LOS ANGELES, July 11 -- Lew Wasserman, the man who built MCA Inc. into an entertainment giant, announced Tuesday he is stepping down as chairman and chief executive officer. The 82-year-old Wasserman was named chairman emeritus of MCA and will be joining the board of directors of Seagram Co., which gained control of MCA last month. He will also remain on the MCA board. The move had been widely expected. It leaves Wasserman's posts vacant, although speculation has risen in recent days that Seagram CEO Edgar Bronfman Jr. will move soon to fill the positions, either by naming himself or a veteran studio executive such as Terry Semel, co- chief executive of Time Warner Inc.'s Warner Bros. studio. Semel has denied he is interested in the posts. 'The success of MCA and the business genius of Lew Wasserman are inseparable,' Bronfman said. 'As we build on the solid foundation of his achievements, we are gratified that he has made this continuing commitment to the company.' Wasserman's association with MCA began in 1936 when he joined what was then a talent agency called Music Corp. of America formed by Jules Stein. Wasserman expanded MCA's roster to include motion picture, radio, television and stage stars. In 1962, MCA became a studio by buying Universal Pictures, then called Universal International. In addition to boosting its movie business, Universal then became the leading supplier to television and boosted formats such as the mini-series, TV movies and specials. In 1973, Wasserman became chairman, succeeding Stein, and continued as CEO and named veteran executive Sidney Sheinberg to succeed him as president and serve as chief operating officer.
A key decision came the following year when Sheinberg suggested his unknown protege Steven Spielberg direct a feature film called 'Jaws,' which became the highest grossing film of all time until Spielberg made 'E.T. -- The Extraterrestrial' in 1982. Spielberg also made 'Jurassic Park' and 'Schindler's List' for Universal. MCA also expanded into the music, video and publishing businesses and developed the 'backlot tour' at Universal Studios Hollywood to compete with Disneyland in Anaheim, Calif. MCA later opened Universal Studios Florida as a rival to Walt Disney World in Orlando, Fla. 'As tempting as it is to reflect on the past, I've always had a tendency to look toward the future,' Wasserman said. 'And there is no question that in Edgar Bronfman Jr. and the Seagram organization, the future of MCA is in very secure hands.' 'As the company continues to grow, I look forward to working with people who share the passions, ideals and work ethics that I've been fortunate enough to practice these past 59 years.' The move comes a day after Seagram named Ron Meyer, president of Creative Artists Agency, to be president and chief operating officer of MCA. Meyer, who will join MCA on Aug. 1, replaces Sheinberg. Sheinberg is expected to take some sort of production job with an MCA-affiliated company. The announcements mark the end of Hollywood's longest-ever executive partnership. Wasserman and Sheinberg, 60, saw threats of takeovers from CBS, Carl Icahn and RCA during the 1980s and then survived through Matsushita Electric Industrial Co.'s five-year mostly unhappy ownership following its $6.6 billion buyout in 1990. Meyer, 50, is taking the job that many anticipated would go to his longtime partner at CAA, Michael Ovitz, who is widely regarded as the most powerful executive in Hollywood. But talks between Ovitz and Seagram broke down June 5, the day that Seagram assumed control of MCA through its $5.7 billion purchase of 80 percent of Matsushita's holding. Currently, analysts say the uncertainty about MCA's ownership and leadership may have left Universal Pictures and MCA Music at a disadvantage to rivals and its TV production is viewed as lagging. Universal has the nation's top film, 'Apollo 13,' in release and will roll out the most expensive movie ever made, 'Waterworld,' on July 28. In another development linked to Seagram's takeover, MCA motion picture group chairman Tom Pollock has been promoted to vice chairman of MCA, shifting him from the movie side to the corporate side of the business. Bronfman announced a deal last month for MCA to distribute movies from DreamWorks SKG, the new studio formed by Spielberg with veteran executive Jeffrey Katzenberg and music mogul David Geffen.
