From The Amateur To The Owner Of Metro-Goldwyn-Mayer And The Largest Shareholder Of Chrysler, General Motors And Ford €? Biography Of Kirk Kerkorian

Explorer vc.ru studied the biography of Kirk Kerkorian, who in his life went from being a handyman and an Amateur boxer to one of the worlds richest people, made his fortune in aviation and hospitality industry, was the owner of the film Studio Metro-Goldwyn-Mayer and one of the largest shareholders in Chrysler, General Motors and Ford. Kerkorian is also known for the large donations of Armenia and private life. During his life, this entrepreneur went from an Amateur boxer to the owner of the film Studio MGM, a large network of hotel and entertainment MGM Resorts and assets in other sectors. Kerkorian was known for a series of controversial transactions that have sparked condemnation. However, he skillfully rehabilitated through philanthropic activities and today is considered one of the national heroes of their historic homeland, Armenia.

Kirk Kerkorian was born in 1917 in Fresno, California. His parents emigrated from the Ottoman Empire, fleeing from the Armenian genocide. The name of the future entrepreneur at birth, it was Grigor Grigoryan, but he later changed it to a more American version. Kerkorian was the fourth son in the family. Despite moving to America, native future entrepreneur tried to preserve the national identity at home and communicate only in Armenian.

English Kerkorian studied, communicating with peers. Father entrepreneur Aaron Grigoryan had the ability to run the business successfully engaged in the cultivation of raisins and watermelons, purchased the farm and owned thousands of acres of land. On the available information, the trade of fruits and berries he managed to earn $1 million. However, the success was temporary, and because in 1921, the crisis has deprived the family of all. From this moment, the quiet life ended, and the Grigorian was forced to move constantly, eventually changing the place of residence about 20 times.

At some point in trying to find work, his parents moved with her children to Los Angeles. Judging from the stories of the Kerkorian, he lived in his childhood is not easy. He was malnourished and was forced to early to start to earn a living. He found himself a pretty standard job — was engaged in the sale of Newspapers, are traded on the market and even managed to work at the car wash. The money Kerkorian has given to parents.

He was not a good student and in his youth became a member of one of the local gangs and even was transferred to a reform school. Kerkorians education ended after the eighth grade. Since then, he has replaced a number of professions including a Builder, cleaner, loader, mechanic. However, he successfully combined work with Boxing.

Boxing Kerkorian came in 15 years. It all began when he sold Newspapers in Fresno. Kerkorian at that time knew little English, and the work was hard on him. To trade they tried in the rich neighborhoods, but due to poor sales, limited to not work. In addition, he and his friends often stole Newspapers, and they came back, so nothing is earned.

At times, kirk and his friends get into fights. Traces of one of them once said Kerkorians father and made the son for a while to throw the Newspapers and instead work out Boxing with his older brother, niš. The latter, incidentally, has achieved in this field some success and even became a professional fighter. Kerkorian became involved in the local Boxing gyms to coach Luke Turner. He was the youngest in the group, but immediately attracted the attention of Turner — Kerkorian was physically developed, he was easy extremely powerful blow with the right hand, and he quickly began to win by older opponents.

Four months after the start of classes Kerkorian became a member of the Junior championship Fresno. The first rival Kerkorian knocked out in less than a minute. Soon things went even better, and Kerkorian became the champion of his city in the Welterweight division at the Amateur level. Turner saw Kerkorians big sporting future, but kirk is a long time in Boxing is not delayed. Among the reasons was his fathers illness and bad at that time, the earnings of boxers.

In addition, Kerkorian has a new hobby — aviation. On one of versions, learn in flight school entrepreneur in 1936, invited by his friend Sargis, Megerdichian. They worked together in a textile factory. Money to pay for these courses Kerkorian was not, however, he was able to convince the instructor to allow him learning. According to another version, in this Kerkorian only in 1939.

At that time he got an assistant to Ted Oflaherty, who was involved in the installation of fireplaces. Earned Kerkorian about $0,45 per hour. However, Oflaherty was a pilot and was introduced to Kerkorian with the world of aviation. Thanks to him, the future entrepreneur first came on Board. Flight so impressed Kirk that he finally abandoned the idea of a career in professional Boxing.

In 1940 he went to study at the flight school of Florence Barnes. Money he had, and as payment he worked on a ranch Barnes. Soon Kerkorian got his pilots licence and a position as an instructor at the same school. New skills had to be fitting and opened in front of kirk and great prospects. Went 1940, Europe was actively involved in world war II.

But Canada was selling Mosquito bombers with the UK and shipping across the ocean needed risky pilots, ready to do anything for a living. This took Kerkorian, tempted by the high salary of about $1000 for flight and the ability to do what you love. The whole point of the mission was to deliver the plane from Canada to Scotland. The work was risky to fly to the target was not all of the pilots. In total, Kerkorian delivered 33 aircraft, never seriously uninjured.

The money he spent, putting off their own business. In 1945, Kerkorian purchased a small single-engine Cessna airplane. The next step was the provision of services of air taxi and pilot training. To do this, Kerkorian returned to Los Angeles. One of the most frequent flights were flights to Las Vegas.

Kirk quickly assessed the opportunities the gambling capital of the USA, but about your business in this area then not thinking. At that time he mostly drove customers and he willingly looked in a casino, losing and winning significant amounts. And in both cases, Kerkorian remained outwardly imperturbable. Despite the fact that he was a gambler, knowing his men claimed that play he dropped in one day just decided and stopped. In 1947 Kerkorian, it seems, tired of an idle life, and he decided to focus on creating their own business.

For $60 thousand he bought the airline, Los Angeles Air Service. Of course, she was a major, in her possession were only three aircraft. Purchase Los Angeles Air Service was a risky business, and Kerkorian had little experience in the business, but he was able to run the company quite well. Kerkorian continued to use the airline for flying between Los Angeles and Las Vegas and well-earned on this. Of course, at some point, this business ceased to satisfy his growing ambitions, but for a long time he was engaged only to them and gradually made a lot of money.

In 1960, the owner renamed the company Transinternational Airlines. And two years later sold it to Studebaker Corporation. It is worth saying that Kerkorian is not just to accumulate money, and constantly let them. One of the interesting areas was land in Las Vegas. So, in 1962 he bought the land for $960 thousand, which in 1968 sold for the construction of Caesars Palace for $5 million.

Before the sale he took it out, earning about $4 million. Years later, Kerkorian called it one of the most successful deals. In 1964 Kerkorian regained control over their own airline. He took the leadership issues and paid for a smaller amount than that for which sold. This maneuver became one of the most popular methods of Kerkorian, and later he has not used it once.

Having Transinternational Airlines ago, he invested in its development and in 1965 led the company to the stock exchange. The value of the shares within three years growing, the company has increased three times. In 1968, Kerkorian sold again Transinternational Airlines, at this time TransAmerica. The deal was profitable, he received $104 million and shares TransAmerica value of $85 million and became its largest shareholder. The money the entrepreneur has invested in the hotel business and the film industry.

In 1967, Kerkorian purchased the Flamingo Las Vegas. However, its scope and opportunities did not satisfy Kerkorian, and he soon commissioned the construction of the whole complex, known as the International. International became the largest hotel complex in the world. Kerkorian used a pretty standard marketing ploy to attract customers in International. It was made by Tina and IKE Turner, Barbara Streisand and Elvis Presley.

Thanks, the last one was set several attendance records. There were problems. Kerkorian faced with the need to repay the loans and forced went to the extreme, deciding to sell additional shares private public company International Leisure, which owned and International, and Flamingo. To do this failed because the blocking of the transaction from the Commission on securities and exchanges. The latter explained their actions by the fact that Kerkorian has not provided information on criminal links the previous owners of Flamingo.

The case was resolved, but the dispute with the SEC caused damage to the value of the company. In the end Kerkorian in the early 70s had to make a deal with Hilton, which has gradually gained International Leisure full control. Funds received Kerkorian partially invested in the construction of the MGM Grand, which soon took the title of the largest International hotel complex, and thereby provoked the wrath of the Howard Hughes. Its construction was preceded by Kerkorians battle for control of the famous film Studio Metro-Goldwyn-Mayer. The actions of the entrepreneur most of the sources are regarded as a hostile takeover with the exclusion of the shareholders.

Caught in 1969, MGM, Kerkorian is not focused on film production and other important business things. First he bought the brand, necessary for development of the image of his Empire. Soon the number of produced films was reduced to five or six low-budget films a year, and owned by the Studio areas in CULVER city Kerkorian sold for development. In addition, not really picky about art, the entrepreneur began to sell off valuable props, objects of the surroundings and scenery. He also forced the leadership of MGM to agree to Finance the construction of hotel and entertainment complex MGM Grand and used the name of the Studio in the name of their other hotels.

The MGM Grand opened in 1973 and was the largest hotel in the world. It was 26 floors and 2 Grand rooms. Also, the complex included a casino, shops, meeting rooms and much more. MGM Grand has become a real jewel Empire Kerkorian. In 1978, purchased a 25% stake in Columbia Pictures up to complete absorption of this company is not reached.

In 1981, Kerkorian joined the MGM Studio, United Artists — that she owned the rights to the James bond films. Combining hospitality and film business under the brand of MGM, the businessman divided his company into two directions. Work in the film industry, MGM/UA and managing hotels, MGM Grand Hotels. MGM/UA under Kerkorians guidance was not successful, in contrast to MGM Grand Hotels. The latter gradually expanded, and in 1978 opened hotel and entertainment complex MGM Grand Reno in Reno, Nevada.

However and in this direction in 1980, there were problems — MGM Grand Las Vegas was badly damaged in the fire that it killed 85 people. The incident is still considered one of the worst tragedies in the history of Las Vegas. Just eight months the owner is required for MGM restoration. In 1986, Kerkorian has successfully sold both the MGM Grand for $594 million to Bally Manufacturing. The latter was renamed the complexes in Ballys Las Vegas and Ballys Reno.

Subsequently, it has allowed Kerkorian to use the MGM brand in other hotels. In the 80s Kerkorian tired from the management of the film Studio MGM/UA decided to sell it. Among the potential buyers was media Mogul Ted Turner, who acquired it in 1986 for $1.5 billion. After the purchase of Turner was waiting for an unpleasant surprise as MGM/UA was, to put it mildly, not the best, and a few months, the media Mogul thought about selling. The buyer was the same Kerkorian, only he paid for Studio time for only $490 million.

Kerkorian began looking for a new buyer for MGM/UA, simultaneously adjusting the condition of the Studio. The following transaction took place in 1990. The new owner was Italian financier Giancarlo Paretti. He paid for the MGM/UA $1.3 billion. Full to direct the film, Peretti did not — he went bankrupt, and its assets came under the control of Credit Lyonnais.

Bankers assess the condition of MGM/UA, was soon attacked with charges on Kerkorian. He was sued for fraud. In the end Kerkorian had to compromise. He compensated and regained MGM/UA. Typically, the amount is not disclosed, but some sources claim that he had paid $1.3 billion.

MGM came under the control of the entrepreneur in 1996. Kerkorian again took up its restoration and even renamed the MGM Plaza. The number of produced films increased to 12 per year. The last time Kerkorian sold MGM in 2004. The buyer was Sony, the transaction amounted to nearly $4.8 billion.

The film Studio itself cost nearly $3 billion, and the rest has gone to pay debts. In the 90-ies of the entrepreneur returned to the hotel business. In 1993 was opened the new MGM Grand in Las Vegas. Some difficulties caused the search space for the construction of the complex, ultimately purchased the Marina Hotel and the Tropicana Country Club club. The scale of the project, as usual, was impressive — almost 7 thousand numbers.

The hotel at the time was considered the largest in the world. In addition, the complex includes a casino, showroom, nightclub and other entertainment. Including one of the elements became the lions. The complex had its own amusement Park Grand Adventures, which lasted until 2002. In 1992 Kerkorian for $31.5 million purchased land in Las Vegas.

Here the businessman planned to build another hotel complex. Construction was started in 1995 at a cost of $460 million and ended two years later. The complex is called New York-New York Hotel and Casino and collected a exact copy of the main attractions of new York, including the Statue of Liberty. The hotel has over two thousand rooms and, in addition to all the usual establishments of a similar class of services, there are still a roller coaster. In 1996, gambling was legalized in Michigan.

Kerkorian took advantage of this opportunity and in 1999 he built a hotel and entertainment complex MGM Grand Detroit. Also during the 90-ies was launched on international integration. Kerkorian saw the potential in the development in China and even agreed to the placement of two casinos on the island of Hainan, which was announced in 1994. However, before the construction it did not come. It was then decided to expand to the Australian market.

In 1995, Kerkorian bought the hotel and entertainment complex Diamond Beach Hotel and Casino in Darwin, for $75 million and renamed it MGM Darwin. In addition, an attempt was made to market South Africa, which in 1996 was gambling is allowed. Here Kerkorian announced the construction of 15 properties in conjunction with Tsogo Sun. The first casino was opened in 1998. However, further development work in this market has not received, and in 2001 Kerkorian got rid of of this direction by selling all Tsogo Sun.

In the late 90s and early 2000s Kerkorian away from old tactics of construction of new facilities and began to absorb other companies. In 1999 was bought Primaddona, Kerkorian became a partner in the construction of New York-New York. Together with her entrepreneur got three casinos and two entertainment club in Nevada and California. In 2000 for $4.4 billion Kerkorian acquired a more known company — Mirage Resorts. She was the owner of a number of institutions, which include Bellagio, Golden Nugget, Treasure Isles, Beau Rivage, and other.

Adding your own Empire these institutions, Kerkorian became one of the largest owners of gambling establishments in the world. The next item was the release of the UK market, where in 2001 he was given relief gambling business. Kerkorian began with the launch of its own online casino playmgmmirage.com. We then purchased a 25% stake in Bristol Triangle Casino. However, in the end, nothing of announced plans was not executed.

The online casino closed, the proportion in the Triangle was sold, and the planned construction has not begun. In 2005, Kerkorian spent another large merger. This time was acquired Mandalay Resort Group. Under the control of the latter was about 16 institutions, including Mandalay Bay, Luxor Las Vegas and Excalibur Hotel and Casino. At the same time Kerkorian and get rid of the part of the institutions.

So, in 2004, was sold both Golden Nugget and MGM Darwin, and in 2009 — Treasure Island. In 2005, MGM entered the market of Macau. At that time the Chinese Las Vegas of interest to American entrepreneurs. In 2007, Kerkorian built there own the MGM Grand Macau. It includes a hotel with 600 rooms, two-story casino, nightclub, restaurants, bars and much more.

The last project Kerkorian led MGM was the CityCenter Las Vegas was built in 2009. This entertainment complex is considered the largest private construction project in US history. It includes hotels, Mandarin Oriental and The Harmon Hotel, casino hotel Aria Resort & Casino, the condo-hotel Vdara Hotel & Spa, shopping center Crystals and the Veer Towers condo. Expensive construction, erupting crisis and the decline in the popularity of gambling led to the fact that CityCenter, in spite of the scale and fame, caused heavy damage to MGM and Kerkorians personal status. In the 90s and 2000s years, Kerkorian was engaged not only in the hotel business.

For a long time he was interested in the automotive industry, and now he had the resources to begin to work in it. In 1995, Kerkorian took up another ambitious project — the purchase of the Chrysler group. For the automaker, he offered $22.3 billion. However, the plan came to nothing, and eventually Kerkorian was limited to a share of 13.8 per cent stake in Chrysler. However, with this package it was one of the largest shareholders of the group.

In 1998 he was a famous merger of Daimler and Chrysler. The sources said that Kerkorian was provoked by the shareholders for the transaction. Under the control of Daimler have hrysler things didnt go very. Kerkorian, who owned the third-largest stake in the merged company, DaimlerChrysler decided to sue in court for fraud and demanded damages of $8 billion and Chrysler to return to the former shareholders. The essence of the charges was that the Chairman of the Board jürgen Shrimp allegedly entered the businessman misleading with respect to the equality of partners in merger.

To win a court case failed. In 2007, Kerkorian made another attempt to acquire Chrysler for $4.5 billion. But it was not successful. In addition to Chrysler, Kerkorian still owned shares in General Motors and Ford. For GM Kerkorian took in 2005.

According to experts, he intended to turn his favorite scheme — to buy an impressive package of stock, to seize control and force the company to go for a suitable deal. Its main goal was the Union of GM and Nissan-Renaults. In the end, Kerkorian took about 9.9 percent of shares and became the largest shareholder. Then things didnt get very far, and the initiative to merge has not passed. Attempts to intimidate shareholders were also unsuccessful.

In December 2005, Kerkorian sold part of its stake and brought down the stock GM. In January 2006, he again increased his stake to 9.9% of the shares. Further it was planned to capture a car manufacturer, but this didnt work out. In the same year, the owner again sold his own share and this time permanently. In 2008, he purchased a 6.4% stake in Ford.

The company was going through hard times, and the emergence of a new shareholder, especially someone like Kerkorian, is clearly not improved the situation. All were known previous maneuvers of the entrepreneur, but the plan of taking the company out of the crisis, the family Ford is quite satisfied. However, within a year, the owner gradually sold the shares. However, he lost more than received — the purchase cost him $1 billion, but in the period under the control of Kerkorians shares fell in price by $650 million. Your decision the entrepreneur explained that he was forced to quickly lose shares due to the rapid deterioration Ford.

All these many operations together since the beginning of 2008, the crisis had a negative impact on the status of the owner. Before that it was $16 billion, and in 2009 decreased by $8.2 billion. In 2011, kirk Kerkorian left the leadership of MGM Resorts International, while remaining the largest shareholder, holding 19% shares. Kerkorian — ambiguous personality, while still alive about him were legends, now they become even more. The owner has always treated the business as gambling.

Kerkorian has repeatedly argued that in many cases he was just lucky. However, their few failures he was able to survive steadfastly and quickly compensate for the loss. Despite his wealth and influence, Kerkorian was quite a secretive person. He talked little about his personal life and did not seek publicity. A lifelong entrepreneur was an avid tennis player and loved to play with friends.

Complicated classes in this sport poor eyesight — problems with him started back when Kerkorian was the pilot. This is what led to the fact that he had to abandon the flight and drive. The businessman was inclined to luxury. He owned luxury homes in Las Vegas and Los Angeles and private aircraft DC-9, which cost him $18 million. He also had a yacht October Rose, where he loved to invite his friends.

Kerkorian had a very narrow social circle and never sought to be a friend to the world. It is known that Kerkorian was married four times. He has two daughters — a native of Tracy and Linda foster. It is in honor of them and was named the company Tracinda. Over a lifetime, kirk Kerkorian gave very few interviews and shunned public appearances.

It is difficult to ignore and his charitable work. In 1989 he founded the Foundation Lincy Foundation. Its purpose was to Finance programs in education and enlightenment, although that was only part of Kerkorians plans. The important direction of charitable activities of the entrepreneur has become of aid to Armenia. For example, in the late 80s Lincy to build housing for the victims of the earthquake in 1988.

In life Kerkorian, the joke went that the attitude of the USA to Armenia is solved in the office entrepreneur. Kirk really had connections in the United States and did much for the country of their ancestors. He made large donations. In my life in total, the businessman donated to Armenia and Artsakh about $1 billion. In a number of areas where it has invested include museums, art galleries and theatres.

For his charity entrepreneur was awarded the order of “homeland” and the title of National Hero of Armenia. Kirk Kerkorian died in 2015 at the age of 98 years. He left behind a fortune of $4.2 billion and not fully shot film about the Holocaust of the Armenians. After the death of the owner began arguing about the fate of his legacy. In particular, information surfaced that Kerkorian bequeathed to Armenia $200 million.

Moreover, authorities would not get money any access. The thing is that Kerkorian accused them of misappropriation of funds. This version of the content of the will of the entrepreneur has denied former Vice-President of the Lincy Foundation (the Foundation ceased to exist in 2011) Harut Sassounian, noting that the businessman bequeathed all his property to charity without giving specific directions. Caused issues and other items of the will. Daughters Tracy and Linda, he left nothing explaining that he had provided them during your life.

To the surprise of many, the $7 million received Kira Kerkorian — the daughter of the third wife of the owner of Lisa Bonder. Also in his will was referred to the assistants and associates Kerkorian Anthony Mandekic, Patricia Glaser and Jacqueline Thode. In 2016, the newly appeared information about the fact that Kerkorian has ordered all property to be sold and the money used to charity. In October of the same year, former Minister of foreign Affairs of Armenia Vardan Oskanian said that he saw the will in which Kerkorian ordered to donate $2 billion to the historical homeland. True, it does not put all the points in the case of the will of the entrepreneur, and the United States is still the trial continues in which family and friends Kerkorian trying to get part of the inheritance.

And as long as the case is closed, any donations payable to the Armenian cannot be considered. Planned Carcarana a film about the Armenian genocide called “the Promise” will be released in us theaters in April 2017, the main role is played by Christian bale.

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