Messier's departure signaled that Vivendi was not only facing a major overhaul of its senior management but also a restructuring of its board.
For Vivendi right now, step one was clear: elect a new board!
From there, the board would need to make strategic decisions that fit the current situation, and based on those decisions, choose a suitable CEO to lead Vivendi out of its mess.
With Vivendi's stock price tanking, picking a new board was urgent. Just two days later, they dropped the news.
Jean Fortou, a well-known French business tycoon and chairman of Aventis Pharmaceuticals, would step in as Vivendi's new board chairman.
At the same time, Vivendi appointed two new directors, including Claude Bébéar, the honorary chairman of AXA Insurance. Bébéar had long opposed Messier and was sidelined because of it, but now he was back, spearheading Messier's ousting and the company's strategic overhaul.
This whirlwind of moves was all about winning back investor confidence.
But clearly, it wasn't enough!
After stepping down, Messier faced scrutiny from the authorities and even the risk of jail time.
Investors were dumping stock like crazy, convinced the company was on the brink of bankruptcy.
Without a new CEO in place, Vivendi had to keep moving fast.
On July 5, the new chairman, Jean Fortou, announced a series of measures on behalf of the board to turn things around: an immediate restructuring plan, asset sales, and debt reduction.
These moves, though, would likely tear apart Vivendi, the global media giant.
At 63, Jean Fortou was cut from a different cloth than the younger Messier. He came from traditional business, steady and pragmatic, focused on efficiency, profits, and returns—not the market potential or trendy industries that newer managers chased.
Fortou's plan was crystal clear: shed unstable assets and double down on telecom.
Telecom might not have the glitz of the internet or media, but it offered reliable returns and steady income.
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That same day, Hollywood's first IMAX film, Pirates League: Curse of the Black Pearl, hit theaters across North America!
After days of buzz from critics, the IMAX version had sparked serious curiosity and excitement among fans. Just as Dunn predicted, all 75 IMAX theaters in the U.S. were practically sold out for every show!
Regular theaters have multiple screens and auditoriums, but IMAX theaters usually have just one IMAX screen. In this case, Pirates League: Curse of the Black Pearl completely dominated those screens.
Regular tickets cost $5.99, while IMAX tickets were $7.99. Even so, the IMAX version was the go-to choice for moviegoers!
It was a Friday, and Pirates League: Curse of the Black Pearl was the only new film hitting theaters that day.
Two days earlier, on July 3, Sony's Men in Black 2 and Fox's Like Mike had premiered. Some media speculated they might dent Pirates League's box office.
But the results?
On its opening day, Pirates League: Curse of the Black Pearl raked in $36.5 million.
That's less than half of Spider-Man 2's opening day, but let's not forget—this was an original project and the first in its series!
Those box office numbers were plenty impressive.
At the very least, the film had the potential to crack $100 million in North America in its opening week!
It also suggested that the film's $140 million budget could likely be recouped through North American ticket sales alone.
For Dunn Films' big-budget productions, that might not sound like much, but across Hollywood, those numbers were stellar.
The IMAX theaters' earnings were especially exciting.
That day, the IMAX version of Pirates League: Curse of the Black Pearl played 412 screenings, averaging 218 viewers per show, pulling in nearly $720,000 in ticket sales!
Sure, the conversion and print costs for IMAX films were steep, but the opening day numbers from IMAX theaters were thrilling.
If this kept up for 10 days, they'd break even!
In terms of cost-effectiveness, IMAX films couldn't yet match standard releases, but business folks have sharp eyes. Those opening day figures would definitely catch the attention of theater chains and Hollywood distributors, showing the potential of IMAX movies.
Plus, this was the first IMAX film. The DMR conversion tech and cost management were brand new.
Over time, as the process matured, DMR conversion and print costs would drop.
The future looked bright!
It's fair to say Pirates League: Curse of the Black Pearl fired the opening shot for IMAX films!
---
On July 6, a Saturday, Dunn made a rare trip to the office.
Normally, he'd spend weekends dating all sorts of beautiful women or hitting up Hollywood parties to unwind—pure enjoyment.
But these were special times, and Dunn was buckling down.
As for execs like Bill Mechanic and West Cotton, forget it—their vacations rarely topped 10 days a year!
Weekends off were for entry-level staff. Senior execs? Rest wasn't in their vocabulary.
Part of it was their sense of duty, ambition, and passion for the job. The other part? Money.
Take Bill Mechanic: his annual salary was around $15 million—$5 million base pay, with the other $10 million tied to performance.
The harder you work, the more you earn!
Look at DreamWorks' chairman and CEO, Jeffrey Katzenberg. The guy sleeps four hours a night and works over 18 hours a day—near insanity.
"The negotiation team can move now. We've got two months to close Universal!" Dunn said in a meeting with a few top execs.
Brandy Norris chimed in, "Two weeks ago, I reached out to Goldman Sachs, Citigroup, and Lehman Brothers. They'll jointly handle this acquisition…"
Dunn cut in, "Our goal is to acquire Universal Pictures, Universal Music, and Blizzard Entertainment. But I've heard… Vivendi might bundle USA Network with Universal Pictures. We need a contingency plan."
Brandy paused, "So, we'd accept that?"
Dunn was firm. "No matter what, we have to secure Universal Pictures, Universal Music, and Blizzard. Whatever obstacles come up, we push through!"
Tosca Musk spoke up, "Looking at Vivendi's entertainment divisions, Universal Music is easily the weakest. With the internet booming, the music industry's fading fast. Next is Houghton Mifflin Publishing. Even as the world's third-largest publisher, the publishing industry's on a downward trend. Then there's Blizzard Entertainment. Blizzard's founders… they're a headache. Vivendi thought they'd surpass EA and become the world's top gaming company within three years. But Blizzard's games keep getting delayed, and Vivendi's management firing some of Blizzard North's execs hasn't helped."
Blizzard's got a big name, with classics like Diablo and Warcraft.
But Blizzard's leadership—those founders—have an artist's vibe. Even when a game's ready to launch, they'll delay it over tiny flaws.
That's hurt Blizzard's reputation and thrown off Vivendi's broader strategy.
Of course, there's a silver lining.
Blizzard's perfectionism is what makes their games stand out.
Dunn frowned. "Houghton Mifflin Publishing? I'm not interested in publishing!"
Bill Mechanic added, "Negotiation tactics matter. These days, hardly anyone wants to touch a music company. Vivendi's desperate to offload that hot potato—we should use that to our advantage."
By leveraging Vivendi's eagerness to ditch Universal Music, they could gain leverage in talks.
At this point, Dunn Films had to avoid seeming too eager for Universal Music.
Dunn nodded. "Bill, Brandy, you both have tons of M&A experience. I'm leaving the negotiations to you. You know what I want. Spending a bit more is fine—just make sure we get what we're after!"
Tosca Musk asked, "Vivendi's got some internet assets too, like mp3.com and that Sony joint-venture e-commerce site."
"Nope," Dunn shot back instantly, then added, "I'd rather buy a publisher than touch those junk internet assets!"