Branson. Tom Bower
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Название: Branson

Автор: Tom Bower

Издательство: HarperCollins

Жанр: Биографии и Мемуары

Серия:

isbn: 9780007379835

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СКАЧАТЬ as his bid for the National Lottery was being reconsidered after a bitter court case. To Branson’s distress, the original decision to award him the lottery licence was overturned. Partly, he knew, this book’s revelations had turned opinion against him. Now, eight years later, Branson’s recent activities, self-promotion and solecisms, especially during his bid for the distressed bank Northern Rock, have warranted an updated version of the original book.

      Over the past eight years I have occasionally been invited to write articles for newspapers about Branson. Each article automatically provokes Branson to complain about ‘multiple inaccuracies’ and demand the publication of his version of the truth. Invariably, identical facts provoke starkly different interpretations. My articles published during his bid for Northern Rock especially provoked his ire. I did not think that his controversial past justified the government’s original decision to entrust over £50 million of taxpayers’ money to the Virgin group. For whatever reason, the government finally agreed with me. The loss of Northern Rock could be as grave a blow to Branson’s fortunes as his failure to win the Lottery licence.

      Sir Richard nevertheless remains one of the world’s most popular tycoons. Countless ambitious and intelligent young people, aspiring to become successful businessmen, voraciously read his autobiography and other publications in their attempts to understand the secret of his success. If they believe that his version is the Holy Grail, they are mistaken. During my own career following the lives of other tycoons including Robert Maxwell, Mohamed Fayed, Tiny Rowland, Geoffrey Robinson and Conrad Black, one common denominator has always emerged. An important element of their success has been the myths generated to conceal their aggressive journeys up the greasy pole. Similarly, once they bask in the spotlight, they share a brazen aggression to maintain their version of the ‘truth’ against those posing honest questions. However outstanding a personality Branson may be, he is weakened by his forceful attempts to silence his critics and his victims; and it is the latter, his hapless business partners, who remain frustrated by his remorseless success.

      Eight years ago, Branson had reached a precipice, and his empire’s prosperity was endangered. Brilliantly, his juggling snatched victory from possible defeat. Now, once again, his fortunes are challenged. Whether he can stage another resurrection is a tantalising question. The Branson rollercoaster never stops.

       Tom Bower

       London, July 2008

       Introduction

      In early June 1988, Ken Berry, a discreet director of the Virgin Group, arrived in Tokyo on a secret assignment. Berry, a deal-maker trusted by Richard Branson, was searching for $150 million.

      Although Virgin Music was a publicly owned company, Richard Branson preferred not to reveal Berry’s mission to his British shareholders and his two non-executive directors.

      Berry had arranged to meet Akira Ijichi, the president of Pony Canyon, a subsidiary of a giant Japanese media company. Their introduction at the Intercontinental Hotel in the Shinjuku district lasted two hours.

      ‘This meeting has got to remain secret,’ stipulated Berry. Ijichi nodded his agreement. Berry continued: ‘Virgin needs money to expand. We’re looking for $150 million.’ That was not the complete reason for Berry’s search for money.

      Three months later, in September, Akira Ijichi arrived in London with his translator Moto Ariizumi, a junior executive in the company. Both stayed at the Halcyon Hotel, in Holland Park, conveniently close to Branson’s home. By then, their New York bankers had undertaken an external examination of the Virgin Group’s business and finances. Negotiations, the bankers had suggested, should start at $125 million for a 25 per cent stake.

      Berry, a natural deal-maker, could sense Ijichi’s enthusiasm. The Japanese was flush with cash. During their discussions in Virgin’s offices on the Harrow Road, Berry emphasised on several occasions, ‘We don’t want any publicity. We don’t want the shareholders to know.’ The secrecy suited the Japanese: they wanted the deal to succeed.

      Later, at the end of their second day in London, the two Japanese met Richard Branson for dinner at his home. Their host was charming but firm: ‘The company’s worth $600 million. Not a dollar less.’ Ijichi nodded.

      The following morning, the two Japanese were welcomed by Branson on his houseboat in Little Venice. Amid the stripped pinewood floors, cane furniture and leafy plants Branson shone, in Moto Ariizumi’s opinion, as a ‘quite extraordinary but fashionable’ representative of the alternative culture.

      Before their departure, Akira Ijichi agreed to pay $150 million for a 25 per cent stake although several important details remained unresolved. Branson and Berry were untroubled by the delay. In the meantime, Branson had dramatically announced his decision to privatise the Virgin Group. His unexpected decision to buy back the shares from the public had caused considerable surprise although everyone was grateful that he valued the Virgin Group at £248 million, double the stock market’s value. However, when Virgin’s shareholders met in November 1988 to formally approve Branson’s proposed privatisation, neither the shareholders nor Virgin’s two non-executive directors were aware of Berry’s continuing negotiations with the Japanese. If the shareholders had known about Pony Canyon’s agreement that the Virgin Group was worth $600 million, or £377 million – £129 million more than the sum offered to shareholders – they might have demanded that Branson buy back the shares at the same valuation.

      Pony Canyon’s investment was formalised in May 1989. The public would remain unaware that the relationship had been initiated before Branson’s announcement of the privatisation.

      Within two years, Virgin’s status would be utterly transformed. Branson was hailed as a genius after selling Virgin Music for £560 million or $1 billion. Since his deal with Akira Ijichi, Branson had doubled his fortune and become one of a rare breed: a legend in his own lifetime, an icon and a billionaire.

      

      Eight years later, on 8 November 1999, Branson was invited as a British hero to deliver a Millennium Lecture at Oxford University. The Examination Room was packed with admirers, students and elderly academics. Mr Cool Britannia, the blameless face of New Britain, was introduced by Lord Butler, the former Cabinet Secretary, as ‘a lighthouse for enterprise who owns 150 companies and all of them are profitable’. Branson, dressed casually in his characteristic pullover, smiled. He knew that Butler’s praise was inaccurate. With the exception of his airline and rail franchises, all of his major companies in 1999 were trading at a loss.

      Branson was rarely asked to face unpleasant contradictions. Voted Britain’s favourite boss, the best role model for parents and teenagers, and the most popular tycoon, he was widely admired by most Britons. Branson, the public believed, was at heart a charitable public servant whose companies just happened to earn handsome profits. Idealism was his business.

      The opening of Branson’s sermon to his young idolaters in Oxford emphasised the irrelevance of education. Only those rejecting university would become millionaires, he preached.

      His second theme foretold the future of industry: it was dead. ‘Don’t go into industry to make money,’ he urged. Manufacturers with assets would soon be worthless. ‘Focus on customers,’ was his gospel. Only brands would be valuable in the future. ‘I believe there’s no limit to what a brand can do,’ he enthused. Expertise was also worthless: ‘If you can run one business, you can run any business.’ He personally had known little about the music and airline businesses, the sources of his two fortunes, which naturally led to his third article of faith urged on his audience: ‘get the right СКАЧАТЬ