Richard Parsons, Former Time Warner Chairman, Dies at 76

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Reflecting on the life and career of Richard Dean Parsons, I find myself in awe of his remarkable journey from Queens to the White House, Tuscany, and beyond. His ability to navigate through various industries, from law to banking to entertainment, with grace, intelligence, and resilience is truly commendable.

As a devoted admirer, I’m sad to share that Richard Parsons, once the venerable chairman of Time Warner, has departed from our world this Thursday at the age of 76. Known for his calming influence, he was often called upon to navigate turbulent waters in organizations such as CBS Corp., Citigroup, and the Los Angeles Clippers when they were facing challenges.

Parsons passed away at his residence in Manhattan due to bone cancer, as confirmed by Ronald S. Lauder, a fellow board member and close friend, to The New York Times. Over the years, he had also been fighting against multiple myeloma, a particularly aggressive type of blood cancer.

In September 2018, Parsons assumed the role of interim chairman at CBS, taking over after Leslie Moonves, who was both chairman and CEO, stepped down due to sexual harassment allegations. Parsons played a crucial part in arranging Moonves’ departure, as well as appointing Joseph Ianniello as acting CEO. Additionally, he introduced six new members to the board of directors.

As a devoted admirer, I must share that despite an initial promising tenure, Parsons’ time with us was tragically short-lived. On October 21st, he made the difficult decision to step down from his position due to a sudden deterioration in his health. You see, Parsons had been in remission for multiple myeloma since undergoing a stem cell transplant in 2016. Unfortunately, this resilient spirit was faced with an unexpected challenge.

Parsons, for several years, held the top position among African Americans working in media companies, a title he often chose not to emphasize. Instead, he encouraged young African Americans to seize new possibilities coming their way.

In 2016, he told Fortune magazine, “The only limit is the sky itself.” He explained that barriers which were once seemingly insurmountable, particularly a generation or two ago, no longer exist. There remain structural issues within our society that require addressing to ensure fairness, but today, one can rise from the lowest to the highest echelons of society, regardless of race, origin, creed, or sexual orientation.

The tall, commanding executive with a gentle voice was once a professional basketball player, an influential figure within the White House, a seasoned corporate lawyer, and a protégé of New York governor and U.S. vice president Nelson Rockefeller. He possessed an extraordinary ability to motivate others, yet he consistently expressed his belief that he lacked personal ambition.

He mentioned during an interview with The Hollywood Reporter in February 2018 that he is more of a type-B personality. This doesn’t mean he’s highly motivated, but rather he’s quite competitive.

In May 2002, he stepped into the public spotlight following his appointment as chairman of AOL Time Warner, a position he assumed during a time when the company was struggling heavily due to one of the biggest blunders in corporate history – the ill-fated merger between internet giant AOL and traditional media firm Time Warner.

At that point, he explained, they weren’t searching for a visionary or someone with charisma specifically, nor a candidate who aimed to emulate the stature of a tycoon. Instead, he pointed out, “It’s worth noting that I was the CEO who suffered the largest loss in the history of American corporations at the time. In my first annual report for the year 2002, we recorded a write-off amounting to $99 billion – an astounding figure.

As I found myself at the brink of my corporate journey in the late ’90s, my superior, Gerald Levin, Time Warner’s chairman and CEO, was contemplating a groundbreaking merger. Intrigued by the possibility of creating a legacy on par with that of our esteemed board member, Ted Turner, he seized an opportunity that presented itself unexpectedly. This chance came during a 50th-anniversary celebration of the Chinese Revolution in Beijing, where I happened to sit next to AOL’s CEO, Steve Case. It was this serendipitous encounter that sparked the idea of blending the old with the new, setting the stage for what would become an iconic union.

The discussions following the Levin-Case, upon their return to the U.S., gained momentum, and shortly thereafter, Levin shared his merger proposal with Parsons. Parsons described it to THR as not entirely devious, although Levin could be cunning on occasion.

Parsons admitted that he played a part in the disaster’s occurrence since he didn’t strongly oppose the merger when it was unexpectedly announced as AOL buying Time Warner. Wall Street was taken aback by this deal, and later, Parsons said, “History will show it was Jerry’s deal,” but ultimately, I supported it. I believed we could pull it off successfully.

It soon became apparent that the decision was incorrect. Following the announcement in January 2000, when the companies publicly agreed on their partnership and AOL revealed its intention to acquire Time Warner for approximately $160 billion, creating an entity valued at around $300 billion, events started deviating from the planned course.

Levin and Case thought that Time Warner’s content would significantly enhance AOL subscriptions; however, Parsons, who considered himself a traditionalist with limited computer and technology knowledge (“You don’t even like the internet,” his wife said to him), was unable to warn them that the rapidly evolving technological landscape would eventually render their idea obsolete.

He explained that AOL’s unique selling point was ‘We provide an exclusive online space, and there’s a subscription fee to access it – once inside, you can enjoy everything, so you’ll be content to pay us $14.95 monthly.’ However, the closed system approach was becoming less effective as more services were providing free content. This model ultimately crumbled.

Man, I can’t believe what happened to AOL Time Warner’s shares back then. They plummeted from a peak of $104 to just $10 within two years, erasing billions of dollars and costing Turner an estimated $2 billion. It was evident that Levin, with his reputation in shambles, had no choice but to leave, and he did so in 2002. The big question then became who would step up to take his place.

Instead of opting for an external candidate, the AOL Time Warner board chose Parsons as both chairman and CEO. Surprisingly, this individual, who claimed to be devoid of vision and barely capable of operating a computer, let alone steering a path through the digital era, turned out to be an excellent pick.

Straightaway, he disposed of certain AOL Time Warner holdings, swapped out key executives, yet above all, he conveyed an image of steadiness and assurance, a quality grounded in his thoughtful, compassionate demeanor – a warmth and relatability that he referred to as “wet,” in contrast to Levin’s “dry.

300 key employees were assembled, and Parsons invited General Norman Schwarzkopf, a prominent figure from the Gulf War, to address them. “Norman was queried about his principles of leadership,” Parsons explained. “He responded, ‘I have only two. Rule No. 1: When given authority, take control, make decisions. And rule No. 2 is: Act justly.'” Parsons then added, “I generally agree with that perspective.

In a move to sell AOL and revert the company back to its original name, Time Warner, he took action. He also appointed Jeffrey Bewkes, setting him up for succession when Parsons chose to step down in 2008. Bewkes continued in this role until recently, when Time Warner merged with AT&T, a decade later.

Parsons consistently expressed doubt that traditional and modern media could coexist harmoniously, despite his initial belief they might. He stated, “It’s not feasible to integrate them smoothly.” The pioneers of new media, he argued, approached business in a fundamentally different way, and when you get down to the basics, their mission was to undermine the traditional media industry.

Upon his departure, Parsons was acknowledged for revitalizing the brand significantly, despite minimal fluctuations in its stock price. He was referred to as “the steadying influence” that Time Warner required following the turbulence brought about by AOL, according to James Goss, managing director of Barrington Research. Furthermore, analyst Harold Vogel commented, “He was the ideal choice for the job at the opportune moment.

1948 saw the birth of Richard Dean Parsons in Queens, one of five offspring born to an electrical technician father and homemaker mother. Growing up, his academic prowess was evident; he skipped two grades during his early school years. However, as a student at the University of Hawaii, his performance wasn’t particularly outstanding.

Initially, it was said that he played basketball for the school, but later, both he and others refuted this claim. He humorously commented, “I might have been the least athletically talented student of my era.

The turning point came when the newlywed began his studies at Albany Law School, followed by an internship with the state legislature and later work for Governor Rockefeller, who took him under his wing. Notably, Parsons’ grandfather held a position as head gardener at the Rockefeller estate.

Following his graduation as the top student among 4,000 aspiring lawyers eligible to sit for the New York State Bar, he was subsequently hired by Rockefeller. Remarkably, he was selected as Vice President by President Ford during his appointment in 1974.

I stepped into a White House in turmoil after Nixon’s resignation, with Ford struggling to fill top staff positions from his own circle. In this predicament, he turned to Rockefeller’s team for assistance. This situation opened up a golden opportunity for me. I climbed the ranks, becoming the general counsel and associate director of what was then known as the Domestic Counsel. Throughout my career, I remained deeply respectful of Rockefeller, who later entrusted me with leading his charitable foundation.

Parsons resided at the White House for three out of the Ford administration’s four years before departing to find a position offering higher pay and more family time, given his expanding family which consisted of his spouse, Laura Bush (a child psychologist he met during his student days), a son, and two daughters, one of whom is transgender.

He worked for Patterson Belknap Webb & Tyler law firm until 1988, at which point he was appointed to manage Dime Savings Bank, a struggling institution. In 1991, Time Warner recruited him, and in 1995, he ascended to the presidency within the company. After ten years, he took over as its top executive.

After Parsons parted ways with the company, he found himself quite busy – more so than he had anticipated. He acquired a vineyard in Tuscany, Italy, with dreams of spending his retirement years there; however, fate had other plans. In 2009, he was approached by Citigroup following five consecutive quarters of losses and their need for $45 billion in government aid.

He was similarly brought in to help save the NBA’s Clippers following a scandal that broke out in 2014 when club owner Donald Sterling made racist remarks and was forced out. Then, he was named CBS’ interim chairman in the wake of the Moonves imbroglio.

Passionate about expanding educational prospects for underprivileged individuals, Parsons entertained the notion of vying for the position of New York City mayor but ultimately declined when he discovered he was unwell. Furthermore, he was offered a chance to serve as President Obama’s commerce secretary, which he also chose not to accept due to his ill health. His philanthropic commitments included chairing organizations such as the Jazz Foundation of America, the Apollo Theater Foundation, and the Smithsonian’s advisory board for its upcoming African American museum.

He carried on with his political endeavors, serving as chairman of a commission focusing on social security during President George W. Bush’s tenure, and participating in the transition teams of New York Mayor Michael Bloomberg and New York Governor Eliot Spitzer.

He leaves behind his spouse, their offspring, as well as a daughter born outside of marriage, who was conceived with model and humanitarian MacDella Cooper.

Parsons’ encounter with AOL had left him wary towards the Time Warner/AT&T merger, which was finalized in June 2018. In fact, he expressed caution about its prospects as early as two months prior. Even if the merger were to go through, he predicted that it would take longer than anticipated and face more challenges than people expected.

Stephen Galloway is dean of the Chapman University Film School.

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2024-12-27 00:25