak."
Time Warner CEO Jeffrey Bewkes suddenly opened his mouth.
Ted Turner and Steve Case instantly turned their heads, eyes wide.
Under their gaze, Jeffrey Bewkes smiled. "Back then, Warner opposed AOL's acquisition of Time Warner. So now, Mr. Carl Icahn, your appearance makes me very happy—"
"Oh? Is that so? Then go ahead and share your thoughts."
Despite Ted Turner and Steve Case's dramatic reactions, Carl Icahn ignored them, smiling warmly at Jeffrey Bewkes.
Jeffrey Bewkes nodded with a smile, and the next second—
"After I formally became Time Warner's CEO, I received quite a few acquisition offers related to AOL. And the vast majority of companies believe AOL is still worth $20 billion."
"Take Google's offer from a few days ago. Google wanted to buy 5% of AOL for $1 billion. If Google is willing to offer that price, I believe a $20 billion valuation for AOL is fair."
"In that case, my idea is to sell AOL. Even if the final transaction is a mix of stock and cash, assuming the usual 25% cash portion, we can still immediately raise $5 billion in cash."
"Then, within a week of receiving that cash, we can start buying back Time Warner shares. As for the remaining $15 billion buyback target, I plan to act after clearing the stock received in the transaction. Of course, I can also promise that if I'm running it, the buyback plan will be completed no later than 2007."
"Mr. Carl Icahn, what do you think of this plan?"
Boom—
Before Carl Icahn could even speak, Ted Turner and Steve Case felt like the sky had fallen.
Because this plan was perfect.
Because this plan was exactly what they had discussed before!
That's right.
Ted Turner and the others had also wanted to trade with Carl Icahn using the same approach Jeffrey Bewkes just described.
So when Warner's people had the exact same idea—
"I think this plan is great!" Carl Icahn burst out laughing. "So why don't you just do it directly?"
"Is it because the people who like AOL are hard to deal with?"
"If that's the case, I can help you!"
"Tell me, who likes AOL? Yahoo? Microsoft? Or someone else?"
"Whether it's Jerry Yang or Bill Gates, I have ways to convince them to put up $20 billion!"
"Oh~~~ that really is wonderful~~~" Jeffrey Bewkes started clapping.
Like he'd found a kindred spirit, even the corners of the 53-year-old's eyes wrinkled with his smile.
"As you said, Yahoo and Microsoft are both potential buyers for AOL, and of course Google as well. But right now, the thing troubling me most isn't that. It's the stock buyback."
"The buyback? Isn't that something you just do directly? What problem could there be?"
Seemingly thinking the deal was about to close, Carl Icahn's face was full of excitement.
His question made Ted Turner and Steve Case's pupils constrict sharply.
In that instant, both of them sensed something ominous.
And in fact—
They were right.
Facing Carl Icahn's question, Jeffrey Bewkes said bluntly, "Because I don't want to buy back shares on the open market. I want to do a targeted buyback of Time Warner shares from Ted Turner and Steve Case—"
"JEFFREY BEWKES!!! ARE YOU FUCKING KIDDING ME???"
Before Jeffrey Bewkes could finish, Steve Case shot to his feet.
Eyes bulging, ears practically upright, he roared, "I know the Ross family behind you wants to kick us out of the company!"
"But with the shares you have, you're not qualified to talk about a targeted buyback—"
"I agree."
Although Steve Case was shouting, at that moment, the light, almost casual voice of agreement carried enormous weight.
Because—
Steve Case slowly turned his head.
Followed the sound.
The person agreeing was Time Warner's chairman, Richard Parsons.
"The Rockefeller family is actually standing on the Ross family's side???"
Steve Case could hardly believe his ears.
But before he could even process the shock, another voice of agreement appeared—
"I think your idea is fine."
"Steve Case is originally the founder of AOL. If we're selling AOL, then why should someone with nothing to do with Time Warner anymore stay at Time Warner? As for Ted Turner—"
"He was the one who strongly supported AOL's acquisition of Time Warner back then, wasn't he?"
"If his judgment was that flawed, then it's only right for him to leave the company."
Boom.
At that moment, Steve Case felt like his head exploded.
Because he knew that voice all too well.
It was—
"Carl Icahn!"
"You really do have a problem!"
Steve Case spun around in fury, glaring at Carl Icahn.
As for Carl Icahn—
He shrugged, spread his hands, and smiled like a sly fox. "Steve Case, if I remember correctly, you were born in 1958?"
"That makes you 47 this year, right?"
"So maybe try being a little more mature."
"What do you mean I really have a problem?"
"You can't just talk nonsense like that—"