Media Conglomerate Has Its Hits and Misses

MCA Inc. is one of the world’s largest media and entertainment concerns, and is home to Universal Pictures, Universal Studios theme parks and the MCA Music Group.

It was acquired for $6.59 billion in late 1990 by the world’s largest consumer electronics conglomerate, Matsushita Electric Industrial Co. of Japan. Company executives predicted that the deal would fuse creative know-how with financial power.

But the acquisition so far has received mixed appraisals. Matsushita is still trying to pay down the considerable debt it took on in the MCA buyout, and the Japanese concern has reportedly been somewhat disappointed with the investment. There have been clashes between the managements of the two companies.

Most notably, since the acquisition MCA’s Universal Pictures has failed to produce a steady stream of box office winners, much less a repeat of its “E. T., the Extraterrestrial,” the top-grossing film of all time. Last year’s “Far and Away” with Tom Cruise proved a disappointment, although the studio had some success with “Sneakers” and “Scent of a Woman,” which won Al Pacino a best actor Oscar. Also, Universal’s “Cop and a Half” with Burt Reynolds is now No. 3 at the box office.

Universal now has high hopes for its upcoming Steven Spielberg-directed “Jurassic Park,” a big-budget tale of genetically engineered dinosaurs run amok. The company is also betting that it will reap a windfall from dinosaur-inspired merchandise.

A success with “Jurassic Park” would also help Matsushita recover from its involvement in an embarrassing loan scandal in Japan and lingering sales slump, which brought about the resignation of its president in February. In the three months that ended Dec. 31, Matsushita--best known in the United States for its Panasonic, Technics and Quasar brand names--posted a 60% drop in profits to $429 million.

MCA’s Music Entertainment Group has several major record labels, including MCA Records and Geffen. Among the artists in its stable are Wynonna Judd, Guns N’ Roses and Nirvana.

But the music group also has not been without its troubles. In February MCA Records sued former Lt. Gov. Mike Curb and his Curb Music Co., asking a Los Angeles court to clarify contractual details of a joint venture.

Last month, Curb countersued, asking for $30 million in damages, alleging MCA failed to keep up its end of the contract.

The company’s Universal Studios theme parks in Orlando, Fla., and at Universal City are the nation’s third and fourth biggest theme parks, respectively, behind Walt Disney Co.’s attractions in Florida and California.

That division has also been touched by scandal. In December, a former employee filed a $10-million lawsuit, contending that Universal Studios management “tolerated and fostered” sexual harassment of female employees at the Universal City theme park for nearly a decade.