Michael Ovitz Net Worth - Pulptastic

Publish date: 2024-06-04

What is Michael Ovitz’s Net Worth and Salary?

Michael Ovitz, with a net worth of $500 million, co-founded Creative Artists Agency (CAA) in 1975 and served as its managing partner and chairman until 1995. He was known for overseeing the careers of Hollywood stars like Tom Cruise, Dustin Hoffman, Bill Murray, and Barbra Streisand.

During his peak, Ovitz was the most powerful person in Hollywood. In 1995, he left CAA for a brief but extremely lucrative stint at Disney, which became legendary in its own right.

Michael Ovitz: Early Life and Career

Michael Ovitz was born on December 14, 1946, in Chicago, Illinois. He grew up in Encino, California. After attending UCLA, he worked part-time as a tour guide at Universal Studios. Ovitz then got a job in the mail room at the William Morris Agency.

In 1975, Ovitz and four colleagues from William Morris, Ron Meyer, Bill Haber, Rowland Perkins, and Mike Rosenfeld, founded Creative Artists Agency (CAA).

Michael Ovitz and the Rise of CAA

Michael Ovitz, along with three colleagues, founded Creative Artists Agency (CAA) in 1975 with $21,000 borrowed from a bank. They started out in a small office with rented furniture and their wives took turns as receptionist. Under Ovitz’s leadership, CAA quickly became the world’s leading talent agency, expanding from television to film, investment banking, and advertising.

Ovitz was famous for his “package deals,” in which CAA utilized its talent base to provide directors, actors, and screenwriters to a studio, giving negotiating leverage to the talent. He served as talent agent to Hollywood heavyweights such as Tom Cruise, Dustin Hoffman, and Barbra Streisand, as well as directors Steven Spielberg and Sydney Pollack.

Additionally, Ovitz provided corporate consulting services and helped negotiate major international business mergers and deals. He famously negotiated David Letterman’s move from NBC to CBS, chronicled in Bill Carter’s book “The Late Shift: Letterman, Leno and the Network Battle for the Night.”

Ovitz now acts as a private investor, informally advising the careers of notable figures such as Martin Scorsese, David Letterman, and Tom Clancy.

Mike’s Failed Attempt at Becoming Head of MCA

Mike had been yearning for a job in entertainment that was as cushy as the ones held by studio heads like Terry Semel. He observed that his contemporaries were earning hundreds of millions of dollars from stock options, while his private partnership offered no light at the end of the tunnel.

Mike had hoped to become the head of studio MCA, which had recently been acquired by Edgar Bronfman Jr. He requested 5% of MCA stock to take on the role, but the Bronfmans rejected the offer and hired Mike’s CAA co-founder Ron Meyer for the job instead. The rejection marked the end of Mike’s relationship with the Bronfmans, but Meyer went on to run MCA for more than two decades.

Ovitz Leaves CAA for Disney, Frustrated by Lack of CEO Role

In 1995, Michael Ovitz officially left Creative Artists Agency (CAA) to become the second-in-command at Disney. He had hoped to eventually take over as CEO from Michael Eisner, who was dealing with health issues at the time. However, Eisner did not relinquish his position in any significant way, leaving Ovitz feeling frustrated and disappointed. As part of his departure from CAA, Ovitz gave up $200 million in guaranteed future fees. Eisner offered him a no-fault golden parachute to entice him to join Disney, meaning that he would be compensated if the position did not work out.

Michael Ovitz’s Departure from Disney and Parting Gift

Michael Ovitz left Disney after just over a year, but not before receiving a parting gift of $138 million ($38 million in cash and $100 million in stock). This payout sparked a lawsuit from Disney shareholders who claimed that Eisner and the Disney board agreed to an excessively large package. However, the lawsuit was ultimately unsuccessful.

If Ovitz still retains his original $100 million worth of shares from 1995, they are likely worth over $800 million today. However, he is not listed in corporate filings as a significant shareholder at present.

Michael Ovitz: Investor, Philanthropist, and Art Collector

Michael Ovitz currently serves as a private investor, offering informal advice to notable figures in the entertainment industry such as Martin Scorsese, David Letterman, and Tom Clancy.

Aside from his business ventures, Ovitz is also an active investor and philanthropist. In 1999, he generously donated $25 million to UCLA’s medical center.

Ovitz is also a renowned art collector, with a collection that boasts works by some of the most famous artists of our time, including Jasper Johns, Pablo Picasso, Mark Rothko, and Willem de Kooning. His collection is estimated to be worth tens of millions, or even surpassing $100 million.

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