Media Moguls with Web Barr The Ted Turner Saga | Part 9: MGM Nightmares
Jan 6, 2026
A high-stakes corporate gamble where a billionaire pivots from TV takeover to buying a Hollywood studio for its film library. Junk bonds, rushed due diligence, and complicated rights deals create a financing nightmare. Strategic maneuvers, asset carve-outs, and a debt-fueled restructuring put control and a media empire on the line.
02:40:24
Kerkorian's Two Week Phone Call That Changed Everything
- Ted got a surprise two-week offer from Kirk Kerkorian to buy MGM at $1.5–1.6 billion which forced an immediate strategic pivot.
- The call came as Ted was weighing a beaten bid for CBS, and he accepted Kerkorian's tight deadline instead of escalating the CBS fight.
Kerkorian The Asset Flipper Not A Studio Fanatic
- Kirk Kerkorian had little interest in movie production but repeatedly bought and sold studio assets to extract value, treating MGM as a financial asset rather than an operational passion.
- He kept MGM's profitable parts like casinos and home video, then reshaped MGM by buying United Artists and later selling pieces back to profit.
Owning 35 Percent Of Film History
- MGM UA controlled roughly 35% of all feature films ever made, an unmatched library that could power multiple networks and long-term monetization.
- The library included Gone With the Wind, Wizard of Oz, Citizen Kane, pre-1948 Warner titles, and Tom and Jerry cartoons, making it a content moat for Turner.
Get the Snipd Podcast app to discover more snips from this episode
Get the app 1 chevron_right 2 chevron_right 3 chevron_right 4 chevron_right 5 chevron_right 6 chevron_right 7 chevron_right 8 chevron_right 9 chevron_right 10 chevron_right 11 chevron_right 12 chevron_right 13 chevron_right 14 chevron_right 15 chevron_right 16 chevron_right 17 chevron_right 18 chevron_right 19 chevron_right 20 chevron_right 21 chevron_right 22 chevron_right 23 chevron_right 24 chevron_right 25 chevron_right 26 chevron_right 27 chevron_right 28 chevron_right 29 chevron_right 30 chevron_right 31 chevron_right 32 chevron_right
Intro
00:00 • 6min
Ted's Rubicon Choice
06:04 • 53sec
Who Is Kirk Kerkorian
06:57 • 2min
Kerkorian's Hands-Off Studio Strategy
08:43 • 2min
MGM's Valuable Film Library
10:14 • 3min
Early Talks Between Turner and Kerkorian
13:43 • 8min
Turner’s Strategy: Own the Supplier
21:52 • 4min
CBS Bid Fallout Reframes Options
26:09 • 5min
Kerkorian's Phone Call Offer
30:40 • 2min
Why $1.5 Billion Seemed Right
32:16 • 3min
What MGM Included for Turner
35:14 • 4min
Ted’s Thinking: Pay Premium for Strategic Value
39:43 • 6min
Deal Timeline and United Artists Carve-Out
45:45 • 8min
Ad break
54:06 • 30sec
Signing and Rapid Due Diligence
54:36 • 5min
Library Rights Complexity Revealed
59:14 • 5min
Turner Turns to Michael Milken
01:04:05 • 3min
Milken and the Junk Bond Revolution
01:07:21 • 7min
Milken's Thesis and Market Impact
01:13:53 • 12min
Milken as Dealmaker and Kingmaker
01:26:21 • 17min
Financing Problems Emerge
01:43:07 • 10min
Rainbow Pay TV Rights Crisis
01:52:56 • 4min
MGM Box Office Failures Hurt the Plan
01:56:31 • 2min
Deal Restructured: Preferred Stock Solution
01:58:53 • 3min
Preferred Shares Create Control Risk
02:02:02 • 5min
Closing and the Mounting Debt
02:07:15 • 5min
Selling Assets to Survive
02:12:37 • 3min
Kerkorian Rebuys MGM Assets
02:15:13 • 3min
Turner Keeps the Library
02:18:04 • 6min
Debt Pressure and Dilution Threats
02:24:29 • 11min
Ted Calls John Malone for Help
02:35:38 • 4min
Outro
02:40:05 • 14sec
#2076
• Mentioned in 21 episodes
The Gambler
Fyodor Dostoevsky
The novel, narrated by Alexei Ivanovich, revolves around his employment as a tutor for a Russian family in a German hotel and casino town.
Alexei is deeply in love with Polina, the General's stepdaughter, but his attempts to win her affection through gambling lead to a cycle of addiction and financial turmoil.
The story reflects Dostoevsky's own struggles with gambling and explores themes of love, debt, and the psychological effects of compulsive gambling.
The novel is known for its vivid descriptions of the casino environment and the psychological state of its characters.
#7796
• Mentioned in 6 episodes
Clash of Titans
Walter J. Boyne
#7961
• Mentioned in 6 episodes
Media Man
Ted Turner's Improbable Empire (Enterprise) (Enterprise)
Ken Auletta
#9534
• Mentioned in 5 episodes
Ted Turner speaks
Ted Turner
This compendium captures Ted Turner's commentary and reflections on his career as a pioneering media entrepreneur.
It brings together Turner's views on risk-taking, leadership, and the strategic use of technology like satellite distribution.
The book serves as both a memoir-like resource and a source of lessons for media operators and entrepreneurs.
Through Turner's own words, readers gain perspective on the mindset that drove major industry shifts, including cable expansion and 24-hour news.
The collection emphasizes Turner's contrarian strategies and willingness to challenge established institutions.
#1068
• Mentioned in 35 episodes
Confessions of an Advertising Man
David Ogilvy
First published in 1963, this book revolutionized the world of advertising and became a bible for the 1960s ad generation.
It covers topics such as how to manage an advertising agency, acquire and retain clients, build great campaigns, write potent copy, and navigate office politics.
The book is filled with Ogilvy's pioneering ideas, inspirational philosophy, and practical advice, making it an essential blueprint for good practice in business.
#1842
• Mentioned in 23 episodes
Call me Ted
Ted Turner
In 'Call Me Ted,' Ted Turner shares his life story, from his difficult childhood and the death of his teenage sister and father, to his rise as a media mogul with the creation of CNN and TBS. The book covers his business philosophy, his turbulent marriage life, including his marriage to Jane Fonda, and his various other ventures such as owning the Atlanta Braves and his sailing achievements.
Turner also discusses the disastrous merger of Time Warner with AOL and provides candid insights into his personal and professional life.
#5968
• Mentioned in 8 episodes
Up All Night
Ted Turner, CNN, and the Birth of 24-Hour News
Lisa Napoli
This book tells the story of how Ted Turner and a diverse group of cable television visionaries, rejects, and newcomers launched CNN in the summer of 1980 from the basement of an abandoned country club in Atlanta.
It mixes media history, business adventure, and character-driven storytelling to explain how CNN changed the way news was delivered and consumed, paving the way for the modern media landscape.
#10012
• Mentioned in 5 episodes
The Predators' Ball
The Inside Story of Drexel Burnham and the Rise of the Junk Bond Raiders
Connie Bruck
The Predators' Ball captures the essence of American business history in the 1980s, highlighting the role of Michael Milken at Drexel Burnham Lambert and the philosophy of greed that dominated Wall Street during that period.
The book explores the financial innovations and illegal activities that led to the downfall of Milken and Drexel Burnham Lambert, including insider trading and stock fraud charges.
#7112
• Mentioned in 7 episodes
Tinderbox
Mark Bernstein
#34402
• Mentioned in 2 episodes
Three blind mice
how the TV networks lost their way
Ken Auletta
Three Blind Mice: How the TV Networks Lost Their Way is a comprehensive examination of the television industry, particularly focusing on how the major TV networks lost their way.
The book, praised by critics such as Frank Stanton, former President of CBS, offers an in-depth look at the inner workings of the TV industry, highlighting the challenges and mistakes that led to the decline of the networks.
Auletta's reporting is characterized by his extraordinary access to key players, his keen eye for detail, and his ability to capture the essence of the industry's struggles.
#1737
• Mentioned in 25 episodes
Cable Cowboy
John Malone and the Rise of the Modern Cable Business
Mark Robichaux
This book is a penetrating portrait of John Malone's complex persona and a captivating history of the cable TV industry.
Written with Malone's unprecedented cooperation, it brings to life the story of how an unassuming copper strand evolved into the digital nervous system of the U.S.
, providing consumers with the fastest route to the Internet.
The narrative details Malone's transformation of TCI into a media colossus, his dealings with competitors and regulators, and his significant influence on the industry.
The book also explores the broader history of the cable industry, including its early days of providing access to broadcast signals in rural areas and its evolution into a high-speed electronic pipeline known as broadband.
#10154
• Mentioned in 5 episodes
Lead Follow or Get Out of the Way
Fernan Vargas
#31106
• Mentioned in 2 episodes
Triumph of the Yuppies
America, the 80s, and the Creation of an Unequal Nation
Tom McGrath
#5933
• Mentioned in 8 episodes
Me and Ted Against the World
Reese Schoenfeld
#28147
• Mentioned in 2 episodes
CNN The Inside Story
Hank Whittemore
#9808
• Mentioned in 5 episodes
It ain't as easy as it looks
Porter Bibb
Porter Bibb's biography examines Ted Turner's unconventional rise from regional broadcaster to media mogul, highlighting his business gambles and personality.
The book covers Turner's early ventures, his use of satellite technology, and the founding of Turner Broadcasting.
It blends narrative biography with insider anecdotes from Turner's career and the media industry's evolution in the latter 20th century.
Bibb explores the strategic decisions that shaped Turner's approach to programming, sports rights, and cable distribution.
The book places Turner's story within the broader context of the changing American media landscape of the 1970s and 1980s.
#23570
• Mentioned in 2 episodes
Masters of Enterprise
Giants of American Business from John Jacob Astor and J.P. Morgan to Bill Gates and Oprah Winfrey
Bill Saporito
Bill Saporito's 'Masters of Enterprise' profiles a range of influential American business figures across history, examining their leadership and innovations.
The book highlights how individual visionaries shaped industries from finance to technology and media.
Each profile connects personal ambition and strategy to larger economic and cultural shifts.
The collection provides lessons on entrepreneurship, risk-taking, and organizational leadership.
It offers historical context for understanding modern corporate empires and their societal influence.
In 1985, fresh off his failed bid for CBS, Ted Turner faced his own Rubicon moment. He could double down on a bigger, more cash-heavy hostile network takeover, or walk away and chase something even bigger and riskier. When billionaire dealmaker Kirk Kerkorian offered him MGM in a lightning-fast, all-cash deal, Ted pivoted to Hollywood, betting everything on the hidden value of film libraries and the future of cable. What followed was one of the riskiest acquisitions in media history, fueled by junk bonds, ambition, and instinct, and it would reshape Turner Broadcasting while nearly destroying it.
More From Hi Barr
Follow us on X + Instagram + YouTube + Linkedin
Sign up for our newsletter
Email us: contact@hibarrmedia.com
Listen to Hi Barr’s You Had To Be There podcast!
For business inquiries, please email: contact@hibarrmedia.com
Credits
Writing, research, and production by Web Barr.
Artwork by Dylan Lathrop.
Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).
Chapters
- (00:00): Ted's Rubicon Moment
- (06:48): Kirk Kerkorian + MGM
- (28:00): Why MGM
- (50:00): Kerkorian's Offer
- (1:06:00): Michael Milken 101
- (1:50:00): Inside the Deal
- (2:20:00): Debt Nightmares
Sources
Books used in Episode 9. Get em here!
- It Ain't As Easy As It Looks: Ted Turner's Amazing Story
- Up All Night: Ted Turner, CNN, and the Birth of 24-Hour News
- Ted Turner Speaks: Insights From the World's Greatest Maverick
- CNN: The Inside Story: How a Band of Mavericks Changed the Face of Television News
- Confessions of an Advertising Man
- Lead Follow or Get Out of the Way: The Story of Ted Turner
- Media Man: Ted Turner's Improbable Empire
- Clash of the Titans: How the Unbridled Ambition of Ted Turner and Rupert Murdoch Has Created Global Empires that Control What We Read & Watch Each Day
- Call Me Ted
- Cable Cowboy: John Malone and the rise of the modern cable-TV business
- Me and Ted Against the World: The Unauthorized Story of the Founding of CNN
- Tinderbox: HBO's Ruthless Pursuit of New Frontiers
- Masters of Enterprise: Giants of American Business from John Jacob Astor and J.P. Morgan to Bill Gates and Oprah Winfrey
- Triumph of the Yuppies
- Three Blind Mice
- The Predators’ Ball: The Inside Story of Drexel Burnham and the Rise of the Junk Bond Raiders
- The Gambler: How Penniless Dropout Kirk Kerkorian Became the Greatest Deal Maker in Capitalist History
Learn more about your ad choices. Visit megaphone.fm/adchoices