Oprah (Harpo Studios)

In the season finale of Acquired's sixth season, hosts Ben Gilbert and David Rosenthal delve into the extraordinary journey of Oprah Winfrey and her media empire, Harpo Studios. Oprah's ascent from a challenging childhood to becoming the first black female billionaire and a pioneering influencer is explored, highlighting her savvy business decisions that expanded her brand from a daytime TV show to magazines, a cable channel, and beyond. The episode emphasizes her influential role in American culture, her strategic ownership of production, and her innovative contributions to the concept of influencer marketing. Additionally, the hosts tease an announcement regarding their Limited Partner program, reflecting on Oprah's lasting impact on the media landscape and consumer economy.

• Acquired podcast is wrapping up its sixth season with episode eight.
• Hosts Ben Gilbert and David Rosenthal discuss the life and business achievements of Oprah Winfrey and Harpo Studios.
• Oprah Winfrey is recognized for her influence on American culture and her evolution from a TV personality to a business mogul.

"Welcome to season six, episode eight, the season finale of Acquired, the podcast about great technology companies and the stories behind them. I'm Ben Gilbert. I'm David Rosenthal and we are your hosts."

The quote introduces the podcast episode and its hosts, setting the stage for the discussion on Oprah Winfrey.

• Oprah Winfrey is a significant figure in American life, primarily through her TV show which ran for 25 years.
• Her business decisions and brand expansion into various media forms are highlighted.
• Oprah is noted as the first black female billionaire and a pioneer of the modern concept of an influencer.

"Oprah is a fixture of American life, entering the home of tens of millions of Americans through their television set every day at 04:00 p.m. For the 25 year run of her show, the Oprah Winfrey show."

This quote emphasizes the extent of Oprah's influence through her long-running TV show.

• Oprah's impact on the idea of influencers is discussed, with her as the archetype for modern social media personalities.
• The hosts draw connections between Oprah's influence and the actions of current influencers like David Dobrik.

"She really invented the idea of what we today call an influencer."

The quote highlights Oprah's pioneering role in the influencer culture that dominates modern social media.

• The podcast promotes its Limited Partner program, which offers additional content such as a miniseries on venture capital fundamentals.
• A teaser is given for a significant announcement regarding the program to be revealed later in the episode.

"As always, if you love acquired and you want more, you can become an acquired limited partner."

This quote serves as a promotion for the podcast's premium content offering.

• The hosts acknowledge Oprah's unparalleled achievements in media, suggesting there is nothing in the media realm that Oprah hasn't accomplished.

"There's nothing you can do that Oprah hasn't already done."

The quote emphasizes Oprah's comprehensive experience and success in the media industry.

• Pilot is introduced as a trusted partner for startup accounting, tax, and bookkeeping needs.
• The importance of outsourcing non-core business functions like accounting is stressed.
• Pilot's growth and prestigious backing are noted, including an endorsement from Jeff Bezos.

"Pilot is the one team for all of your company's accounting, tax and bookkeeping needs."

This quote describes the comprehensive services offered by Pilot, the episode's sponsor.

• The hosts set out to explore Oprah's beginnings and business ventures.
• They recommend additional resources for listeners who want to delve deeper into Oprah's life, including the "Making Oprah" podcast and Kitty Kelley's biography.

"We're going to be covering her origin story and the business behind her."

The quote indicates the focus of the episode on Oprah's early life and business strategies.

• Oprah's birth and early childhood circumstances are described, including the unlikelihood of Vernon Winfrey being her biological father.
• Oprah's experiences of being raised by her grandmother, then her mother, and the family's tragedies are detailed.
• Her exposure to sexual abuse and the resulting trauma is discussed with a content warning for listeners.

"We're talking about a woman who owns her own cable network, gets presidents elected, so we can't cover it all here."

The quote acknowledges the breadth of Oprah's influence and the limitations of covering her entire life in one episode.

• Oprah's life-changing experiences, such as her inspiration from Diana Ross and the Supremes, are shared.
• The story of her pregnancy, the loss of her child, and her father's impactful advice are recounted.
• Oprah's transformation after returning to school and her ambition to become famous are highlighted.

"This is your second chance... I think God is giving you a second chance. And if I were you, I would use it."

Vernon Winfrey's quote to Oprah after the loss of her child serves as a pivotal moment in her life, encouraging her to seize her second chance.

• Oprah's early career in radio and television is outlined, including her success in beauty pageants and becoming the first black woman on Nashville television.
• The challenges she faced as a news anchor and her eventual transition to a morning talk show are discussed.
• Oprah's determination and unique appeal to audiences are emphasized as key factors in her rising popularity.

"I got down on my knees there and I ran my hand along all those stars on the street. And I said to myself, one day I'm going to put my own star among these stars."

Oprah's quote about her ambition to earn a star on the Hollywood Walk of Fame illustrates her determination and vision for fame.

• Speaker A spent childhood summers watching daytime television at a law firm where their parents worked.
• Shows like Oprah and Phil were part of the daily viewing, setting the stage for an understanding of the influence of daytime TV.
• This early exposure to television would later connect to the rise of influencers and the demand for content throughout the day.

"I watched Oprah all day and Phil, no way."

The quote emphasizes Speaker A's familiarity with daytime television shows, particularly Oprah, from a young age.

• Donahue pioneered a talk show format appealing to suburban housewives by addressing their interests and allowing direct audience engagement.
• The show featured a mix of human interest stories and celebrity guests, including groundbreaking moments like the first openly gay person on TV.
• The genre's origins can be traced back to morning news slots, targeting homemakers post-morning news.

"So what Donahue was doing was covering subjects in a talk show format, an interview talk show format that were he and his producers, who are mostly women, thought would be appealing to suburban housewives."

The quote outlines the strategic focus of Donahue's talk show, aiming to engage a specific audience segment through relevant content and interactive format.

• Oprah initially resisted transitioning to daytime TV, valuing the prestige of evening news anchoring.
• After being persuaded to host "People Are Talking," Oprah quickly realized her natural fit for the role and gained popularity, surpassing Donahue in Baltimore.
• Despite initial success, "People Are Talking" struggled in national syndication, leading to a canceled deal.

"Amazingly, oprah initially doesn't want to do it because, remember the evening news slot anchoring the evening news? That is what being a star means."

The quote reflects Oprah's initial hesitation to enter daytime TV, influenced by the traditional prestige associated with evening news anchoring.

• Syndication involves media rights distribution companies like King World licensing locally produced shows to air in multiple markets.
• King World, known for syndicating successful shows like "Wheel of Fortune," played a key role in expanding shows' reach and profitability.
• Syndicators and creators often negotiate revenue sharing or profit-sharing deals, with the potential for lucrative advances based on a show's success.

"The biggest syndicator at this point in time is a company called King World."

This quote introduces King World as a major player in the syndication industry, highlighting the company's significance in the distribution of television content.

• Oprah was recommended for a hosting role in Chicago by a former Baltimore producer, leading to a pivotal career opportunity.
• Dennis Swanson of WLS-TV in Chicago immediately recognized Oprah's potential and offered her a significant salary without requiring any personal changes.
• The success of "AM Chicago" led to its rebranding as "The Oprah Winfrey Show" and a national syndication deal, catapulting Oprah to national fame.

"So at the time, the station had a new boss, who is Debbie's boss? A man named Dennis Swanson."

The quote introduces Dennis Swanson as a key figure in Oprah's career, instrumental in her transition to a nationally syndicated show host.

• Advised by her new agent, Jeffrey Jacobs, Oprah began to focus on ownership and control over her content rather than just talent compensation.
• Her experience with "The Color Purple" and mentorship by Quincy Jones further reinforced the importance of ownership for power and wealth in Hollywood.
• Oprah's ambition to become a mogul was evident in her intention to not just star in productions but to own them.

"I intend to be the richest black woman in America. I intend to be a mogul."

Oprah's declaration of her ambition to be a mogul and the wealthiest black woman in America highlights her shift towards ownership and control in her career.

• The national debut of "The Oprah Winfrey Show" was an immediate hit, with Oprah's authentic and relatable approach resonating with a wide audience.
• An episode focusing on Oprah's weight loss journey became the highest-rated in the show's history, demonstrating the personal connection she had with viewers.
• Despite the problematic aspects of focusing on weight, Oprah's realness and vulnerability were key factors in her massive appeal.

"There's been so much hoopla about this premiere show that it's enough to give a girl hives. I mean, I've got them right now under my armpits."

Oprah's candid and humorous admission of nervousness during her national show debut exemplifies her authentic connection with the audience.

• Oprah Winfrey's public weight loss story is a recurring theme in media.
• She introduced her weight loss journey in a significant public manner, which became a constant topic in the tabloids.
• Oprah's self-worth was tied to her physical appearance, which she later regretted.

"Every time her weight changes, she gave them, as she says, on a platter."

This quote explains that Oprah feels she handed the media an ongoing story by making her weight loss so public. It highlights the negative aspect of her decision.

• Oprah is recognized as a sharp media businesswoman with a strategic approach to her brand and business.
• She understood the impact of her actions on media ratings and headlines.
• Oprah's business moves were calculated to maintain her presence in the media.

"Oprah, as I think we've hopefully described here, is like an exceedingly once in a generation sharp media businesswoman."

The quote underscores Oprah's exceptional business savvy and her ability to generate media attention and ratings strategically.

• Oprah's earnings increased significantly from being an employee to owning her show and production company.
• She transitioned from a salary of $200,000 to earning millions through savvy negotiations and ownership.
• Oprah invested her own money into building a production studio, signaling her confidence in her trajectory.

"She earns $31 million in royalties and salary from the King World contract in 1987."

This quote shows the substantial increase in Oprah's income once she renegotiated her contract, reflecting her success and business foresight.

• Harpo Media was founded by Oprah, who owned 80% of the company.
• The company marked Oprah's independence in the media industry, making her the first black woman to own a production studio.
• Harpo Media produced not only the Oprah Winfrey Show but also other media content.

"Oprah becomes the first black woman and only the third woman ever to own a production studio."

The significance of Oprah's achievement in founding Harpo Media is highlighted, showcasing her as a trailblazer in the media industry.

• Oprah had a keen sense of what content would resonate with audiences.
• She produced a made-for-TV movie, "The Women of Brewster Place," which became highly rated despite initial network reluctance.
• Oprah's understanding of her audience contributed to her success in various media ventures.

"She's got an eye for what's going to work. Like, she knows what will play."

This quote emphasizes Oprah's talent for identifying content that would be successful with viewers, demonstrating her deep understanding of her audience.

• The Oprah Winfrey Show drew millions of viewers, with unique weekly viewers reaching 40 to 50 million.
• Oprah's influence was so significant that her endorsement of products or books could lead to millions of sales.
• The show's content evolved over time to adapt to the changing media landscape, including the rise of the internet.

"At this time that we're currently in, in the story, in the early ninety s, Oprah would draw twelve to 13 million concurrent viewers every single day to her 04:00 p.m.. Show."

This quote illustrates the immense popularity of The Oprah Winfrey Show and its ability to attract a massive daily audience.

• Oprah's Book Club was a powerful platform that dramatically increased book sales.
• The club's selections often became bestsellers and had a significant impact on the literary market.
• Oprah's ability to influence book sales exemplified her broader impact on consumer behavior.

"That year, they are responsible, directly responsible, and they do special Oprah Book club editions of the book for $130,000,000 in book sales in literary fiction in 1996."

The quote highlights the economic impact of Oprah's Book Club on the book industry, demonstrating her influence on readers' choices.

• Oprah's media empire expanded through various deals, including a partnership with Discovery to create the Oprah Winfrey Network (OWN).
• The network initially struggled but later found success with content partnerships, such as with Tyler Perry.
• Oprah continued to innovate and adapt her business strategies to maintain her media presence.

"They renew it for 130,000,000 a year, or what works out to 130,000,000 a year in the revenue sharing."

This quote refers to the renewal of Oprah's contract, which continued to bring in significant revenue and contributed to the growth of her media empire.

• Oprah's influence extends beyond television to cultural phenomena such as the "Oprah effect."
• Her endorsements and recommendations had the power to create bestsellers and popularize products.
• Oprah's focus on authenticity and trust with her audience was key to her enduring success.

"Oprah's favorite things work, I think it's the first episode of each season was the Oprah's favorite things."

The quote explains one of the ways Oprah engaged with her audience, by sharing products she loved, which then became highly sought after due to her endorsement.

• Harpo, Oprah Winfrey's production company, saw significant financial growth from 1988 to 2008, reaching over $200 million in annual revenue.
• Oprah's renegotiation of deals consistently improved terms in her favor as her audience grew.
• Harpo's value plateaued in the late '90s but continued to grow financially.
• Forbes and other analysts struggle to estimate Harpo's current enterprise value and Oprah's net worth due to opaque deal terms in recent years.

"ion in 1988 all the way up to making like 200 plus million dollars a year by 2008."

This quote illustrates the financial trajectory of Harpo from its inception to a major revenue-generating entity by 2008.

"Her audience continued to grow until it plateaued in the late ninety s. But then she sort of got better and better terms each time, all the way until the show ended."

The quote indicates the growth pattern of Oprah's audience and how it influenced the improved deal terms she secured.

"What's not as clear is in all these deals that she's doing now, almost all of them are impossible to know the terms other than the discovery deal."

This highlights the difficulty in estimating the current value of Harpo and Oprah's wealth due to the lack of transparency in recent deals.

• Forbes' methodology for estimating Oprah's net worth involved adding up after-tax profit cash flows from Harpo over the years.
• The traditional business valuation approach is based on discounted future cash flows, not past profits.
• Harpo has investments in various properties, including a 25% stake in a massive cable network and a significant investment in Weight Watchers.

"I think we saw in the methodology for Forbes, they said they added up all the after tax profit cash flow to Oprah, that they suspect that they estimate Oprah had gotten from Harpo over the last 2030 years."

This quote describes Forbes' approach to calculating Oprah's net worth, which the speaker criticizes as not aligning with standard business valuation practices.

"Anybody who knows how to value businesses is you value them based on the discounted stream of future cash flows."

The speaker emphasizes the correct method for business valuation, which focuses on future cash flows rather than past profits.

• Harpo's assets include rights to shows and a back catalog potentially valuable to services like Disney+.
• The value of Harpo's back catalog, including the Oprah Winfrey Show, Dr. Phil, Dr. Oz, and Rachel Ray, is debated.
• There is speculation that a company like Disney could acquire Harpo, similar to their acquisitions of Lucasfilm and Marvel.

"Now, look at Harpo, right? You've got all the library of these rights to all of these shows, right?"

This quote points out the extensive library of content rights that Harpo possesses, which could be of high value.

"There's at least 30 or 40 episodes that must still get a lot of views."

The speaker is assessing the potential viewership and value of select episodes from the Oprah Winfrey Show's back catalog.

• Oprah's influence is significant, with the show receiving over 20 million letters, indicating a deep connection with fans.
• Her endorsement of products, books, and even political candidates, like Barack Obama, has had measurable effects.
• Oprah's early friendship with Barack Obama is believed to have influenced many votes in his favor during the election.

"There are many research analysts who say that he got a million votes in a very tight election that can be credited to Oprah."

This quote acknowledges Oprah's powerful influence on public opinion, particularly in the context of political elections.

• Harpo's business strategy involved monetizing Oprah's personal brand and leveraging her influence.
• The discussion includes the potential future of Harpo and Oprah's legacy without her active involvement.
• The value of Harpo is tied to Oprah's personal brand, but there is potential for the company to continue generating value independently.

"Harpo is worth a crap ton with Oprah, and I think a lot less without her."

The speaker is asserting that Oprah's personal involvement is a significant driver of Harpo's value.

"But they're still Oprah brand kind of."

This quote suggests that even without Oprah's direct involvement, the associated properties still carry her brand's influence.

• The future of Harpo and Oprah's wealth is speculated upon, including potential charitable donations and the stewardship of Harpo.
• The speakers contemplate the long-term impact of Oprah's financial decisions and the legacy she will leave behind.

"At some point, there needs to be a home for Harpo, especially because of this. Oprah doesn't have any biological heirs right now."

The quote raises questions about the future ownership and management of Harpo given Oprah's lack of direct heirs.

"Harpo, for sure, whether with Disney or somebody else, we almost have to."

This indicates the speakers' belief that Harpo will eventually be sold or acquired by a larger entity like Disney.