Business Movers Howard Hughes Blows Up Hollywood | Selling Scandal | 3
Aug 14, 2025
Howard Hughes takes bold risks to transform RKO Pictures, facing skepticism from industry veterans. He implements aggressive cost-cutting and aims for high-budget films, all while navigating fierce resistance. The fallout from actor Robert Mitchum's drug arrest becomes a marketing opportunity, revitalizing both his and the studio's fortunes. Additionally, Hughes's tumultuous relationship with Ingrid Bergman during the challenging production of 'Stromboli' highlights the intertwining of scandal and creativity in Hollywood.
AI Snips
Chapters
Books
Transcript
Episode notes
Bold Buy For Control
- Howard Hughes bought Floyd Odlum's 24% share in RKO for $9.50 a share, gaining control of the studio in May 1948.
- The purchase cost about $8.8 million then, roughly $120 million today.
Power Through Boardroom Maneuvers
- Hughes built control by courting shareholders and forcing boardroom resignations to consolidate power.
- He turned RKO from a dispersed company into one he could reshape personally.
Pair Cuts With Revenue Plan
- Cut costs decisively when a company is hemorrhaging cash by halting weak projects and trimming staff.
- But pair cuts with a clear plan to replace lost revenue sources or audiences.
