In mid-October, the artist management company headquartered on Wilshire Boulevard in Beverly Hills officially announced its bankruptcy and would merge with Nancy Josephson's ICM. The aging Michael Ovitz and Martin Bob also fully retired.
However, this news barely attracted Hollywood's attention; even Duke merely glanced at it before moving on.
From the day ICM, CAA, and William Morris reached an agreement to poach clients from the artist management company, such an outcome had already been destined. In reality, Michael Ovitz and Martin Bob had effectively exited the Hollywood stage three years ago; the so-called "Hollywood emperors" had long become irrelevant.
Most of the company's main clients and potential clients had already been scooped up by the other three agencies, leaving only an empty shell long ago.
Such a weakened competitor could not capture Duke's attention. Michael Ovitz and Martin Bob left Hollywood in a fallen state, which was merely part of the inevitable old-to-new transition within the industry.
Although they had competed with him for years, knowing Duke's personality, he had no interest in mocking the two old men. This was not a life-or-death duel; he had already been the victor many years ago and naturally did not concern himself with them.
Every myth eventually shatters. The false halo promoted by the media also fades with time.
Not just in this lifetime, even in another of Duke's lifetimes, countless real events proved that anyone claiming Michael Ovitz could control Hollywood had serious issues.
Compared to the silent end of Michael Ovitz and the artist management company, another piece of news was sensationalized by the media, sending Hollywood stars into panic.
After a lengthy investigation, the British government announced an official inquiry and hearing into News Corporation. The "phone-hacking scandal" could no longer be concealed. News Corporation and Rupert Murdoch became universal targets of public outrage.
The media revealed that the residences and phones of multiple Hollywood stars, including mega-stars like Tom Cruise, had been hacked. However, Duke had long understood the bottomless reality of so-called fair and just news outlets and had taken targeted measures long ago.
Nonetheless, the scandal involved Duke's film crew. Sienna Miller, playing Miranda Tate, was a primary victim. To avoid disrupting filming, Duke adjusted the schedule, postponing all Miranda Tate scenes until Sienna Miller resolved these issues.
Although not enough to topple him, Rupert Murdoch's empire trembled in the storm. The century-old tabloid News of the World died prematurely, a former Downing Street press official was taken away by police, and the Prime Minister's eyes revealed unease… as a popular tabloid phrase put it: "The Death of News of the World Shocks the World."
But this was not the story's conclusion, only the beginning of a new chapter.
And it all started with a prince's knee.
Five years ago, the story of the Duke of Cambridge William's knee injury was exposed by News of the World. Only a few insiders knew of it. Where did the tabloid get its information?
Thus, the phone-hacking scandal touched the royal family.
The British royal family had indeed declined, yet no one could underestimate the power of the Windsors. Those who did, like Diana or Murdoch, paid the price.
From the UK to North America, media not affiliated with News Corporation almost universally attacked the fallen giant. Such an opportunity to crush a competitor was far too rare.
Time Warner was no exception. Without communicating with other North American media groups, it tacitly joined the effort, applying pressure both publicly and practically on News Corporation. Even though these two media companies had collaborated before, when opportunity came, capital chose whatever benefited itself most.
Previously, Rupert Murdoch and News Corporation had tried to acquire Time Warner but failed, as the Federal DOJ's antitrust restrictions formed an insurmountable barrier.
The outbreak of the phone-hacking scandal forced Murdoch's acquisition plans to remain only on paper.
Moreover, other media groups pressured the federal government to split News Corporation into two entities: a media group and 20th Century Fox. Even though both would remain under Murdoch family control, they could no longer allow Rupert Murdoch the same absolute authority.
Capital competition never takes sides, only interests.
Like Walt Disney, whose internal relations were always difficult, an overly powerful News Corporation simply did not serve Duke's interests. He naturally wanted to see it split and was one of the Time Warner board members advocating suppression of News Corporation.
Rupert Murdoch originated in Australia, with News Corporation's headquarters spanning the UK and US. North America's major media groups had no inclination to help him; instead, they actively struck down the fallen giant more aggressively than anyone else.
In late October, the FBI's Los Angeles division and the LA County Police jointly arrested the famous "Hollywood Eye" Anthony Pellicano. With search warrants, they raided Pellicano's homes in Burbank, West Hollywood, and Orange County, seizing over $2 million in cash, some weapons, and thousands of hours of wiretap recordings.
Notably, during an investigation of Pellicano's emails, police found numerous correspondences with the New York Post, involving extensive wiretapping and scandalous incidents.
Subsequently, police held a press conference, presenting part of Pellicano's wiretap evidence. While specific celebrities were not disclosed, Hollywood instantly went on high alert.
The released evidence directly implicated the New York Post under News Corporation. This North American media-exposed scandal quickly spread worldwide.
Considering the phone-hacking scandal in the UK, it was easy for the public to imagine that hacking was nearly standard practice within News Corporation.
Just one day later, the FBI announced it would take over the Pellicano case. His emails with the New York Post involved not only Hollywood public figures but also some members of Congress and relatives of 9/11 victims!
9/11 remains an everlasting wound in North American public memory. With clear evidence implicating News Corporation, public outrage was predictable. Many families of 9/11 victims demanded federal investigation through major media outlets, prompting Congress to hold a special session.
Affected by this, News Corporation's stock plummeted. Market participants shorted its shares, and in just over a week, nearly ten percent of its market value evaporated. Evidently, several media groups, in alliance with Wall Street opportunists, ruthlessly suppressed News Corporation's stock.
The once-glorious News Corporation had completely fallen into turmoil.
As the investigation deepened, more and more UK and US celebrities appeared on News Corporation's wiretap list.
The UK's Scotland Yard and the US FBI subsequently released a list totaling 6,000 people who had been wiretapped.
Among them were UK royal family members Princess Eugenie and Princess Beatrice of York, Princes William and Harry, actress Sienna Miller, UK Secretary of State for Culture, Media and Sport Tessa Jowell and her husband, football stars Ryan Giggs and Paul Scholes, and so on.
In the US, victims included well-known actors Brad Pitt and Angelina Jolie, the famous band Linkin Park, families of fallen US soldiers, as well as several unnamed members of Congress and state senators.
The UK Parliament also held its first hearing on the "phone-hacking scandal." Murdoch and Wendi Deng appeared in person to face questioning. Just as the interrogation was nearing its conclusion, an unexpected incident occurred.
Live on television, a man wearing a plaid shirt, sitting in the last row of the gallery, suddenly stood up and quickly walked to the witness stand, holding a paper plate filled with shaving foam, which he hurled at Murdoch.
Everyone froze. No one realized they should stop the attacker—or perhaps no one truly wanted to. Murdoch seemed frozen in his seat, and the police did not immediately react.
At that moment, Wendi Deng leapt from her chair like lightning, flying forward, her right arm drawing an arc in the air, and her right palm struck the attacker hard in the face…
Thus, on live television, this old husband–young wife pair staged a "display of affection" in front of the entire Western audience.
Following the unexpected incident at the hearing, numerous media outlets quickly reported on Wendi Deng's heroic act. Some said she displayed extraordinary courage and deserved the title "Wife of the Year"; others remarked, "Wendi Deng's speed made the sluggish courtroom police look incompetent"; even The Guardian, under News Corporation, claimed she demonstrated the meaning of a model couple at the hearing.
Through television, the footage of Murdoch being attacked was broadcast to the public, effectively alleviating some of the government's and public's anger over the wiretapping scandal. The situation facing Murdoch and News Corporation improved to some extent. Some well-known PR professionals even suggested that hiring a famous American PR firm to improve the company's image was far less effective than Wendi Deng's single slap.
This was undoubtedly a brilliant example of crisis public relations.
However, North America's major media groups would never let go of such an opportunity to suppress a competitor. A weakened News Corporation served their interests best.
Two days later, the latest issue of Vanity Fair magazine published an anonymously mailed diary of Wendi Deng, revealing without reservation her affection for Blair.
...
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