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- [00:00]
Oprah Winfrey
Want to get more from business movers?
- [00:02]
Jeff Jacobs
Subscribe to Wondery plus for early access to new episodes, ad free listening and exclusive content you can't find anywhere else. Join Wondery plus in the Wondery app or on Apple Podcasts.
- [00:29]
Oprah Winfrey
It's September 8, 1986, at a television studio in Chicago, Illinois. Entertainment lawyer Jeff Jacobs makes his way through the bustling backstage area, a large bunch of flowers clutched in his hand. The television crew packs up equipment and cleans up around him. The day's taping is complete, and the first nationally syndicated episode of the Oprah Winfrey show is in the can. Jeff has been Oprah Winfrey's agent since 1984, and thanks to his deal making, Oprah's on course to earn more than $10 million this year. But Jeff is convinced that she is barely scraping the surface of her potential. He wends his way through the hallways of the studio until he emerges onto the set of the Oprah Winfrey Show. Sitting alone in one of the audience's chairs is the woman of the hour, Jeff. Oprah. Congratulations. Jeff hands her the flowers. These are for you. Oh, thank you. They're beautiful. Did you watch? Of course I watched. It was wonderful. You were wonderful. I can't tell you how many calls I've had just raving about you. Everyone loved it. You think so? I know so. You have to say that. But I do think it went pretty great. Thank you for the flowers. I'll get someone to put these in water in my dressing room. Hey, let's just sit for a while, okay? Jeff takes a seat next to her. You know, I've always wanted to be in one of your audiences. You make it look like it's fun. Well, it's the entertainment business, right? Yeah. But you know, I didn't come here just to congratulate you. I mean, that's the main reason, obviously, and again, congrats. But it's not the only reason. Because you're right. You're in the entertainment business, but with a stress on business. I know what you're going to say. You want me to start my own production company. Yeah. We've had this conversation before, several times. But the timing couldn't be better. Now, with the show going national, now is the time to make your play. Because as long as you're not the boss, you'll always just be talent. And if that's the case, hell, you might as well just be a writer. A well paid writer. A very well paid writer, but still a hired hand. Oprah falls silent. Her eyes drift to the back of the set where her name is embossed in large letters. You know, I like that. What? Your name up in lights. Oprah nods. Okay. All right. Well, what do you think of Harpo Productions? Harpo is Oprah backwards, and it's already the name of the company she uses for tax purposes. But now Oprah wants to use it for something far larger. And Jeff smiles. Harpo Productions. Yes. I like that. We can use the same name, right? Oh, we sure can. All right. Harpo Productions. Yeah. Yeah. Jeff stretches out his hand for her to shake. Well, Ms. Winfrey, Harpo Productions it is. Welcome to the world of business with Jeff Jacobs help. Oprah Winfrey set up Harpo Productions. In 1986, she became the company's chairman and appointed Jeff as president, giving him a 5% stake in the new firm. Oprah trusted Jeff implicitly. She had come to him when she felt her old representation was letting her down. And Jeff had quickly struck new deals with networks and distribution companies that had made her millions of dollars. So together, they now began to plot.
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Jeff Jacobs
A path to take Oprah from the.
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Oprah Winfrey
Dressing room to the boardroom.
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Jeff Jacobs
She was already a television star.
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Oprah Winfrey
Now she was going to become a tycoon.
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Jeff Jacobs
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Oprah Winfrey
Apple Card issued by Goldman Sachs Bank.
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Jeff Jacobs
USA, Salt Lake City branch terms and.
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Oprah Winfrey
More at applecard.com Business Movers is sponsored by Grammarly.
- [04:13]
Jeff Jacobs
If you're anything like me, and I bet you are, then you like to find the best option.
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Oprah Winfrey
Could be Italian restaurants, car insurance, vacation spots, a lot of things.
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Jeff Jacobs
But sometimes the best option is not at all obvious. Like have you used any AI tools for work recently?
- [04:28]
Oprah Winfrey
Well, Grammarly has over 15 years of.
- [04:31]
Jeff Jacobs
Experience in secure, private, responsible enterprise grade AI and is trusted by teams at one third of the Fortune 500. Their enterprise grade security measures protect your.
- [04:41]
Oprah Winfrey
Organization'S data and keep your private information private.
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Jeff Jacobs
And it's designed to fit your user unique professional needs, working seamlessly with the.
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Oprah Winfrey
Apps you use every day.
- [04:49]
Jeff Jacobs
So for the best AI option, join 70,000 teams and 30 million people who trust Grammarly to work faster and hit their goals while keeping their data Secure. Go to Grammarly.comenterprise to learn more.
- [05:02]
Oprah Winfrey
Grammarly Enterprise Ready AI from Wonder E. I'm Lindsey Graham and this is Business Movers.
- [05:34]
Jeff Jacobs
By the late 1980s, Oprah Winfrey.
- [05:37]
Oprah Winfrey
Had become a household name in the United States. She had transformed a struggling Chicago morning talk show into a national success story. She had dethroned Phil Donahue at the top of daytime tv.
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Jeff Jacobs
And she even had success as an.
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Oprah Winfrey
Actor, landing a major role in the Steven Spielberg film the Color Purple. Being nominated for an Academy Award. She'd come a long way from the tiny apartment where she grew up in Milwaukee. But she was still far from being the all conquering media tycoon and first black female billionaire that she would become. But after teaming up with her new agent, Jeff Jacobs, Oprah had realized that she was operating from what she called a slave mentality. She decided that she didn't just want to be a talent for hire anymore. Instead, she was determined to take control of her career, which meant she would pick the stories for her show, she would produce the movies she made, and she would be the ultimate decision maker.
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Jeff Jacobs
In all of her life.
- [06:33]
Oprah Winfrey
Oprah knew that this independence would mean a greater personal risk of failure, but it would also mean a greater share of the rewards. But despite all her success in front of the cameras, making the move from TV star to businesswoman wouldn't be easy. Oprah was plagued by lingering self doubt.
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Jeff Jacobs
And had little idea how to run.
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Oprah Winfrey
A business while remaining true to herself. There would be missteps and course corrections ahead, but there was one thing Oprah was certain. She would never go back to the way things were. This is the second episode in our four part series on Oprah Winfrey taking control. It's late 1987 in the writers room of the Oprah Winfrey show, just over a year after the program went national. Oprah Winfrey sits alone at a conference table, tapping a marker against the side of her chair. On a large whiteboard on the wall in front of her is a list of possible episode topics. Sweeps is coming, the time when viewing data is collected so advertisers can determine their strategy and ad spend for the next quarter. So TV networks want their best programming to air during these periods and Oprah's looking for the most attention grabbing topics possible. But her suggestion that she host a panel of white supremacists has caused a fierce debate in the writers room and executive producer Deborah DeMaio has had to step in and smooth things over. Oprah looks up as Deborah steps back inside the writer's room and gently closes the door behind her. Well, Deborah, do I have a writer's strike on my hands? No, they'll be fine. They just need time to Cool off. They're being overdramatic. They're being passionate. So I won't have to cross a picket line on my way into work tomorrow? No, not yet. But white supremacists? Really? Oh, not you too, Deborah. These are not people who deserve a platform. I just think nothing in this country is going to change if we're not able to talk to people with different opinions than us. I agree, but there are different opinions and then there are different opinions. People like that Oprah, they're basically Nazis. Yeah, well, I can handle them. They probably don't think you should have the right to vote, let alone your own TV show. Deborah, I was born in Mississippi. You don't think I've heard all of it before? I wouldn't be bringing them on the show to agree with him. God, no. We'll be confronting their hatred, exposing their ignorance on national tv. Yeah, but we'd have no way of knowing what they would say. It's too much of a risk. Of course it's a risk. Oprah gets up from her chair and points her marker at the scrawled lists covering the whiteboard. But it's also a risk not doing it. I mean, look at these other suggestions. Are any of them just jumping out at you? No, because they're all the same old things. But this talking to white supremacists would be a ratings goldmine, Deborah. The network's gonna love it. It's just what they want for sweeps. Well, sure, the ratings will be high, but. No, but this is the business we're in, right? Right. Okay. Now, what do we always say? You know the words. Deborah sighs. There's a phrase that Oprah uses around the production office often. It's become a mantra for her. There are only two emotions. Love and fear. Love and fear. Right. And we don't feel fear, do we? We don't want it here. So go out there and talk to the writers. Tell them that we're doing this whether they like it or not. The taping of this episode in February 1988 did not go the way Oprah Winfrey had anticipated. The four so called skinheads on the panel were aggressive, rude and unapologetically racist. And as Oprah struggled to maintain control of the live broadcast, she saw that she'd made a mistake. Oprah had convinced herself that controversy was just good business. But now she realized there was still a lot she needed to learn. At 34 years old, Oprah Winfrey had become a multi millionaire. But she was finding the transition from on screen talent to Businesswoman harder than she had expected. Her career to date had been on an almost uninterrupted upward trajectory from bigger market to bigger market. First Nashville, then Baltimore, then Chicago, then nationwide. But suddenly she lacked confidence.
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Jeff Jacobs
As unsure of herself as she could.
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Oprah Winfrey
Remember being in her adult life. Errors in judgment, like the white supremacist episode only led her to more internal doubts about her decision making ability. She worried that perhaps she simply wasn't cut out to be a businesswoman. But whenever Oprah had questions about her own abilities, there was always one person she could rely on for encouragement and guidance. Her right hand man, Jeff Jacobs. By this time, Jeff wasn't only Oprah's lawyer, lawyer, manager and agent. He was also her closest and most trusted advisor. Since 1986, Jeff had also been president of Oprah's company, Harpo Productions. But despite everything he did for Oprah.
- [11:21]
Jeff Jacobs
Jeff didn't charge her any fees for his services.
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Oprah Winfrey
In the TV and film industry, it was the norm for talent to pay upwards of 25% to a team of agents and managers. But Jeff didn't take a dime. Some questioned why Jeff was giving up on such a lucrative source of revenue. In part, it was simply to keep Oprah happy.
- [11:39]
Jeff Jacobs
After all, she had left her old.
- [11:41]
Oprah Winfrey
Agent to join him. So she was clearly willing to fire representatives who didn't meet her expectations. But foregoing the usual agent fees was also part of a longer game for Jeff. When she'd founded Harpo Productions, Oprah gave Jeff 5% of the new company. Jeff believed he stood to make far more money serving as president of Harpo and taking a cut of its business.
- [12:03]
Jeff Jacobs
Than he would be by remaining just.
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Oprah Winfrey
Oprah's lawyer and agent. The way Jeff saw it, the more money Oprah had to invest in Harpo, the more successful it would be and the richer he would become. But by the summer of 1988, that plan had yet to come to fruition. Oprah and her program were doing well enough. At the end of June of that year, she won the Daytime Emmy Award for best talk show for the second year running. And she was named Broadcaster of the Year by the International Radio and TV Society, the youngest winner in the award's history and only the fifth woman ever to receive the honor. But while Oprah was successful and admired, Harpo Productions was little more than a name on a letterhead. It had no studio facilities, and no new productions were underway. Jeff was determined to change that. And there was one program he wanted to start with in 1988. Oprah's contract with ABC was up for renewal. By now, Oprah had a good idea of what she was worth to the network. She couldn't be fired or replaced, because without her, one of the most popular shows on television simply wouldn't exist. But it wasn't just Oprah's record breaking ratings that made her so valuable. It was also what her show did for those who followed her in the television schedules. Oprah's audience tended to stay tuned to the same channel for the evening news, and often even for the show after that. So when stations bought the Oprah Winfrey show, they weren't just buying her audience for an hour at a time. They were boosting the value of their advertising space for an entire evening. That was worth millions of dollars to ABC and its affiliate stations nationwide. And it made the network all the more desperate for Oprah to renew her contract and keep her talk show on the air. This gave Oprah and Jeff all the leverage they needed. By now, Oprah was already the highest paid talk show host on TV. She was set to earn in excess of $31 million in 1988, over 80 million today, and a 200% increase on her income from just two years earlier. But she didn't intend to ask for more money from abc. Instead, she wanted to own the Oprah Winfrey show and produce it at Harpo Productions. It was a big ask. Not even the former king of daytime talk, Phil Donahue, ever owned his show. But Oprah was determined to seize the reins. The first step was to talk to King World Productions. King World was the distribution company that sold the national syndication rights to the Oprah Winfrey Show. Jeff pitched them a new five year.
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Jeff Jacobs
Deal in which King World would continue.
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Oprah Winfrey
Handling the rights to the Talk show through 1993. Only instead of selling a show produced by the Chicago affiliate of abc, King World would now be selling a show made by Harbrook Productions. That was fine by them, but there was a catch. As part of the proposed deal, Jeff Jacobs also demanded a sizable cut of the profits King World made on Oprah's show. This was a tougher pill to swallow, But Jeff knew he was in a strong bargaining position. King World didn't want to risk losing the program to a rival, so he quickly agreed to give Harpa Productions what Jeff asked. With that deal secured, Jeff then approached abc. The network could have resisted Oprah's play for ownership, but then they would have had unhappy talent on their hands. A talent who could walk away as soon as her contract ended. ABC couldn't afford to take that risk. So they also caved to Jeff's demands. For an undisclosed fee, ABC agreed to let Oprah acquire her talk show and begin producing it under her own banner. Of course, despite losing control over the Oprah Winfrey Show, ABC still wanted to continue airing it. So they quickly inked a deal with Oprah and King World to broadcast the program for the next five years. All in Industry analysts estimated the deal to be worth more than $500 million. And this agreement would give Oprah complete control over the show, the kind of.
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Jeff Jacobs
Creative freedom she'd never had before.
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Oprah Winfrey
But just as importantly, the deal would give her a platform to prove herself that she could be a business woman. And with Jeff Jacobs encouragement, she was also going to prove it to the world.
- [16:11]
Jeff Jacobs
Business Movers is sponsored by Monarch how much did you spend on groceries this month? I have to admit, if you ask me, I do not know the answer to that. Certainly not off the top of my head. And a month ago, if I were to try to find out, I'd have to scour statements from like three different credit cards plus my checking account.
- [16:28]
Oprah Winfrey
It's a lot of work.
- [16:29]
Jeff Jacobs
But there is a better way. Monarch is the top rated all in one personal finance app. You get a comprehensive view of all your accounts, investments, transactions and more. Create custom budgets, track progress toward financial goals and collaborate with your partner. Plus, Monarch helps you make smart money moves to get you closer to your goals. And now get an extended 30 day free trial when you go to monarchmoney.commovers. i love the Monarch Dashboard.
- [16:55]
Oprah Winfrey
A quick at a glance financial check.
- [16:57]
Jeff Jacobs
In how much did I spend on groceries? Well, it's right there. Category Authorized automatically. After trying out Monarch for myself, I understand why it's the top rated personal finance app. And right now listeners of this show will get an extended 30 day free trial when you go to monarchmoney.commovers. that's M O N A R C H M o n e y.com movers for your extended 30 day free trial. Business Movers is sponsored by the Walker Webcast. If you're looking to learn more about commercial real estate, entrepreneurship, leadership and the economy, where would you turn? Well, a good start might be the CEO of one of the largest commercial real estate, finance and advisory services firms in the nation.
- [17:38]
Oprah Winfrey
But how are you ever going to.
- [17:39]
Jeff Jacobs
Get on their calendar?
- [17:40]
Oprah Winfrey
Ah, you don't have to tune into.
- [17:42]
Jeff Jacobs
The Walker Webcast hosted by Willie Walker, CEO of Walker and Dunlap, an unparalleled leader in commercial real estate. Listen in on conversations with guests like a Rod economist Dr. Peter Linneman and Walker and Dunlap experts. Learn more@wALKERdunlap.com podcast and be sure to follow Walker and Dunlap on all your favorite social media channels. That's walkerdunlap.com podcast. The Walker webcast Insights for Life.
- [18:23]
Oprah Winfrey
It's the summer of 1988 on a rundown lot on the west side of Chicago. Soon after Oprah Winfrey signed her new deal with abc. Oprah's close advisor, Jeff Jacobs, has been all over the city looking for the perfect property to be the new home of Harpo Productions. And finally, he thinks he's found the spot. A dilapidated 30 year old television studio. He walks Oprah through the site, giving her the pitch. So it's a hundred thousand square feet in all, and that's enough space for everything we want. We'll have one stage devoted to just the Oprah Winfrey show and separate stages for your other projects. Not the best neighborhood, though. It feels a bit industrial. Look, if we bring our studio here, the neighborhood will change fast enough. And trust me, the way Chicago is developing, just look. The near west side is the only area downtown can expand into. I don't know. Looks like a meat packing plant. Well, I think it used to be a cold storage facility back in the day. How much do they want for it? 4 million. And then we'll have to renovate everything. I don't know. It doesn't even look safe. What do you think we're looking at in total? Well, probably another 15 million for the construction work. And with the purchase price, 20 million all in. That's a lot of money. Yeah, it is, but it's nothing you can't afford. And this is the right time to invest. If Harpo can control the space where we shoot our projects, it'll save us huge amounts of money down the line. And when we're not using the studios ourselves, we can rent them out. There's New York on the east coast, Louisiana on the west. But there's nothing like this in Chicago. The demand's there. I don't know. I mean, couldn't we go back to abc? They might be interested in putting up some of the capital for this. Well, I'm sure they'd be happy to because then you'd be tied to the network again. Look, we don't want to take a step backwards. We have to look for it. I don't want to be pushy, but I do think this is the best choice for us, for Harpo, and most of all, for you. But it's your call. You're the boss. Oprah looks around. It takes a lot of imagination to picture what this crumbling TV studio could become. Everything would depend on me, wouldn't it? Yeah, but that shouldn't scare you, Oprah.
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Jeff Jacobs
Should excite you.
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Oprah Winfrey
You're not even 35 years old yet you're the most successful talk show host in the world. The sky is the limit for you. You just have to believe. So which building would be for my show? Is that a yes? No. Let me sleep on it. Okay. This is a yes, isn't it? Oprah smiles. Let me sleep on it. Oprah Winfrey bought the property and construction soon got underway. Over the next 18 months, Oprah and her partner spent the modern equivalent of $60 million on the renovation and expansion of the site. Oprah made sure that Harpo Productions new home was equipped with everything the studio could need. She was about to become the first African American woman in history to run her own production studio. So if she was going to take on New York and la, she would have to do this right. As part of Oprah Winfrey's new deal with abc, Harpo Productions would make at least three primetime specials for the network every year. The first project to get the green light was a two part television movie called the Women of Brewster Place, based.
- [21:29]
Jeff Jacobs
On an acclaimed novel.
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Oprah Winfrey
Oprah produced and starred in the miniseries, which aired on ABC in March 1989. More than 35 million viewers tuned in. And with those ratings, Oprah marched right over to ABC and pitched them an entire series based on the special, simply called Brewster Place. She convinced the ABC executives to air a weekly show in a primetime slot Again, Harpo Productions would produce the program and Oprah herself would be the star. Brewster Place was filmed at Oprah's new studio in Chicago and debuted on ABC in the spring of 1990. Episode one opened to a solid 21.9 million viewers. But every week after that, its ratings declined. Critics call it complacent, artificial, antiseptic and heavy handed. By episode six, it had lost almost half its audience. And ABC didn't see those numbers getting any better. So with two episodes of the first series still to air, the network canceled Brewster Place. Oprah was shocked by the response to the show and its cancellation. She had been convinced Brewster Place would be another hit. It had been based on an already successful miniseries, and the famous poet Maya Angelou had joined the production as one of the writers. But instead, the series was an expensive failure. This was one bet that had not paid off. In the aftermath, many Around, Oprah urged her not to give up on movie and television projects. Setbacks were part of the business, and not even Oprah could expect every project to be a runaway success. But Oprah wasn't convinced. The demands of both producing and starring in her own movies were too much, and she decided that she was at risk of neglecting the show that had made her famous and the audience that had grown to love her. So Oprah reevaluated. She shifted her focus back to her talk show, and that would be the heart of her business going forward. Plus, now that she had creative control over the Oprah Winfrey show, she could decide exactly what that program would be. She didn't want to chase viewers with shock tactics anymore. She'd sworn off the tabloid topics after the disastrous Skinheads episode and wanted instead.
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Jeff Jacobs
Her show to carry uplifting messages that would improve the lives of her viewers.
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Oprah Winfrey
She was inspired in this new mission by the most successful episode of the program to date. Back in November 1988, the same year that Oprah bought the land for Harpo Studios, the Oprah Winfrey show had produced a special entitled Diet Dreams Come True. At the start of the taping, Oprah.
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Jeff Jacobs
Had walked out on stage and revealed.
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Oprah Winfrey
A slim new look. She had long struggled with her weight, and at one stage, to satisfy cravings.
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Jeff Jacobs
She was even dispatching her producers to.
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Oprah Winfrey
Secretly pick up Wendy's orders in the.
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Jeff Jacobs
Middle of the night.
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Oprah Winfrey
But now she had lost an impressive 67 pounds. She called the accomplishment the greatest of her life and proceeded to tell her audience exactly how she'd done it. She held up a package of Optifast powder, explaining that she mixed it with water in a special cup and drank the concoction five times a day. That was it. That was her secret. Before this episode even finished, the company.
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Jeff Jacobs
That made Optifast was inundated with more.
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Oprah Winfrey
Than a million calls. As orders poured in from across the country, the power of Oprah's endorsement was clear, and in time, it would become known as the Oprah Effect. But the episode wasn't just a moneymaker for Optifast. Diet Dreams Come True became the most watched episode of Oprah's career so far, with 44% of the entire daytime television audience tuning in. Those were staggering ratings, even for Oprah, and more. More than a year later, in the wake of the failure of Brewster Place, Oprah remembered that episode. She decided that was what she wanted to do with her show from now on. So she began preaching a regular dogma of self help on the Oprah Winfrey show live your best life was the phrase she used. Oprah repeated it so often and with such gusto that these words became widely associated with her and she eventually even trademarked them as her own. This mantra of self improvement helped drive an even deeper connection between Oprah and her audience. Oprah's genius was making herself relatable. Despite her ever growing wealth and fame.
- [25:40]
Jeff Jacobs
She was trying to live her best.
- [25:42]
Oprah Winfrey
Life just like everyone else. But even Oprah didn't realize how truly devoted her fans were until a tabloid.
- [25:49]
Jeff Jacobs
Scandal threatened to fatally undermine her image.
- [25:52]
Oprah Winfrey
As America's best friend. Oprah had always been vulnerable and open with her audience to a point. Despite her famous honesty, there were still some secrets she kept. Among them was the fact that she.
- [26:04]
Jeff Jacobs
Had been paying her troubled half sister.
- [26:06]
Oprah Winfrey
Patricia a twelve hundred dollar monthly allowance to help her get by. In 1990, though, Oprah cut off the money. She thought Patricia was just using the allowance to buy drugs and she didn't want to enable addiction any longer. Patricia was furious and she was quick to take revenge. Patricia went on the National Enquirer tabloid for the equivalent of about $50,000 in modern money. Patricia gave them an exclusive about Oprah's wild teenage years, including the never before revealed fact that Oprah had gotten pregnant at the age of just 14.
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Jeff Jacobs
When this edition of National Enquirer hit.
- [26:42]
Oprah Winfrey
Newsstands in March 1990, Oprah was left distraught and humiliated. She refused to get out of bed for three days, thinking the entire world was going to hate her. It was her boyfriend, Stedman Graham, who finally got through to her. He told Oprah that she wouldn't be the only one who'd gone through such a traumatic experience. But she could help others to cope with what they'd been through by stepping forward and accepting herself for who she was.
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Jeff Jacobs
If she did that, Stedman was confident.
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Oprah Winfrey
Her audience would rally around her again. Oprah wasn't so sure. But she finally pulled herself out of bed and issued a public statement. She admitted that she had become pregnant as a teenager and that the baby had died shortly after birth. She also said that her heart went out to her sister, who she implied.
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Jeff Jacobs
Had sold the story to the tabloid.
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Oprah Winfrey
For drug money and had been taken advantage of by the publication. This scandal had forced Oprah to confront her childhood horrors, but it had also.
- [27:37]
Jeff Jacobs
Confirmed the deep connection between her and her audience.
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Oprah Winfrey
Audience Oprah had expected to be shunned, but in fact, her audience saw her as brave and inspiring. And this gave Oprah confidence that she had made the right call to focus on her show and not movies or television dramas. But though there were some silver linings to the tabloid scandal, Oprah was still left deeply wounded by what she saw as her sister's betrayal. She felt dismayed that she had come so far only to be undermined and embarrassed. So in the future, she would be.
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Jeff Jacobs
Determined to keep even those closest to.
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Oprah Winfrey
Her on a tighter leash. But the more control Oprah demanded over those around her, the more those around her would want to break free.
- [28:21]
Lindsey Graham
Audible's best of 2024 picks are here. Discover the year's top audiobooks, podcasts and originals in all your favorite genres, from memoirs and sci fi to mysteries and thrillers. Audible's curated list in every category is the best way to hear 2024' best in audio Entertainment, like a stunning new full cast production of George Orwell's 1984 heartfelt memoirs like Supreme Court Justice Ketanji Brown Jackson's lovely one. The year's best fiction, like the Women by Kristin Hanna and Percival Everett's brilliantly subversive James. Another worthwhile listen is Amy Tinterra's thrilling and twisting whodunit. Listen for the Lie. This laugh out loud, funny tale follows Lucy, a woman who needs to clear her own name after a true crime podcast decides to probe into the worst night of her life, one she conveniently can't remember. Audible. There's more to imagine when you listen. Go to audible.com wondrypod and discover all the years. Best Waiting for your.
- [29:36]
Oprah Winfrey
It's June 1993 in Oprah Winfrey's Chicago condo, three years after the tabloid scandal with her half sister, Oprah Winfrey pours herself a glass.
- [29:46]
Jeff Jacobs
Of wine and paces around her 57th.
- [29:48]
Oprah Winfrey
Floor apartment, looking out over Chicago's magnificent mile. She frets about what she has to do next. She has a deal with a publishing house, Knopf, to release her upcoming autobiography. It's one of, if not the most highly anticipated titles of the year. But Oprah is not happy with the book and the scrutiny of her private life it'll provoke, so she wants to cancel its publication. She's been putting off telling her publisher this as long as possible, but the book is due to come out in just a few months, so it's now or never. Oprah's assistant approaches with the phone. She mouths, it's them. Before handing over the handset. Hi, this is Oprah. Oprah, so good to hear from you. We were just talking about the book. Yeah, that's why I called. Actually. We were thinking of upping the numbers of the first print run. I don't think a million copies should be difficult. Oh, wow, that's ambitious. I don't think it's ambitious. We just can't tell you how excited we are. I just finished rereading the latest draft. It is so great. You really think that the publisher senses something's off? I do, but do you? Is everything okay? Well, I've been thinking. I feel like the book isn't there yet. The ghostwriter, he's great, but he's not got it right yet. Well, we can get you someone else to give the draft a polish if that'll make you feel better. Happens all the time. Don't even worry about it. No, I don't think that'll solve it. I think. I think we have to pull the book. Excuse me? I need to put more time into it to get it right. Well, we could push the release back a week or two. No, that's not what I mean. Until I've had time to really figure out how it should go, I think we need to reconsider the whole thing. Oprah. What are you saying? I'm saying we have to pull it. Put it on hold indefinitely. Oprah, we've made promises to retailers across the country. They're counting on this book for sales. Your fans are looking forward to it so much. They're going to be devastated. Believe me, I know, and I'm sorry. Maybe down the line we revisit it, but until then, I cannot move forward. We had a deal. I never signed a contract. We had a letter of agreement. A non binding one. Yes, technically, but only because you wanted to forego your advance. We were promised a 5050 split of profits. We've made plans based on the estimated revenue. This is going to be a serious loss for us. I understand that and I'm so sorry. I really, truly am. People are going to assume you're hiding something that's not going to be good for your brand. I'm not hiding anything. I just don't think it's a reflection of me. At my best, I would regret putting it out there. And that would be even worse for my brand. I just hope you can understand. Is there anything I can say to make you change your mind?
- [32:20]
Jeff Jacobs
No.
- [32:20]
Oprah Winfrey
I'm sure about this. I can't publish what we have right now or anytime soon. And that's my final decision. To make up for canceling her autobiography, Oprah Winfrey made a peace offer offering to Knopf. Her personal chef was publishing a cookbook filled with low fat recipes. It wasn't the same as an authorized biography. But the cookbook would be endorsed by Oprah and promoted on her show, and Knopf could use her name in all their marketing materials. The result was the Oprah effect struck again. And within a year, the cookbook had sold nearly 6 million copies. Oprah had kept Knopf happy, and she had kept control. But soon Oprah would discover there were some things that even she didn't have power over. In 1994, Oprah Winfrey's staff came to her with a serious complaint. They accused her program's executive producer, Deborah DeMaio, of being tyrannical and unreasonable, and they refused to work with her anymore. The staff gave Oprah an ultimatum. Either Deborah went or they did. Oprah had worked with Debra since her earliest days in Chicago, and she hated the thought of losing someone she trusted. But on the other hand, Oprah could not afford to lose her show's entire staff either. Ultimately, she had no choice. Oprah asked for Deborah's resignation, and in exchange, Oprah paid Deborah a severance worth over $8 million today and had her sign a confidentiality agreement stating she'd never talk publicly about Oprah or the show. But it wasn't really Debra the staff was complaining about. Oprah put in punishing hours at the studio and expected her employees to do the same. This led to frequent accusations that Harpo productions was a toxic place to work. So two months after Debra left, Oprah lost her assistant. Soon after that, her PR Rep, Colleen Rowley, sued Oprah for breach of contract. Oprah didn't want to settle, so she and Colleen ended up in court. But as the legal battle got drawn out, Oprah's private life came under scrutiny. Through various depositions, and fearful of losing control of her story again, Oprah ended up settling the case. Increasingly, Oprah felt vulnerable. She feared her employees might turn on her and start selling stories to the press just like her half sister had done. So to combat this opinion, Oprah began making everyone in her life sign non disclosure agreements. From her talk show staff to her driver to random guests who stopped by the office. Her legal diligence was extreme, but Oprah thought it was necessary, and she was unapologetic. Her life and her business had become one and the same. So if anyone attacked her character, they attacked her show and vice versa. By now, Oprah had realized she was in the business of just being Oprah, and it was a big business. By 1994, the Oprah Winfrey show was bringing in $196 million in annual revenue. Oprah's production company, Harpo, took in close to 100 million, and Oprah herself earned about 74 million in pre tax income. And those figures were set to rise. Oprah's advisor, Jeff Jacobs and King World Productions had recently negotiated the latest round of syndication rights for the Oprah Winfrey Show. The program was now broadcast internationally as well as on 210 stations across the United States, and they all agreed to new and more lucrative deals to continue carrying the show. The days when Oprah Winfrey had doubted her abilities as a businesswoman were long gone. She wasn't always conventional. She didn't always do what others thought best or what would make her popular. But she was now more confident that she knew what she wanted and how to get it. And with this realization, there would be no stopping her. The foundation of her business would remain the Oprah Winfrey show. But on top of it, she would start building a new media empire. She would put the Oprah effect to the test with new products in new markets. She had ideas for a book club, a magazine, her own television network. But before she could make any of these dreams a reality, Oprah would find herself in court yet again. This time, though, she wouldn't be fighting a disgruntled employee. This time, in the battle for control over her life and her business, she'd be going head to head with an.
- [36:35]
Jeff Jacobs
Entire industry.
- [36:39]
Oprah Winfrey
From wondering. This is episode two of Oprah's Empire for Business Movers. On the next episode, a provocative installment of the Oprah Winfrey show lands Oprah in legal trouble. But it's not enough to stop her from becoming the world world's first Black female billionaire.
- [36:56]
Jeff Jacobs
If you like business movers, you can unlock exclusive episodes found nowhere else on Wondery plus and access new episodes early and ad free. Join Wondery plus in the Wondery app or on Apple Podcasts. Prime members can listen ad free on Amazon Music. And before you go, tell us about yourself by filling out a survey@wondery.com survey if you'd like to learn more about.
- [37:19]
Oprah Winfrey
Oprah Winfrey, we recommend a biography by Kitty Kelly, Lifeline Biographies Oprah Winfrey, Global Media Leader by Katherine Krohn and WBEZ Chicago's Making Oprah A Quick note about our dramatizations. In most cases, we can't know everything that happened, but all our reenactments are based on historical research. Business Movers is hosted, edited and executive produced by me, Lindsey Graham for Airship Audio editing by Mohammad Shazib Sound design by Gabriel Gould music by Lindsey Graham. This episode is written and researched by Alex Burns. Executive producers are William Simpson for airship and Erin O'Flaherty, Jenny Lauer Beckman and Marshall Louie for Wondering.
- [38:06]
Narrator
Now streaming on Prime Video. You can call me Detective Alex Cross. Based on characters created by James Patterson. Detective Cross, you've been doing this a long time. And you're the best. And created by Ben Watkins. Multiple victims I connected. To this comes a thrilling new series. He's a serial killer.
- [38:25]
Oprah Winfrey
I don't care for fun.
- [38:26]
Narrator
This thinks he's the smartest guy in the room.
- [38:28]
Oprah Winfrey
There's a lot of sickos out there.
- [38:30]
Narrator
He actually believes he's an artist. You're going to be part of a masterpiece. This is the product of an unbelievable obsession. Aldis Hodge is DC's finest. Alex Cross. If we don't find him soon, we may never have another chance again. Thirty years knowing Cross, I learned to trust his gut. I get inside his head.
- [38:48]
Oprah Winfrey
The clock's ticking.
- [38:49]
Narrator
He was hitting my house. He messed with my kids. He's gotta be getting close.
- [38:53]
Oprah Winfrey
You think you can stop him?
- [38:55]
Narrator
I know I can. Because I know him better than he knows himself. Cross. A new original series only on Prime Video. Watch now.