Entertainment Executive Named to Run Century 21 : Real estate: Six Flags CEO also becomes investor in surprise move by O.C. franchiser's new owner.

By JOHN O’DELL

Aug. 2, 1995 12 AM PT

TIMES STAFF WRITER

IRVINE —

In an unexpected move Tuesday, the new owner of Century 21 Real Estate Corp. said it has taken on a co-investor who will become chief executive of the Irvine-based international residential real estate business.

Hospitality Franchise Systems Inc., a New Jersey hotel franchiser, completed its acquisition of Century 21 for $200 million in cash and stock Tuesday and immediately announced that it had sold a stake in the real estate company to entertainment executive Robert W. Pittman.

Pittman, 41, is chief executive of Time Warner Enterprises, a subsidiary of Time Warner Inc., and of its Six Flags Entertainment unit. He will take over as head of Century 21 on Nov. 1.

He will replace 63-year-old Richard J. Loughlin, Century 21’s president and chief executive since 1981. Loughlin, a 22-year veteran of the real estate franchising operation, will become president emeritus under a two-year contract.

Pittman said Tuesday that his Pittman Holdings Partnership paid cash for a 10% to 15% stake in Century 21. He would not discuss details of the private purchase. Hospitality and Pittman acquired the real estate company from Metropolitan Life Insurance Co. of New York.

Pittman, who started in business as a 15-year-old part-time radio disc jockey in his native Mississippi, said he intends to use his background in marketing and brand name exploitation to move Century 21 into a new era of real estate franchise sales.

The jump from entertainment to real estate, Pittman said Tuesday, is not a long one. “I went from running six cable networks to Six Flags and people thought that was a big leap,” he said. “But the commonality was marketing and big brand names. Century 21 is a big consumer company and its greatest asset is the value of its brand name. I understand how to use and expand that.”

While declining to offer specifics, Pittman said he sees a future in which a large chain such as Century 21 can provide franchises with “one-stop shopping” services where home sellers and buyers can get financing, title insurance and other real estate services. Companies providing these services would pay Century 21 for access to its 6,000 offices.

Pittman joined the Warner organization in 1979 to develop the Movie Channel. He is credited with creating the MTV music video channel, and in 1983 became chief operating officer of MTV Networks. He was appointed chief executive of the multichannel network in 1985. Pittman was also executive adviser to former Warner Communications Chairman Steve Ross during the 1990 merger of Warner and Time Inc.

Pittman and two longtime associates at MTV and Six Flags formed Pittman Holdings Partnership in June after Time Warner sold a 51% stake in Six Flags. Pittman Holdings began its talks with Hospitality Franchise Systems Inc. in July, said Pittman, a member of the hotel company’s board of directors.

His partners, Mark S. Mitzner and Mayo S. Stuntz Jr., will join Century 21 as executive vice presidents.

Loughlin, who will be leaving the daily operation of a company that he has built and guided through two prior ownerships, said he began discussing the changes with Pittman last week. He said he will serve as adviser and consultant to the company for two years and will also be a spokesman for the company at franchisee meetings and other events.

“I have been looking for an opportunity to cut back for some time,” Loughlin said.

(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)

Profile: Robert W. Pittman

Age: 41

Current position: President-CEO of Time Warner Enterprises and chairman-CEO of Six Flags Entertainment

Future position: Managing partner-CEO, Century 21 Real Estate (effective Nov. 1)

Background: Developed MTV, Court TV, VH-1 and Nick at Night

Honors: Performance Magazine “Innovator of the Year”; White House Conference on Small Business Award for Entrepreneurial Excellence; Life Magazine’s “Five Original Thinkers of the ‘80s”; Advertising Age’s “50 Pioneers and Visionaries of TV”

First job: Part-time radio disc jockey

Activities: Serves on the boards of 3DO, Hospitality Franchise Systems, New York City Ballet; chairman of the New York Shakespeare Festival, 1987-1994

Attitude: “When I first went to Six Flags, people asked me, ‘What’s going on? You don’t know anything about theme parks.’

I know how to take branded products and grow them. . . . I see the real opportunity to growing the Century 21 brand.”

Source: Hospitality Franchise Systems

New Combination

Here’s a look at the two companies involved in the Century 21 acquisition:

CENTURY 21 REAL ESTATE

* Business: Residential real estate broker

* Headquarters: Irvine

* Employees: More than 60,000

* Offices: 6,000 worldwide

* 1994 revenue: $130 million

HOSPITALITY FRANCHISE SYSTEMS