The Gambler

1. From Humble Beginnings to Business Titan: Kirk Kerkorian's Remarkable Journey

"He was a tough guy who wept at funerals, a humble man privately proud of his accomplishments, a business genius who ignored his MBA advisers, a daring aviator and movie mogul, a gambler at the casinos and on Wall Street who played the odds in both houses with uncanny skill."

Rags to riches. Kirk Kerkorian's life epitomizes the American Dream. Born to Armenian immigrant parents in 1917, Kerkorian grew up in poverty during the Great Depression. He dropped out of school in eighth grade and worked various odd jobs, including as a boxer and a civilian pilot during World War II.

Self-made success. Kerkorian's business acumen and risk-taking propensity led him to success in multiple industries:

• Aviation: Founded Trans International Airlines
• Real estate: Major Las Vegas casino and hotel developer
• Entertainment: Owned MGM Studios multiple times
• Automotive: Significant investor in major car companies

His net worth peaked at $18 billion in 2008, making him one of the wealthiest people in the world. Kerkorian's journey from a poor immigrant's son to a multi-billionaire businessman showcases his extraordinary drive, intelligence, and adaptability.

2. The Art of the Deal: Kerkorian's Unparalleled Negotiation Skills

"You can always walk back in again," he used to say.

Master negotiator. Kerkorian's deal-making prowess was legendary. He had an uncanny ability to spot undervalued assets and negotiate favorable terms. His approach often involved:

• Patience and timing
• Willingness to walk away
• Understanding the other party's motivations
• Leveraging his reputation and relationships

Key deals. Some of Kerkorian's most notable negotiations include:

• Acquiring and selling MGM Studios multiple times
• Purchasing the Flamingo Hotel and Caesars Palace in Las Vegas
• Buying and selling Trans International Airlines
• Investing in and influencing major automakers like Chrysler and General Motors

Kerkorian's negotiation style was marked by a calm demeanor and a willingness to take calculated risks. He often used his "poker face" to keep his intentions hidden, giving him an edge in high-stakes business dealings.

3. Risk-Taking and Resilience: Kerkorian's Gambling Spirit in Business

"Life is a big craps game," he told the Los Angeles Times. "I've got to tell you, it's all been fun."

Calculated risks. Kerkorian's approach to business mirrored his approach to gambling. He was willing to take big risks, but always with a clear understanding of the potential outcomes. This gambling spirit allowed him to:

• Make bold acquisitions when others were hesitant
• Invest in struggling industries and turn them around
• Navigate economic downturns and emerge stronger

Resilience in setbacks. Despite his overall success, Kerkorian faced numerous challenges:

• The 2008 financial crisis significantly impacted his net worth
• His CityCenter project in Las Vegas faced near-bankruptcy
• Several of his takeover attempts, like Chrysler, were unsuccessful

However, Kerkorian's resilience allowed him to bounce back from these setbacks. He viewed losses as learning experiences and never let them deter him from future opportunities.

4. Building Las Vegas: Kerkorian's Role in Shaping the Entertainment Capital

"I thought it was going to become an adult Disneyland," he said.

Vegas visionary. Kerkorian played a pivotal role in transforming Las Vegas from a small gambling town to a world-class entertainment destination. His contributions include:

• Building the International Hotel (later the Las Vegas Hilton), the world's largest hotel at the time
• Developing the MGM Grand, another record-breaking hotel and casino
• Creating CityCenter, a massive urban complex on the Las Vegas Strip

Entertainment focus. Kerkorian understood that Las Vegas needed more than just gambling to thrive. He brought in world-class entertainers like Elvis Presley and Barbra Streisand, helping to establish Vegas as an entertainment mecca.

Kerkorian's vision for Las Vegas extended beyond individual properties. He saw the potential for the city to become a major tourist destination, and his investments helped make that vision a reality. His developments raised the bar for luxury and amenities in Las Vegas, prompting other developers to follow suit.

5. Hollywood Mogul: Kerkorian's Impact on the Film Industry

"Kirk felt he'd bought himself a little immortality."

MGM legacy. Kerkorian's involvement with MGM Studios spanned decades. He:

• Acquired and sold the studio multiple times
• Preserved and monetized MGM's vast film library
• Merged MGM with United Artists, creating a powerhouse in the industry

Industry influence. Beyond MGM, Kerkorian's impact on Hollywood was significant:

• He helped shift the focus towards film libraries as valuable assets
• His management style often prioritized financial performance over artistic concerns
• He navigated the changing landscape of the entertainment industry, including the rise of cable TV and home video

Kerkorian's approach to the film industry was often controversial. Critics accused him of asset-stripping and prioritizing short-term gains over long-term artistic value. However, his business acumen helped keep MGM afloat during challenging times for the industry, and his focus on the value of film libraries proved prescient.

6. Philanthropy and Privacy: Kerkorian's Generous yet Discreet Giving

"If you expect something in return for your charity, it isn't charity," he told friends.

Silent benefactor. Despite his immense wealth, Kerkorian was known for his private and often anonymous charitable giving. His philanthropy was characterized by:

• Large donations to Armenian causes, especially after the 1988 earthquake
• Support for various medical and educational institutions
• Insistence on anonymity for most of his charitable acts

Lincy Foundation. In 1989, Kerkorian established the Lincy Foundation, named after his daughters Tracy and Linda. The foundation:

• Donated over $1 billion to various causes
• Focused heavily on aid to Armenia
• Operated with minimal overhead and publicity

Kerkorian's approach to philanthropy reflected his overall attitude towards wealth and fame. He believed in giving without seeking recognition, often going to great lengths to keep his charitable activities private. This discretion sometimes led to misunderstandings about his generosity, but it aligned with his personal philosophy of quiet impact.

7. Personal Life and Relationships: The Human Side of a Business Legend

"He was so much fun, so endearing, kind and sweet. You'd never think he was some big deal in business," Una said of those early encounters.

Private persona. Despite his public success, Kerkorian was intensely private about his personal life. He:

• Avoided public speaking and media attention
• Preferred small gatherings with close friends over lavish parties
• Maintained a relatively modest lifestyle despite his wealth

Family and relationships. Kerkorian's personal life was complex:

• Married three times, with his last marriage lasting only a month
• Father to two daughters, Tracy and Linda
• Involved in a high-profile paternity dispute late in life

Friendships. Kerkorian valued loyalty and maintained long-lasting friendships, including:

• Cary Grant, who became a close confidant
• Various business associates who became part of his inner circle
• Tennis partners who shared his passion for the sport

Despite his business acumen, Kerkorian struggled with personal relationships at times. His dedication to work and privacy often impacted his family life, but he maintained strong bonds with his daughters and a small circle of close friends throughout his life.

8. Adaptability and Vision: Kerkorian's Success Across Multiple Industries

"Necessity is the mother of taking chances."

Industry polymath. Kerkorian's success wasn't limited to a single field. He demonstrated remarkable adaptability across various industries:

• Aviation: From pilot to airline owner
• Real estate: Major player in Las Vegas development
• Entertainment: Film studio ownership and management
• Automotive: Significant investments in major car companies

Forward-thinking. Kerkorian's vision allowed him to:

• Recognize the potential of Las Vegas before it became a major destination
• Understand the value of film libraries in the entertainment industry
• See opportunities in struggling companies and industries

His ability to adapt to changing market conditions and pivot between industries was a key factor in his long-term success. Kerkorian wasn't afraid to enter unfamiliar territories, often relying on his business instincts and willingness to learn quickly.

9. The Power of Timing: Kerkorian's Uncanny Market Instincts

"Timing is everything," Kirk was fond of saying.

Market intuition. Kerkorian had an exceptional ability to time his business moves:

• Buying undervalued assets during economic downturns
• Selling at market peaks
• Recognizing emerging trends before they became mainstream

Key timing decisions:

• Selling MGM to Ted Turner just before the 1980s film industry slump
• Investing in Las Vegas real estate ahead of the city's boom
• Divesting from Ford Motor Company before the 2008 financial crisis

While not all of Kerkorian's timing was perfect, his overall track record demonstrated a keen understanding of market cycles and industry trends. He often made contrarian moves, buying when others were selling and vice versa, which contributed significantly to his wealth accumulation.

10. Legacy and Leadership: Kerkorian's Lasting Impact on American Business

"By design he gets little recognition for what he's done here," Murren told the newspaper.

Business influence. Kerkorian's impact on American business was profound:

• Helped shape modern Las Vegas
• Influenced corporate governance through his activist investing
• Demonstrated the value of patient, long-term investing

Leadership style. Kerkorian's approach to leadership was characterized by:

• Delegating authority to trusted executives
• Making decisive moves based on instinct and experience
• Maintaining a low public profile while wielding significant influence

Lasting legacy. Kerkorian's career left an indelible mark on:

• The hospitality and entertainment industries
• Corporate finance and mergers & acquisitions
• Philanthropic giving, especially to Armenian causes

While Kerkorian often avoided the spotlight, his influence on American business was undeniable. His career spanned nearly seven decades and multiple industries, leaving a legacy of bold decision-making, strategic vision, and quiet philanthropy that continues to influence business leaders today.

Last updated: November 18, 2024