第 10 章
The Fall of Walter Yetnikoff: From King of Records to Industry Outcast
After firing Dick Asher in 1983, Walter Yetnikoff's power at CBS Records reached new heights. He negotiated an astonishing $28 million deal to sign the aging Rolling Stones from Atlantic Records-double what Ahmet Ertegun had offered. By late 1983, CBS Records was posting record profits-up 600 percent over 1982 with only a 6 percent increase in sales, largely due to Asher's cost-cutting measures.
Michael Jackson's Thriller became an unprecedented phenomenon, selling 38.5 million copies worldwide with 20 million in the US alone-reaching one in every 4.25 American households. Seven of the album's nine tracks went top ten, with "Billie Jean" staying at number one for seven weeks. After Jackson won seven Grammy Awards in February 1984, he brought Walter on stage, cementing Yetnikoff's position as Jackson's "rabbi."
Walter's personal life, however, was unraveling. After 25 years of marriage to June Horowitz, Walter began an affair with his secretary Debbie Federoff. When June discovered the relationship, the Yetnikoffs soon separated. Shortly after, Walter became involved with Lynda "Boom-Boom" Emon, a 31-year-old blonde introduced to him by his publicist.
By 1985, Walter was so powerful that when he threatened to leave for Warner Bros., CBS offered him an unprecedented contract with a $250,000 signing bonus, $475,000 base salary, and a clause allowing him to spend 10% of his time producing films. Despite his success, Walter obsessed over his compensation, envying entrepreneurs like David Geffen and Irving Azoff. "I want to get richer," he told Federoff, perhaps driven by what he called "the immigrant fear" that "we're all going to go back and live under the subway tracks in Brooklyn."
When billionaire Larry Tisch acquired 25% of CBS through his Loews Corporation in 1986, Walter initially saw him as a natural ally. Tisch, a militant Jew who wore a Magen David in his lapel, seemed compatible with Walter's ethnic pride. But their relationship quickly soured as Tisch proved immune to Walter's tantrums. The frugal Tisch eliminated the corporate jet, closed Walter's private dining room, and was appalled by Walter's profane Esquire profile where he called indie promoters "mensches."
Despite their growing animosity, Tisch presented Walter with an opportunity for his long-desired "big score" when he indicated CBS Records could be sold. Walter orchestrated a deal with Sony, securing himself a $10 million bonus plus equity. After the October 1987 stock market crash eliminated Tisch's alternative plan of a public offering, he became eager to secure Sony's cash offer. The deal brought Walter over $20 million, plus $30 million in bonuses for hundreds of employees.
With his newfound power, Walter orchestrated the removal of CBS Records U.S. head Al Teller, replacing him with Tommy Mottola-Walter's close friend and a client of Allen Grubman. Walter's feud with Tisch intensified into open warfare, culminating in dueling lawsuits and a dramatic walkout at the May 1988 CBS shareholders meeting where Walter called Tisch "cheap" and claimed he had threatened him with physical violence.
By mid-1989, Walter's alcoholism had reached a breaking point. In August, he checked into the Hazelden Clinic. Though he emerged sober in September claiming spiritual renewal, he was actually more unstable than before. He began destroying relationships he had carefully cultivated for years-attacking Bruce Springsteen for participating in an Amnesty International tour and making vulgar remarks about his divorce.
Walter also alienated attorney Allen Grubman, whom he had once "created." Most disastrously, he enraged David Geffen by refusing to release a Michael Jackson track for Geffen's "Days of Thunder" soundtrack, making crude homophobic remarks in the process. Geffen, who had served as an unpaid business adviser to Jackson for years, began undermining Yetnikoff's relationship with the star.
By August 1990, The Wall Street Journal reported that Yetnikoff's relationships with key artists had soured and that he would gradually phase out his duties. Though Walter attempted damage control, Sony president Norio Ohga flew to New York for an intense meeting with Yetnikoff, warning him that his crude behavior and vendettas must stop immediately. But insiders believed this was merely procedural-Ohga had already decided to force Walter out.
On September 4, 1990, Sony announced Yetnikoff's departure after fifteen years leading CBS Records. David Geffen reportedly called Irving Azoff saying, "Ding dong the witch is dead," later summarizing: "Walter slit his own throat." Yetnikoff received about $25 million in severance, doubling his net worth, and started a new company called Velvel Musical Industries. On January 1, 1991, CBS Records officially became Sony Music Entertainment, marking the final transformation of Goddard Lieberson's once-venerable company.
The rise and fall of Walter Yetnikoff perfectly encapsulates the music industry's evolution from the 1970s through the 1990s-a business that became increasingly driven by ego, excess, and deal-making rather than artist development and musical innovation. While Walter had won his personal battle with Larry Tisch by orchestrating the Sony sale, his leadership had severely damaged CBS Records. By 1989, Warner's share of top pop albums exceeded 40% compared to CBS's 16%, exposing Walter's A&R weaknesses. The industry he helped create-one that prioritized power over artistry-ultimately consumed him, just as it had consumed so many others before him.
