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Lindsey Graham
Want to get more from business movers? 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. It's 1963 at a restaurant in Sydney, Australia. 32 year old Rupert Murdoch places his knife and fork on an empty plate and settles back in his chair. This is his favorite restaurant, but not because of the food, it's the proximity to his office. Rupert loves his work and over the last few years he's bought several regional newspapers. Now his company, News Limited is one of the biggest media businesses in Australia. And that success has attracted the notice of Robert Maxwell, who's flown in all the way from London with what he describes as an exciting opportunity. Rupert tops up Robert Maxwell's glass. So, encyclopedias. Encyclopedias, yes. I've managed to acquire some of the finest ever published and I'm in the middle of around the world trip to find partners to sell them. I've just come here from India where there was phenomenal interest. How many did you sell there? I don't have the exact figures at hand, but there was a lot of interest. And given your growing international reputation, Mr. Murdoch, I wanted to offer you first refusal in Australia. Well, I do want to expand of course, Mr. Maxwell, but encyclopedias? I'm not sure it's worth my while to enter an unfamiliar market for a one time deal. Well, don't think of it that way then. My company, Pergamon Press, is the fastest growing scientific publishing house in the world. If these encyclopedias sell well, which I expect they will because they're marvelous, then I'll be looking for a partner to set up Pergamum Australia. So a long term investment, that's good. That's what I'm looking for. But we must begin with encyclopedias. I even took the liberty of drawing up a contract. 2 million Australian dollars for the lot. Rupert glances over the paper. No, that's too much. Half a million at most. One and a half million. Three quarters. One and a quarter, which is a bargain price and I'll barely make a profit. But what do you say? Robert holds out his hand across the table. Rupert begins to lift his, but he pauses when Robert's eyes light up. Robert's eagerness to close this deal makes Rupert wonder whether there's more to this than he realizes. He decides to push a little harder. One million. One million. Take it or leave it, Mr. Maxwell. That's as far as I can go. If these encyclopedias are as good as you say, then I'm sure you won't have any problem selling them elsewhere. Robert slumped slightly. Very well. One million. And you can provide references from your other buyers, I assume. Robert seems to deflate even further. Yes, I can provide those. Well, in that case, consider it a deal. Rupert grabs Robert's hand and shakes it firmly. Let's hope that this is the start of a long and productive relationship. Murdoch and Maxwell. I like the sound of that. Imagine what we can achieve together. Rupert Murdoch and Robert Maxwell's business partnership did not last long. After leaving the restaurant, Rupert made a few phone calls to check out his new partner, and he soon discovered that Robert had picked up the encyclopedias for free from a bankrupt printer, and that Robert's claim that he'd sold millions of copies in India was false. Unwilling to put trust in Robert anymore, Rupert backed out. And initially Robert insisted that he harbored no hard feelings toward Rupert over the collapse deal. But that would soon change, because the next time their paths crossed, Rupert Murdoch and Robert Maxwell would not be partners, but rivals. 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And it's designed to fit your unique professional needs, working seamlessly with the apps you use every day. 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. Grammarly Enterprise Ready AI from Wonder E. I'm Lindsey Graham and this is Business Movers. By the early 1960s, Robert Maxwell's business empire was growing rapidly. A former refugee fleeing the Nazis, Robert had founded pergamon Press in 1951. The company had then redefined the British scientific publishing industry by expanding into new areas of research and new territories, making Robert a millionaire in the process. And he was determined to enjoy his newfound fortune. Robert spent lavishly on luxury cars and yachts, and he agreed to take on the lease of Headington Hill Hall, a rundown mansion just outside Oxford, before spending hundreds of thousands of pounds to refurbish it to his exacting standards. Robert combined his publishing business with a second job as Member of Parliament for the small town of Buckingham. But Robert was always an outsider in government and he didn't climb the ladder as he had hoped. This rejection only proved to him that Britain was still too ruled by archaic traditions and class, and that there was no place in the halls of power for an Eastern European immigrant like him. So Robert decided to seek the influence he craved another way. By deciding to become Britain's most powerful media mogul. But Robert had made his fortune by dealing with academics, not businessmen. He was used to imposing himself and bullying his way to success through a forceful personality. But in the cutthroat world of newspapers, Robert wouldn't find it so easy. If he was to succeed in this new industry, Robert would have to adapt by reining in his grandiose ways and working in a more subtle manner. But subtlety was not something that came naturally to Robert Maxwell. This was one lesson he'd take more than a decade to learn. This is the second episode in our four part series on media mogul Robert Maxwell. Three strikes. It's January 2nd, 1969, at the Connaught Meeting Rooms in Covent Garden, London, six years after Robert Maxwell and Rupert Murdoch's dinner in Sydney. Robert huffs impatiently in his seat, drawing glances from the people sitting next to him. They're listening to a speech by Sir William Carr, the aging chairman of the News of the World, Britain's best selling Sunday newspaper. Recently, Sir William has decided it's time to sell. And Tonight he's gathered 500 shareholders together to discuss the two rival bids for his stake. One is an offer from Rupert Murdoch, and the other is from Robert Maxwell. Since Robert's offer is considerably higher, he's arrived at the meeting confident of success. But now Sir William is trying to steer the shareholders to accept Rupert's offer instead. And so Mr. Murdoch has promised to respect the News of the World's unique place in British culture. Although he himself is an Australian, he is proud of his extensive family ties to this country. He's enjoyed great success and I know he will bring new blood and new energy to our organization. Something I'm not sure can be said of the alternative. Hearing this, Robert has had enough of Sir William's biased campaigning on Rupert's behalf. He rises to his feet. May I respond or must I sit here and listen to you slander me? Sir William looks down his nose at Robert. Perhaps you would like to introduce yourself to the rest of the shareholders? By all means. Ladies and gentlemen, my name is Robert Maxwell. I represent the other bidder for this company, the one Sir William has barely mentioned so far except in insult. Robert is startled by the response of the shareholders. Sir William taps on the microphone. Oh, let him speak. The room quietens. Get on with it then, Mr. Maxwell. Robert turns to his fellow audience members and addresses them directly. My offer is higher than Mr. Murdoch's, but I'd like the chance to explain how I would also bring new blood and energy to this business. The News of the World was once one of this nation's great newspapers, but for years now it's been in sad decline. It is time for new management, new ideas, and I can provide them. If you please. If you please. Are you not going to give me a fair hearing? Is that not the British way? I would be careful, Mr. Maxwell, in seeking to lecture any of us on what is or is not British. Robert's face flushes with anger as the audience continues to laugh. Among the jeers, he can hear several people shouting for him to go home or go back to where you came from. I think we've heard it. No, I'm not done. Sit down, Mr. Maxwell. Oh, yes, I suppose it's nearly noon, isn't it? Rather than breaking stories, your chairman is more interested in breaking for lunch. His midday martinis are more important to him than your profits. Ladies and gentlemen. Ladies and gentlemen, my offer is better. I am the obvious choice. But no one is listening to Robert anymore. Sir William stands and addresses the shareholders. Does the meeting wish to hear any more from Mr. Maxwell? I think they've made their feelings clear. Robert finally sits down, his face red as peals of laughter rock the room. It's time to put the offers to a vote because as we all know, I have a martini lunch to get to after all. Although Robert Maxwell's offer for the News of the World was the more generous of the two, the newspaper's shareholders rejected his bid. Instead, the paper was sold to Rupert Murdoch's News Limited for a smaller sum. Robert was certain the main reason for his defeat was hostility to his Eastern European roots. He was left angry, humiliated and more determined than ever to get his way next time. In the summer of 1969, six months after the sale of the News of the World, another British tabloid was put up for sale. The sun wasn't as appealing a prospect as the News of the World. It was losing millions of pounds every year and a recent rebrand had done nothing to stop the slide in sales. But these woes did not deter Robert Maxwell. The Sun's owners offered to sell him the paper for the bargain price of £50,000, the equivalent of around $1.3 million today. But there was a condition attached. Robert had to persuade the son's printers to agree to the deal too. For months, the management of the sun had been locked in a dispute with the printers unions. The sun wanted to renegotiate its printing contract to lower costs and that would mean layoffs that the union didn't like. The printers were in a powerful negotiating position as there were few firms that could handle the high speed, high volume printing necessary to print millions of newspapers every day. If the workers went on strike over the new contracts, newspaper production would grind to a halt. So Robert joined the negotiations as part of his bid to buy the Sun. As the newspaper's new owner, he would be expected to implement any agreement with the unions. But he was in no rush to end the dispute. He felt that the longer the stalemate between the paper and the printers dragged on, the more likely it was that the printers would cave in. And that would mean the sun would earn bigger profits under his ownership. But there was a flaw in Robert's strategy. He assumed that no one else was interested in buying the son. But there was Rupert Murdoch, the new owner of the Sunday newspaper. The News of the World had printing presses that were idle for six days of the week. He saw the sun as the ideal daily companion to his Sunday paper. So Rupert outbid Robert the this time he offered £80,000 to buy the sun and quickly struck a deal with the unions to end their dispute. Within days of Rupert joining the fray, the sun had joined News Limited's expanding range of titles. And for the second time in less than a year, Rupert Murdoch had bested Robert Maxwell. But round three would have to wait because a crisis was about to hit Robert's existing business. In October 1969, Robert Maxwell was summoned to appear at an extraordinary general meeting of Pergamon Press shareholders. The location was an inauspicious one for Robert. The Connaught meeting rooms in Covent Garden, the same place where he had been humiliated during his attempt to buy the News of the World. But this time, Robert was required to defend his actions as chairman of Pergamon. After a routine audit had revealed irregularities in the company's accounts over the previous year, Robert had been in talks to sell Pergamon Press. The buyer was American businessman Saul Steinberg, who had promised that Robert would remain Pergamon's day to day manager after the takeover was complete. But Robert had wanted to secure the best price possible, so he'd made Pergamon appear more profitable than it actually was by having several of the smaller companies he owned buy worthless back issues of Pergamon journals at vastly inflated prices. Only when Saul Steinberg dug deep into Pergamon's books did he realize that a large proportion of its revenues was bogus. Pergamon was nowhere near as valuable as Robert had claimed. And thanks to a tip off to the press, the scandal soon went public. Pergamon's shareholders were furious. The company name had been dragged through the mud. And at this general meeting in London, they confronted Robert about the allegations. Robert responded by trying to adjourn the meeting. And when that proposal was shouted down, he then tried to block a vote on Saul Steinberg's takeover. Because once Robert's creative accounting had been uncovered, Saul had slashed his offer for Pergamon, and Robert no longer wished to accept it. But by now, the other shareholders just wanted Robert out. They voted to accept the buyout, and the lower purchase price would cost Robert dearly. Rather than earning the equivalent of almost $100 million from the deal, as he'd hoped, Robert stood to gain just over a tenth of that. The shareholders then voted to remove Robert from the board as well. The final humiliation came when Saul Steinberg reneged on his agreement to keep Robert on at Pergamon. And instead, Robert was forced out of the company he'd founded more than 20 years earlier. Three weeks later, laborers arrived at Headington Hill hall near Oxford. This luxurious mansion wasn't just home to Robert and his wife and children, but the head office of Pergamon Press was located in the hall's large gardens. And these laborers had come to bar Robert from entry. A tall wooden fence was erected around the office building, but not even the barbed wire on top could keep Robert out. At night, when all the workers had gone home, Robert would sneak inside and skulk through the hallways of his former offices, plotting his revenge. In the aftermath of the sale of his Pergamon shares, Robert realized that Saul Steinberg only had control of the British business. The American subsidiary of Pergamon was an independent entity, and Robert still owned 75% of its shares. That left Saul in a precarious position. Previously, Pergamon US would send all its revenue back to Britain, a figure that made up 40% of Pergamon UK's income. But not anymore. Now, Robert kept hold of the American revenue for himself, but he did send back to Britain the bills he had. Contracts that proved that costs and supplies accrued by Pergamon US were legally the responsibility of the British parent company. Left with all the costs and none of the revenues, Pergamon UK launched a flurry of lawsuits to wrest control of the American business away from Robert. But Robert was no stranger to legal action and was convinced he stood on strong legal ground. So rather than back down, he responded by countersuing Pergamon UK for harassment. And while Pergamon UK unsuccessfully pursued Robert through the courts, Robert traveled to the United States. He'd never had much to do with Pergamon's American subsidiary before. He'd left other people to run the company while he concentrated on his interests in the United Kingdom and Europe. But now he had more time on his hands. Having first lost pergamon UK in 1969, Robert lost his seat in Parliament. The following year, the Labour government was defeated in a general election by a resurgent Conservative party, and Robert was among the labor politicians ejected by voters. So now that Robert was free of his responsibilities as a member of Parliament, Pergamon US got his full attention. And across the Atlantic, he pursued the same sort of tactics that had brought him success before. Securing deals with existing publishers and signing up academics who had been left frustrated by the more established academic presses. By the end of 1973, profits were rocketing at the American subsidiary. But back home, Pergamon UK was close to bankruptcy. Roberts withholding of American revenue meant that the British parent firm firm had racked up debts of £5 million. Robert had his old company right where he wanted it. He made the increasingly desperate Saul Steinberg an offer. He would give Pergamon UK some of the revenue that Robert had Stockpiled in Pergamon US's accounts in return for a place on the British company's board. Saul had no choice but to agree, giving Robert a foothold back at Pergamon uk. But he wasn't satisfied with only that. Robert wanted full control. And by now, Saul Steinberg had lost his heart for the battle. Pergamon's stock price had slumped by more than 90%, and Saul just wanted to cut his losses. He told Robert that he would be willing to sell the company to him. And in January 1974, Robert bought back his controlling interest in Pergamon UK and was reappointed chairman. Robert announced his return in an all staff meeting in the company cafeteria. His speech was just two words. I'm back. With Robert at the helm again, and the healthy profits of the American subsidiary now flooding back into its accounts, Pergamon resumed its upward trajectory. And with his publishing business back on track, it was time for Robert to resume his old obsession. Five years on from his first attempt to break into the newspaper industry, Robert was still determined to establish himself as Britain's most powerful media mogul. But having failed with bids for both the News of the World and the sun, he would change tactics. This time, Robert Maxwell would not try to buy a tabloid. He'd set out to buy the most prestigious newspaper in the country. 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. It's a lot of work. 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 extended 30 day free trial when you go to monarchmoney.com movers. I love the Monarch Dashboard. A quick at a glance financial check in how much did I spend on groceries? Well, it's right there. Categorized 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. But how are you ever going to get on their calendar? Ah, you don't have to tune into 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@walkerdunlup.com podcast and be sure to follow Walker and Dunlap on all your favorite social media channels. That's walkerdunlup.com podcast. The Walker webcast insights for life it's October 1980 in Oxford, six years after Robert Maxwell seized back control of Pergamon Press. In his executive box, Robert groans as a soccer player takes a wild shot that sails over the top of the goal. Robert's here at the small home stadium of the Ewes, the local soccer team Oxford United. Robert's not just here to cheer them on. He's hoping to impress the man sitting next to him, Kenneth Thompson, 61 year old. Kenneth is everything Robert aspires to be. He presides over a vast business empire. He holds the noble title Baron Thompson of Fleet, and he is the owner of the most prestigious newspaper in the country, the Times. Robert, though, has heard that the Times isn't making a profit and that Kenneth is open to the idea of selling dosh. You see that, Kenneth? Yes. Almost on target this time. Hardly. Liverpool and Manchester United. These forwards couldn't hit a barn door with a banjo. Well, Oxford might be only in third division now, but who knows what the future might bring. Perhaps we'll be welcoming Liverpool and Manchester United here one day. Kenneth looks around with a look of distaste. Well, if that ever happens, I hope they'll upgrade the stadium. This place is crumbling. You should see the restroom. Robert hastily tries to change the subject. Did you enjoy playing soccer as a boy? I played a little. You did they play soccer back in Czechoslovakia? Yes, yes we did. A long time ago now. Robert doesn't like talking about his childhood. It's a reminder that many of the British still see him as an outsider. But enough about the past. I care about the future. Yes, I gather you're interested in the time. Robert's eyes light up with enthusiasm. You know, I've long harbored ambitions to get into the newspaper business. I had a chance 12 years ago when the sun and News of the World became available, but unfortunately those deals never got over the line. Rupert Murdoch beats you to them, you mean? But I feel much more positive about the Times and Sunday Times. I'd love to have the chance to secure their long term futures. Kenneth pauses for a moment, choosing his words carefully. Well, the Times and Sunday Times are very traditional newspapers, you understand? Absolutely. The most Prestigious names in the business. One might even call them old fashioned, especially in the boardroom. Robert's face falls. A person with my background may not be welcome. Is that what you mean? I'm sorry. Old fashioned. As I said, Robert frowns. It's the same old argument. People don't trust him to run a newspaper for the simple reason that he's from Eastern Europe. Well, if they're that old fashioned, no doubt they'll be familiar with a favorite phrase of mine I've somehow managed to learn during my time here. Beggars can't be choosers. Apart from the prestige of their history, in 1980, the Times and the Sunday Times had little going for them. Together, the two papers were losing £15 million a year. But Robert Maxwell was wrong if he thought no one else was prepared to take them on. Because after Robert went public with his intention to place a bid for the newspapers, so too did his old rival, Rupert Murdoch. By 1980, Rupert Murdoch would call upon more than a decade of experience in the British newspaper industry. He had resurrected his two tabloids, the sun and the News of the World, by concentrating on popular journalism that appealed to the masses. And Rupert had a plan to bring the Times back into profitability, too. He intended to reduce the newspaper's production costs by sharing them with his existing titles. That gave him an edge in negotiations that Robert Maxwell couldn't match. Still, when Robert found out that Kenneth Thompson had named Rupert Murdoch as his preferred buyer, he was furious. Robert was determined to find a way to block the sale. So he called on his old government colleagues in Westminster for help. Although Robert had lost his seat in the 1970 general election, 10 years prior, he still knew many members of Parliament. So he bombarded them with letters and calls about the Murdoch takeover of the Times, urging them to refer it to the Monopolies and Mergers Commission, which had the power to veto the sale. Robert claimed that the plan to combine newspaper operations would lead to thousands of print workers losing their jobs, and that owning four national newspapers would give Rupert Murdoch undue influence over British public life. But Robert's attempts to block the sale came to nothing. As a former labor politician, Robert had less influence on the Conservatives who formed current Prime Minister Margaret Thatcher's government. And in February 1981, parliament voted to let Rupert Murdoch buy the Times and Sunday Times without going through the Monopolies and Mergers Commission. A few days later, the deal was done. And now, with four national newspapers under his control, Rupert Murdoch was Britain's most powerful media mogul. Robert was left on the sidelines once again having struck out a third time. For the moment, he was out of the newspaper game. So he decided to get into another. In 1982, Oxford United Football Club announced that it was teetering on the edge of bankruptcy. The soccer team was in debt and couldn't afford the interest payments it needed to stay afloat. Robert had always been a fan of the game and he knew it was by far the most popular sport in Britain. So he saw Oxford United's woes as a dual opportunity. A chance both to buy his own soccer club and to improve his reputation as a true Brit. So just before Oxford United went out of business, Robert stepped in. The rescue package saved the 90 year old club and made Robert a local hero in Oxford. As the team's new chairman, Robert had ambitions of taking the club into the first division, where they'd play alongside other top teams like Manchester United and Liverpool. But after Robert's takeover, the club continued to perform poorly, both on the pitch and on the balance sheet. To bring the club back into the black and have any hope of achieving his ambitions, Robert came to the conclusion that he would have to do something radical. He decided that the problem was Oxford itself. The city was home to only 150,000 people and in Robert's eyes, that was not enough to support the top flight professional sports team. He imagined Robert couldn't expand Oxford's population, so he came up with another solution to build his club's fan base 25 miles to the south. Reading Football Club was another team also close to going bankrupt. Robert decided that the best way to guarantee the future of both clubs was to merge them. So he reached out to his counterpart at Reading, chairman Frank Waller. Frank agreed to sell his shares to Robert and after this deal was done, the two clubs would merge. At the start of the next season, Oxford United and Reading would be no more. They would be replaced by a single club with a much larger geographical footprint, Thames Valley Royals. Robert's plan made business sense, buying a competitor to scale up and take advantage of a bigger, more lucrative market. But Robert did not seem to understand that sports did not follow the usual rules of business. Both soccer teams had decades of history and tradition behind them. And when news of the merger was announced, it was met with disbelief both in the stands and in the locker rooms. Oxford United's players were as shocked by the announcement as the rest of the country. Robert tried to reassure them that no players would be laid off, but few believed him. It was unrealistic to expect two teams to merge into one, and for there to be no casualties. Plus, the end of the season was only a month away, and Robert hadn't offered new deals to any players whose contracts were were soon set to expire. The players quickly realized that despite Robert's warm words, many of them would soon be out of a job. But the skepticism of the players was nothing compared to the condemnation of the two club's fans. They'd spent entire lifetimes following their teams, and now Robert expected them to switch allegiances and embrace their local rivals. Fans of both Oxford United and Reading organized protests, and public opinion was universal in its denunciation of the scheme. But Robert refused to reverse course. As far as he was concerned, the merger had to occur. Otherwise both clubs would fold. And since there were few other professional soccer teams in the area, Robert suspected that the disgruntled fans would return after they'd cooled off. But there was one group of critics that Robert could not ignore. Redding's shareholders. Robert had made a deal with Reading's chairman, Frank Waller, and two other board members and thought that was enough to give him controlling interest of the club. But he was wrong. Former Reading player turned businessman Roger Smee had recently tried to buy the club himself, so he knew the stock holdings of every board member. He was certain that Frank Waller did not have the legal right to sell some of the shares that Robert was about to buy, and he went to court to prove it. Six days after Robert's plan went public, Roger Smee obtained an injunction delaying the deal until the legality of the transaction had been fully investigated. And as those opposing the merger grew in number, Robert Maxwell realized that he had miscalculated. He could fight the injunction in court and continue with his plans, but he decided against it. In the days that followed, Robert quietly withdrew from the deal to buy Redding, and the merger was dead. Robert was certain both clubs would soon have to close. But then something surprising happened. Oxford United went on a run of good games the following season. The team won a promotion to a higher league after being crowned champions of the third division. The merger debacle was seemingly forgotten amid the celebrations, and Robert was celebrated as the man who'd brought the youth success at last. And for one of the first times in his life, Robert felt truly accepted by the people of Britain. This triumph gave Robert renewed confidence to pursue the dream he'd been chasing for more than a decade. He'd been turned down by the owners of the News of the World, the Sun and the Times. He'd been insulted and outmaneuvered and worse. Only one man had bested him on every occasion. But now it was Robert, not Rupert Murdoch, who was on a winning streak and he was about to push for his greatest victory yet. Klaviyo powers smarter digital relationships for more than 151,000 successful brands, including Headley and Bennett, Fishwife and Dagny Dover. Klaviyo's unified data and marketing automation platform turns your customer data into personalized connections to make every moment count across AI powered email, SMS analytics and more. Build smarter digital relationships with your customers. Visit klaviyo.com to make every moment count. It's early 1984 in London, three years after Robert Maxwell missed out on the chance to buy the Times Newspaper group. The now 60 year old Robert climbs the steps of the exclusive Kennel Club in the upscale Mayfair district and heads for the members only bar. Robert isn't much of a dog lover, but he takes lunch at the Kennel Club every few weeks with a friend who is Bob Edwards, who waves from a nearby table. Hey, good to see you, Bob. Robert makes a show of bending down to pat a dog that's resting on the floor at Bob's feet. And good to see you too, boy. Robert, a pleasure as always. Please have a seat. Robert enjoys his lunches with Bob, but he also has an ulterior motive for these meetups. Bob is an experienced journalist and for the last few years he sat on the board of Mirror Group Newspapers, the publisher of the Daily Mirror and Sunday Mirror. Robert is still set on buying his way into the newspaper trade and the gossip he gets from Bob keeps him up to date on the goings on in the industry. Robert gets straight down to business as a waiter pours him a glass of water. So how's life at the Mirror? Same as usual. Infighting, arguing. You know, I thought editing a national newspaper would be the toughest job of my life, but it turns out that's a piece of cake compared to serving on the board. Well, welcome to my world. No one agrees on anything. It's so frustrating. There's so much potential going to waste. And the balance sheet, how's that looking? You can tell me. Well, we're making 200 million in revenue. Well, that's phenomenal. But we're barely making a profit. Costs are out of control. It sounds like you've got a solid business that's not being managed well. What does the board have in mind to turn it around? That's the issue. Half of the directors want to go public and get new investment, but half of them think it's time for new ownership. The owners have made it pretty clear they'll sell if get a decent offer. Robert's ears prick up at the mention of this. Have they received any bids so far? Not even one. Not even from Murdoch. That's a surprise. I don't think that man would be happy until he owns every newspaper in England. Well, what about you, Robert? You've told me plenty of times you want to get into newspapers. Robert leans back and feigns disinterest. Oh no, not me, not again. I've been stung three times by Murdoch. I think. I think I'm going to sit this one out. When word got out that Mirror Group Newspapers was up for sale, Robert Maxwell shocked the business world by not showing a flicker of interest. But it was all an act. Robert had been outmaneuvered by Rupert Murdoch once too many times and was not going to make the same mistakes again. This time, Robert was prepared to wait. Robert Maxwell was convinced that his past attempts to enter the newspaper business had only been foiled by xenophobia and closed mindedness. It was an attitude that frustrated Robert. He considered himself as British as the next man, but had to concede that not everyone felt that way. So if he was finally going to buy a newspaper, he'd need to swallow his pride and concentrate on winning hearts and minds. So in the spring of 1984, Robert began a calculated behind the scenes campaign to convince those who still doubted him. While still denying any interest in purchasing the Mirror Group, he met with other members of its board, presenting himself as a trustworthy and successful entrepreneur that anyone would be happy to do business with. One of his favorite venues for meetings was the House of Parliament. As a former labor representative, Robert still had a pass entitling him to take guests there. And the grand setting was the perfect place for a charm offensive. And while Robert conducted this clandestine campaign, he kept a close eye on the movements of his enemy. He was convinced Rupert Murdoch was just waiting to pounce. But during his regular lunches at the Kennel club, Robert's friend Bob Edwards continued to reassure him that there had been no contact between Rupert and the Mirror Group. So after months of cloaking his intentions, Robert finally decided to make a move. On July 4, 1984, he called a press conference to announce a formal bid of £80 million for Mira Group Newspapers. It was a generous offer. The Mirror Group was valued at under 50 million, barely half what Robert had offered. But the newspaper's owner, the conglomerate Reed International, turned Robert down. They insisted that they had no intention of selling. But thanks to his insider Info from Bob Edwards. Robert knew that wasn't true. At least half of the Mirror Group board did want to sell. So three days later, Robert increased the pressure on the divided company. He invited Les Carpenter, CEO of Reed International, to dinner at the Ritz Hotel in London. There, Robert increased his offer to 100 million pounds, but told Les that the offer was time limited. If he didn't agreed to a deal there and then, Robert would walk away. Les was not about to fold that easily, though he had intelligence of his own and knew that Robert was desperate to buy. So even though Robert's new proposal was more than double the value of Mirror Group Newspapers, Les pushed for the price to go even higher. Robert upped his bid, first to 107 million, then one last time to 113 million. Finally, the two men shook hands on a deal for a price of around half a billion dollars in today's money. Robert Maxwell was the new owner of Mirror Group newspapers. And after 15 long and frustrating years, Robert had finally succeeded and bought a newspaper. He'd done it by defying his instincts rather than launch a grand takeover bid with plenty of fanfare. This time, Robert worked quietly in the background, preparing the ground properly until the time was right to move. But despite the success of this new tactic, Robert had not abandoned his old ways completely. As Robert left the meeting at the Ritz Hotel at nearly midnight, Les Carpenter had one last request. He knew Robert had waited a long time for this moment, but Les asked him to delay announcing news of the sale until it could be done properly in the morning. Robert smiled and agreed, but had other ideas. Ideas. As soon as Les departed, Robert jumped into a car and headed for the Mirror Group offices. He intended to take immediate possession of his newest acquisition and couldn't bear to wait a moment longer. Robert Maxwell was a media mogul at last, and he intended to use the Daily Mirror to complete his transformation from Czechoslovakian refugee to Britain's most famous entrepreneur. From Wondery, this is episode two of the Missing Mogul for business members. On the next episode, Robert Maxwell continues to expand his business empire, but soon discovers that running a newspaper is more complicated than he expected. 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 Robert Maxwell, we recommend the Mystery of Robert Maxwell by John Preston Maxwell, the Outsider by Tom Bower, and Maxwell's Fall by Roy Greenslade. This episode contains reenactments and dramatized details. And while in most cases we can't know exactly what was said, all our dramatizations are based on historical research. Business Movers is hosted, edited and executive produced by me, Lindsey Graham for Airship Audio editing by Mohammed Shazi sound design by Gabriel Gould music by Lindsey Graham. This episode is written and researched by Scott Reeves. Executive producers are William Simpson for airship and Erin O'Flaherty, Jenny Lauer Beckman and Marshall Louie for wondering for more than two centuries, the White House has been the stage for some of the most dramatic scenes in American history. Inspired by the hit podcast American History, tellers Wondery and William Morrow present the new book, the Hidden History of the White House. Each chapter will bring you inside the fierce power struggles, the world altering decisions and shocking scandals that have shaped our nation. You'll be there when the very foundations of the White House are laid in 1792, and you'll watch as the British burn it down in 1814. Then you'll hear the intimate conversations between FDR and Winston Churchill as they make plans to defeat Nazi forces in 1941. And you'll be in the Situation Room when President Barack Obama approves the raid to bring down the most infamous terrorist in American history. Order the Hidden History of the White House now in hardcover or digital edition. Wherever you get your books.