Gulf and Western Industries
|Industry||Clothing, entertainment, industry, mass media, publishing|
|Fate||Non-publishing/entertainment assets dismantled; reincorporated as Paramount Communications after leading subsidiary Paramount Pictures|
|Founded||1934(as the Michigan Bumper Company)|
|Headquarters||New York, New York, United States|
|Charles Bluhdorn, Martin S. Davis|
|Owner||Charles Bluhdorn (1958)|
|Subsidiaries||Associates First Capital Corporation
Madison Square Garden
New Jersey Zinc
Simon and Schuster
South Puerto Rico Sugar Company
Gulf and Western's origins date to a manufacturer named the Michigan Bumper Company founded in 1934, although Charles Bluhdorn treated his 1958 takeover of what was then Michigan Plating and Stamping, as its "founding" for the purpose of later anniversaries.
Under Bluhdorn the company diversified widely, leaving behind such things as stamping metal bumpers for a variety of businesses, including financial services, manufacturing, apparel and home, consumer and agricultural, auto parts, natural resources and building products, entertainment and publishing. A partial list of Gulf and Western's holdings between 1958 and 1982, with year of acquisition in parentheses:
- APS Holding Corp., auto parts manufacturer
- Paramount Pictures (1966)
- Paramount Television (original)
- New Jersey Zinc (1966)
- Universal American, including Bohn Aluminum and Brass Corporation subsidiary (1966)
- Taylor Forge (1967)
- South Porto Rico Sugar Company (1967), a holding company in Jersey City, New Jersey, with principal subsidiary, also called South Porto Rico Sugar Company, a cane sugar refiner in Ensenada, Guánica County, Puerto Rico owners of Central Guanica, purported to once be the largest cane sugar refinery in the world.
- Associates First Capital Corporation (also known as The Associates), a financial services company (1968)
- Consolidated Cigars (1968)
- Stax Records (1968)
- Sega (1969)
- Kayser-Roth (1975) a clothing company that happened to own the Miss Universe pageant because it had bought Pacific Mills, which had invented the pageant to sell its Catalina Swimwear brand
- Simon & Schuster (1975)
- Madison Square Garden and by extension the New York Rangers and New York Knicks (1977)
- Simmons Bedding Company (1979)
- Thomas Ryder and Son, of Bolton − a machine tool manufacturing company, acquired from Whitecroft (1981)
With the Paramount acquisition, Gulf and Western became parent company of the Dot Records label and the Famous Music publishing company. After Stax was acquired, that label became a subsidiary of Dot, although Dot was not at all mentioned on the label (rather, Dot and Stax were noted as subsidiaries of Paramount). Later on, the record operation was moved under Famous Music and renamed the Famous Music Group.
In 1967, the company also purchased Lucille Ball's Desilu Productions library, which included most of her television product, as well as such properties as Star Trek and Mission: Impossible, both of which would rank amongst its most profitable commodities over the years. Desilu was renamed Paramount Television.
Gulf and Western sold Stax back to its original owners in 1970, and with it the rights to all Stax recordings not owned by Atlantic Records. A year before, Dot's non–country music roster and catalog was moved to a newly created label, Paramount Records (the name was previously used by a label unrelated to the movie studio; Paramount acquired the rights to that name in order to launch this label). It assumed Dot's status as the flagship label of Paramount's record operations, releasing music by pop artists and soundtracks from Paramount's films and television series. Dot meanwhile became a country label.
Famous Music provided distribution for several independent labels, such as Neighborhood Records and Sire Records. Famous began distributing yet another independent label, Blue Thumb Records, in 1971, before buying it outright in 1972. In 1974, Gulf and Western sold the entire record operation to the American Broadcasting Company, which continued the Dot and Blue Thumb imprints as subsidiaries of ABC Records, while discontinuing the Paramount label altogether.
While working for Paramount, Barry Diller had proposed a "fourth network", but he could not convince the board of trustees/directors of the wisdom of this idea. Fox owner News Corporation was, however, interested in starting a network.
The early 1980s
On June 5, 1980, Gulf and Western unveiled an electric car, powered by a zinc chloride battery that would hold a charge for several hours and permit speeds of up to 60 miles per hour (97 km/h). By year's end, however, the U.S. Department of Energy (which had invested $15 million in the project) reported that the battery had 65% less power than predicted and could be recharged only by highly trained personnel.
In 1981, former officials of Gulf and Western's Natural Resources Division led a buyout of New Jersey Zinc and made it a subsidiary of Horsehead Industries, Inc.
In 1983 Bluhdorn died of a heart attack on a plane en route home from Dominican Republic to New York headquarters, and the board bypassed president Jim Judelson and named senior vice president Martin S. Davis, who had come up through Paramount Pictures, as the new chief executive officer.
The Martin Davis restructuring
Davis slimmed down the company's wilder diversifications and focused it on entertainment, and sold all of its non-entertainment and non-publishing assets.
In 1983, Gulf and Western sold Consolidated Cigar Corporation to five of its senior managers.
Also in 1983, Gulf and Western sold the U.S. assets of Sega to pinball manufacturer Bally Manufacturing. The Japanese assets of Sega were purchased by a group of investors led by David Rosen and Hayao Nakayama.
In 1984, Gulf and Western divested itself of its many Taylor Forge operations to private owners. Taylor Forge's Somerville, NJ plant became Taylor Forge Stainless, while its facilities in Paola, KS and Greeley, KS became Taylor Forge Engineered Systems.
In 1985, APS auto parts, Kayser-Roth clothing and Simmons Bedding were sold to the Wickes Companies. The company, thus restructured, subsequently renamed itself Paramount Communications in 1989, and promptly sold The Associates to the Ford Motor Company for $3.35 billion.
The Gulf and Western Building (15 Columbus Circle in Manhattan) by Thomas E. Stanley, was built in 1970 for the Gulf and Western company north of Columbus Circle, at the south-western corner of Central Park. The building occupies a narrow block between Broadway and Central Park West and, at 583 feet (178 m), it commands the dramatic view to the north, as well as its immediate surroundings.
The top of the building sported a restaurant, The Top of the Park, which was never a full success even though run by Stuart Levin, famous for the Four Seasons, Le Pavillon, and other "shrines of haute cuisine," and it being graced with Levin's own elegant signature sculpture by Jim Gary, "Universal Woman."
Similarly, the cinema space in the basement—named Paramount after the picture company that Gulf and Western owned—was closed as the building was sold.
Problems with the 45-story building's structural frame gave it unwanted fame as its base was scaffolded for years and the upper floors were prone to sway excessively on windy days, even leading to cases of nausea akin to motion sickness.
The 1997 renovation into a hotel and residential building, the Trump International Hotel and Tower (One Central Park West), by Costas Kondylis and Philip Johnson involved extensive renovation of both interior and facades. For example, the 45 stories of the original office tower were converted into a 52-story residential building, enabled by the lower ceiling height of residential spaces. The facade was converted with the addition of dark glass walls with distinctive shiny steel framing.
Paramount Communications Incorporated
New ownership, later acquisitions and split-off
Paramount Communications Inc. was acquired by Viacom on July 7, 1994 following the purchase of 50.1% of Paramount's shares for $9.75 billion. At the time, Paramount's holdings included Paramount Pictures, Madison Square Garden, the New York Rangers, the New York Knicks, and the Simon & Schuster publishing house. The deal had been planned as early as 1989, when the company was still known as Gulf and Western. Though Davis was named a member of the board of National Amusements, which controlled Viacom, he ceased to manage the company.
Under Viacom, the Paramount Stations Group continued to build with more station acquisitions, eventually leading to Viacom's acquisition of its former parent, the CBS network, in 1999. Around the same time, Viacom bought out Spelling Entertainment, incorporating its library into that of Paramount itself.
Viacom split into two companies in 2006, one retaining the Viacom name (which continues to own Paramount Pictures), while another was named CBS Corporation (which now controls Paramount Television Group, which was renamed CBS Paramount Television, now known as CBS Television Studios and worldwide distribution unit is now CBS Television Distribution and CBS Studios International, in 2006, Simon & Schuster [except for Prentice Hall and other educational units, which Viacom sold to Pearson PLC in 1998], and what's left of the original Paramount Stations Group, now known as CBS Television Stations). National Amusements retains majority control of the two.
Together, these two companies own many of the former media assets of Gulf and Western and its Paramount successor today. Meanwhile, the Madison Square Garden properties (including the Knicks and Rangers) were sold to Cablevision not long after the Viacom takeover. Cablevision owned the MSG properties until 2010, when they were spun off as their own company. CBS retained ownership of the Paramount Parks chain for a short while, but sold the parks to Cedar Fair in 2006, and thus National Amusements got out of the theme park ownership business entirely. Over the next few years, Cedar Fair purged references to Viacom-owned properties from the former Paramount Parks, a task completed in 2010. Viacom also sold its stake in the USA Networks to Universal in 1997, and the channels came under the ownership of Universal's successor, NBCUniversal, which still retained those holdings as of late July 2013.
- Gulf and Western owned Famous Music, a music publishing company, through Paramount Pictures. The music publishing company was created in 1928 by Famous-Lasky Corp., Paramount's predecessor.
- Viacom sold Famous Music in 2007 to Sony/ATV Music Publishing, LLC.
- "Gulf & Western Agrees to Merger". Toledo Blade. April 14, 1966. Retrieved 5 January 2016.
- "South Porto Rico Sugar Company v. Commissioner of Internal Revenue".
- Government House, San Juan, P.R. United States War Department Annual Reports, 1920, Volume III, Nineteenth Annual Report of the Governor of Porto Rico, Appendix II. Report of the Executive Secretary of Porto Rico, Statement No. 6.--List of domestic corporations in legal existence on June 30, 1920, p 97.
- Maldonado, Deborah. "Multi-genre Reasearch(sic): The Sugar Cane Industry in Puerto Rico". Retrieved 12 June 2014.
- "Whitecroft finds buyer for Ryder". The Glascow Herald. March 4, 1981. Retrieved 6 January 2016.
- "Energy Flashes". Mother Earth News. Jan–February 1981. Retrieved 2008-09-14. Check date values in:
- "Martin Davis, 72; Created Modern Paramount". The New York Times, October 6, 1999
- Cole, Robert J. "Sugar Sale By G.&W.". The New York Times. Retrieved 4 January 2016.
- Simnacher, Joe (August 13, 1989). "Associates Widens Ford`s Road". Chicago Tribune.
- Saxon, Wolfgang, Stuart Levin, 64, an Operator of Elegant Restaurants is dead, New York Times, December 21, 1994
- "Annual Report". U.S. Securities and Exchange Commission. Retrieved 7 March 2016.
- "75 Power Players: The Outsiders". Next Generation. Imagine Media (11): 61. November 1995.
Viacom completed acquisition of Paramount Communications in July 1994, creating one of the world's largest entertainment companies.
- Fabrikant, Geraldine (February 15, 1994). "Executives Say That Viacom Has Won Paramount Battle". New York Times. Retrieved 21 May 2012.
- Delugach, Al (May 6, 1989). "Viacom, Gulf & Western Discuss Merger". Los Angeles Times. Retrieved May 30, 2012.