COMPANY TOWN : Michael Fuchs Sure to Stir the Pot Again

Michael Fuchs will eat lunch in this town again--and likely at the best restaurants.

He may have crossed his boss and stepped on the wrong toes. But when has that ever worked against anyone in the entertainment industry?

Although his defiant, bad-boy behavior may make the former Time Warner executive persona non grata at several companies, personnel experts say those characteristics and the recent negative press he’s engendered won’t count against him in landing another job.

“The most successful people in this business weren’t necessarily always the most beloved,” says Stephen Unger, partner and managing director of the entertainment and communications practice of Spencer Stuart, one of the largest entertainment executive search firms. “Being a tough, hard-edged practical business person is an advantage.”

And as for being canned? “Being fired is almost a seal of approval,” Unger assures. “It doesn’t carry the same stigma it did 20 years ago.”

It certainly had no negative impact on Jeffrey Katzenberg, to name a notable example. Katzenberg, who was overthrown by his former Disney boss Michael Eisner for lobbying too hard for the presidency, is more prominent than ever in his $2-billion venture DreamWorks with David Geffen and Steven Spielberg.

Fuchs was ousted two weeks ago as head of Warner Music Group (after six short months) and Home Box Office after running afoul of his boss, Time Warner Chairman Gerald Levin. Fuchs opposed the pending merger of Time Warner and Turner, and was upset about what his diminished role at the combined company would be. In the process, he became a thorn in Levin’s side.

But his abrasive style alienated him from many subordinates and colleagues at Warner Music. Unlike at HBO, Fuchs failed to inspire the kind of loyalty he demands and was loathed by some music executives because of his heavy-handed style.

Yet, his track record as a gifted executive is hard to dispute. His visionary leadership at HBO made the company the industry’s most successful pay TV channel.

“He’s the quintessential impact player,” says Unger. “A guy like Michael Fuchs will benefit because he has an extraordinary track record as a builder.”

Fuchs, who was vacationing in Paris following his ouster, would not comment. But sources close to him said the executive has already been approached with job offers.

“His timing couldn’t be better,” says William D. Simon, managing director of worldwide entertainment and media division of Korn Ferry International. “There’s a lot of action out there with telephone companies trying to enter the [entertainment] business and in the interactive area.”

Simon said Fuchs could easily take an entrepreneurial path as Barry Diller is doing with the Silver King Communications TV station group or as the DreamWorks partners are doing with their new studio.

He could raise seed money of his own, though probably less than Diller or the Dream Team. Sources say he will get a multimillion dollar severance package from Time Warner, although industry insiders say it will be far less than the $60 million figure that is being floated.

Most peg Fuchs as a corporate animal who will probably wind up at an existing company and supposedly wants a top level post at one of the major studios. Some question whether Fuchs has the right skills to run a studio, because he has no experience in the feature film arena. And he might not fit with certain Hollywood corporate cultures.

For instance, MCA, Disney and Viacom are unlikely homes for him. The new team at MCA, headed by Seagram chief Edgar Bronfman Jr. and former CAA co-founder Ron Meyer, prides itself as a little shop of nice guys. At Disney, between Michael Eisner and Michael Ovitz there probably isn’t room for another huge executive personality. And Fuchs probably wouldn’t work for Viacom Chief Executive Frank Biondi. Fuchs took Biondi’s job at HBO years ago when Biondi was forced out.

As for the Hollywood majors, that leaves Twentieth Century Fox, Sony Filmed Entertainment and MGM/UA. The most logical fit among them, sources agree, is Fox, where News Corp. chief Rupert Murdoch could benefit from a take-charge executive such as Fuchs. Despite the strength of new stations and the National Football League games, ratings at the Fox Network are no better than last year. Fox’s movie division is floundering despite a hit here and there. Murdoch could tap Fuchs for the No. 2 slot that has been open since Barry Diller left in 1992--although sources are skeptical whether their forceful personalities would mesh.

There also is speculation that billionaire Ron Perelman could use Fuchs to help manage his sprawling entertainment enterprises. Perelman’s Marvel Entertainment comic book company has lost two-thirds of its value since 1993.

New World Communications Group has also disappointed investors since the television stations made their highly publicized switch from CBS to Fox. Fuchs has an existing relationship with Perelman as a Marvel board member and is thought to want to stay rooted in New York.

Entertainment headhunter Unger--whose firm is retained by companies, not individuals--said he would advise Fuchs to:

* “Pause. Take seven or eight deep breaths and go through a period of introspection. Regardless of how good a job you’ve done, even the strongest egos in the world would be jolted by what happened.

* “Ignore the first half-dozen opportunities presented to you regardless of what they are.

* “Reassess how you want to spend your time. Prioritize what you want and decide what kind of people you want to avoid.”

Korn Ferry’s Simon predicts a very “unexpected outcome” three to six months down the road for Fuchs.

“It’s something that will even surprise Fuchs,” he says.

And, to be sure, added Simon, “He’ll stir up the pot.”

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Michael Fuchs

Age: 49

Background: Born in the Bronx but enjoyed a privileged upbringing in Westchester, N.Y. Bachelor of Arts degree at Union College in Schenectady, N.Y., and law degree from New York University, but apparently missed Dale Carnegie’s “How To Win Friends and Influence People.”

Career Highlights: Joined HBO in 1976 and became chairman in 1984, building the company into the industry’s darling pay television channel. Relied on tough-guy Bronx bravado to wipe out “unstable forces” at the Warner Music Group by firing several top managers.

Attributes: Smart, visionary, aggressive, gutsy, confident

Flaws: Arrogant, egomaniacal, confrontational, self-destructive, cold-blooded