Company Town : Star Attraction : Bronfman Seems Bent on Making the Artists Happy

As Seagram Co. Chief Executive Edgar Bronfman Jr. installs new management at MCA Inc. and continues to cut deals, it’s becoming clear to a good number of Hollywood executives that he may have a role model in mind: the late Time Warner Chairman Steven J. Ross.

No one is quite saying that Bronfman is destined to fill the giant void in entertainment business left by the 1992 death of the charismatic Ross, who lavished attention on stars and who gained a remarkable degree of loyalty from them. But Bronfman’s early moves appear aimed at making stars and artists happy.

On Monday, Bronfman formally announced the hiring of Creative Artists Agency President Ron Meyer--who is well-liked by many Hollywood stars and has personally represented Tom Cruise, Whoopi Goldberg and Sylvester Stallone--as MCA’s new president and chief operating officer.

Separately, Bronfman also on Monday disclosed a deal for a New York-based record label with recently deposed Warner Music U.S. Chairman Doug Morris, who is popular among artists and their managers. The deals follow last month’s alliance with DreamWorks SKG, the studio being formed by director Steven Spielberg, former Walt Disney Studios Chairman Jeffrey Katzenberg and music mogul David Geffen.

(Late Monday, Bronfman issued a third major announcement: MCA Motion Picture Group Chairman Thomas Pollock will be named vice chairman at MCA, reporting directly to Bronfman. He will work on strategic matters for Bronfman and serve as something of a partner with Meyer. Casey Silver, head of Universal Pictures, will now report to Meyer, with no replacement for Pollock planned, sources said.)

In making those deals, and especially in hiring Meyer, Bronfman is trying to send a loud message that he wants stars and artists to consider MCA their first stop, and that he is emphasizing people skills over business wizardry.

“He wanted to make a statement about relationships and talent, and nobody is better at either than Ronnie,” said one MCA executive. “If you’re a star, he wants you to feel this is the place to be.”

Said Bronfman in an interview: “Hiring Ron is very consistent with the view I’ve had--and feel more strongly about now than before--to make MCA a home for talent, both managerial and artistic. I think Ron is the kind of person who can attract both kinds of talent to the company.”

Nonetheless, Meyer’s hiring came as a shock to Hollywood. It followed a little more than a week of quiet negotiations and was wrapped up early Sunday--in contrast to Bronfman’s talks with Meyer’s partner at CAA, Michael Ovitz, which were the subject of frenzied gossip and speculation for weeks. Some top MCA executives weren’t even told until Saturday, and some of Hollywood’s most plugged-in executives admitted they were caught completely off guard.

The naming of Meyer comes during a week of transition at MCA. Today, MCA’s 82-year-old chairman and chief executive, Lew Wasserman, will officially announce, as expected, that he is retiring from those jobs and taking on the honorary title of chairman emeritus. He will also join Seagram’s board of directors. Sidney J. Sheinberg, 60, the man Meyer is succeeding as president, will disclose his plans for a movie production company backed by MCA.

One of the more intriguing questions about the naming of Meyer as MCA president is what was left unsaid. Specifically, what, if anything, will Bronfman do about the position of chairman and chief executive?

Will he hire someone for the job, either as a partner with Meyer or even above him? Will he forget about filling the position, giving Meyer the autonomy to run the whole operation as president? Or will Bronfman, a hands-on executive, operate as something of a de facto chairman and CEO? Bronfman won’t take a formal MCA title himself, sources say.

People close to Bronfman say that he has no immediate plans to fill the chief executive spot--and may eventually choose not to fill it at all. But what is intriguing is that he wants to keep his options open should a talented executive become available.

Some in Hollywood viewed the decision to keep the post open as a sign that talks could be started anew with Ovitz. But sources close to the situation said there is no chance that will happen. Still another scenario being batted about is that Bronfman will leave the job open in case he can eventually lure Warner Bros. Chairman and Co-Chief Executive Terry Semel, also popular with stars, to MCA.

The odds of that happening are difficult to gauge. Semel is under contract to Warner, although he is known to have some sort of escape clause, the specifics of which are unknown. Semel has previously sought to quash speculation that he might go to MCA, noting that he has a contract with Warner Bros. And some Hollywood executives argue that hiring Meyer makes a Semel hiring moot.

Meyer will oversee all aspects of MCA--not just film and television operations, as some speculated. Heads of major divisions--television, movies, theme parks, books and music--will all report to him. His minority stake in CAA, estimated to be in the neighborhood of 25%, is expected to be bought back by CAA.

Those who look at Bronfman and see a young Ross note that there are some interesting similarities. Both, for example, started in entertainment as outsiders. Ross became established in business with mortuaries and parking lots before moving on to more glamorous fare.

Before buying 80% of MCA for $5.7 billion last month, Bronfman ran a company best known for such products as whiskey, orange juice and cognac.

Still, they note, it’s a long way from being a good deal maker to becoming a legend.

* MR. NICE GUY

Ron Meyer is regarded as a gentleman in a cutthroat world. A1