L.A.’s 50 Richest

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L.A.’s 50 Richest

Sumner Redstone tops the list of wealthiest Angelenos. Many billionaires increased their worth, but there were some losses, too.

BY ANDREW SIMONS

E verything with the rich seems to be magnified: The houses are bigger, the art collections more impressive, the swings in portfolio values more pronounced.

So it comes as little surprise that in a year of resurgent stock prices and escalating real estate, L.A.’s richest of the rich would find their fortunes rise in concert.

Pushing everyone down a peg was Sumner Redstone, chairman and chief executive of Viacom Inc., who made Los Angeles his home last year after marrying former schoolteacher Paula Fortunato. The couple took up residence in a $14 million Beverly Hills estate, bought from Sylvester Stallone.

With Redstone in the neighborhood, at $8.9 billion, the 117.6 percent gain in Kirk Kerkorian’s net worth was not enough to vault him back into the No. 1 position he held on the 2002 list.

After falling by more than 38 percent with the decline in the value of his Metro-Goldwyn-Mayer Inc. stock, the rebound of those shares helped send Kerkorian’s net worth to $7.4 billion.

Helped by a one-time, $8 per-share dividend paid by the Los Angeles-based movie studio netting him $1.2 billion tax-free thanks to new federal rules the value of holdings also increased as MGM shares climbed 75 percent in the last 12 months and MGM Mirage, in which he has a 56.8 percent stake, rose 60 percent.

Joining Redstone among the ranks of L.A.’s new billionaires are Patrick Soon-Shiong, founder of biotech firm American BioScience ($1.4 billion), and Roland Arnall, founder of sub-prime lender Ameriquest Mortgage ($1.2 billion).

There are 28 billionaires who now call the area home, up from 23 a year ago. Three who were on last year’s list as mere mega-millionaires have reached the billion-dollar class.

That includes Roy E. Disney ($1.02 billion). His campaign against Walt Disney Co. Chief Executive Michael Eisner (No. 48) made headlines, but Disney stock rose enough over the last 12 months to push the nephew of Walt Disney up from $850 million in 2003.

For George Joseph, founder of insurance firm Mercury General Corp., a 9 percent rise in the company’s stock made his 35 percent stake worth $1 billion. Alec Gores, the buyer of undervalued technology assets whose net worth was estimated last year at $775 million, saw that estimate reach $1.2 billion through sales and the turnaround of some operations.

Not all of the increases were just the result of Wall Street.

Investor Marvin Davis ($6.03 billion) realized gains thanks to substantial new oil finds, increasing the value of his petroleum assets to perhaps $1.6 billion.

Entrepreneur John Anderson ($1.3 billion) went on a real estate buying spree, purchasing a 122,000-square-foot shopping center in Woodland Hills and collecting more Westwood Village retail properties.

The last member of the list, Merv Griffin ($500 million) added to his net worth by selling the Beverly Hilton Hotel for $130 million.

Of the 46 who returned, only 11 saw their net worth decline. Another sign of rebound was the higher bar to join the club. Last year’s floor was set at $400 million to accommodate a stock market still in decline. That floor was raised by $100 million.

Not every investment rose in value.

Investor Michael Milken saw his net worth fall to $850 million after taking a hit on LeapFrog Enterprises Inc. The stock, which had traded as high as $47.30 per share in the last 12 months, has dropped to about $20.

Legal woes also took their toll. Developer Alan Casden ($652 million) settled a battle with Apartment Investment & Management Co., the real estate investment trust that bought his apartment portfolio for $1.5 billion in 2001, for $83 million, including $48 million in out of pocket costs. Gary Winnick, former chairman of telecommunications firm Global Crossing Ltd., paid $55 million of a $325 million settlement of roughly 70 lawsuits brought by former Global Crossing employees and investors against executives.

Some saw their net worth decline because they just wrote more checks.

The net worth of philanthropist Eli Broad, number one last year, fell to $5.26 billion, diminished in part by gifts totaling $409 million. That included a $100 million pledge toward the development of the Eli and Edythe L. Broad Institute, a joint venture of Harvard University and the Massachusetts Institute of Technology that will find medical applications from human genome research.

Television producer Marcy Carsey, a partner at Carsey-Werner-Mandabach, contributed $1 million to groups focused on defeating President Bush. She also made a $2.5 million leadership gift to the University of California, Santa Barbara, for the new Center for Film, Television and New Media.

Entertainment industry wealth had a mixed year.

David Geffen, who co-founded DreamWorks SKG with Steven Spielberg and Jeffrey Katzenberg in 1994, had a tough year as DreamWorks’ box office receipts were halved, to $238 million in 2003. Even so, the rest of Geffen’s portfolio improved, giving him a $100 million gain over last year. Spielberg saw a $200 million gain. Katzenberg, whose wealth is dominated by his interest in DreamWorks, saw a $50 million decline.

And A. Jerrold Perenchio, who runs Univision Communications Inc., got a boost in part from his 10 percent stake in the Spanish-language broadcaster.

sumner redstone

Net Worth: $8.9 billion

Last Year: Not on list

Age: 80

Residence: Beverly Hills

Source of Wealth: Media, entertainment

Background: Chairman and chief executive of Viacom Inc. Orchestrated growth of company into the third-largest U.S. media company. Assets include CBS and MTV networks, Paramount Pictures, publisher Simon & Schuster and Infinity Broadcasting, in addition to radio and television stations and outdoor advertising business. Married former schoolteacher Paula Fortunato in April 2003 and took up residence in $14 million Beverly Hills home, which he bought from Sylvester Stallone. Formerly based in New York, he now spends most of his time here. Through movie theater operator National Amusements Inc., he controls 93.6 million, or 70.8 percent, of Viacom’s Class-A shares, which traded recently at $39 each. Price is down 13 percent from the year-ago period and significantly off summer 2000 high of more than $70 per share. Citing under-valuation, company bought back $937 million of its stock last year; may buy even more in 2004. Strong first quarter results, with advertising revenues up 21 percent. Ongoing reports of tension with President Mel Karmazin, although the two insist they get along just fine. Daughter Shari, also a Viacom director, has taken a more active role. Redstone increased stake in videogame publisher Midway Games Inc. to more than 50 percent, seeking to place new members on the board, including daughter Shari. Earned Harvard undergraduate degree in two and half years. Served during World War II in the Military Intelligence Division, breaking Japanese code. After brief law career, joined father’s National Amusements Inc. in 1954 and built it into 1,400-screen chain. National Amusements acquired controlling interest in Viacom in 1987. Active in the Dana-Farber Cancer Institute and the American Cancer Society. Supports John Kerry.

kirk kerkorian

Net Worth: $7.4 billion s 117. 6%

Last Year: $3.4 billion

Age: 86

Residence: Beverly Hills

Source of Wealth: Investments

Background: Stocks much kinder this year. Volatile MGM bounced back to reach January 2002 levels of $20 per share, up more than 75 percent since last May. Controls 74 percent; generous one-time dividend of $8 per share issued earlier this month meant roughly $1.4 billion tax-free for Kerkorian. Company withdrew $11.5 billion bid for Vivendi Universal’s entertainment unit last July and may finally be purchased itself. In talks with Sony Corp. about possible $5 billion acquisition, MGM postponed shareholders meeting to consider “strategic alternatives.” Controls 81.2 million MGM Mirage shares, which are up nearly 60 percent in the last 12 months. Plans for a 928-room hotel tower at Las Vegas’ Bellagio casino in the works. Lawsuit with DaimlerChrysler over purchase of Chrysler Corp. continues (though he no longer owns the stock). Testified in December, trial wrapped in February and decision expected by year’s end. Seeks $1 billion, saying he was deceived about the 1998 merger. Fresno-born son of Armenian immigrants, started peddling newspapers in Los Angeles at age nine, became amateur boxer, flew in Royal Air Force during WW II. Started amassing fortune in 1947 with purchase of charter airline in Los Angeles. Owns stakes in both MGM and MGM Mirage through private investment company Tracinda Corp.

marvin davis

Net Worth: $6 billion s 9.1%

Last Year: $5.5 billion

Age: 78

Residence: Beverly Hills

Source of Wealth: Oil, real estate, entertainment

Background: Good year thanks to big oil finds and high petroleum prices. Listed his legendary 11-acre Beverly Hills estate, “The Knoll,” for $70 million. Grandson Jason Davis, 20, has his own half-hour reality sitcom on NBC to be aired later this year. Son of a wildcatter, struck it rich in oil, then Denver real estate. Tried movies with Twentieth Century Fox. Bought out onetime fugitive Marc Rich and later sold studio to Rupert Murdoch. Bought and flipped Beverly Hills Hotel, Pebble Beach resort and Fox Plaza in Century City. Known in recent years as more of a tire kicker. Failed at several recent big buys, including attempts at troubled US Airways and attempt to buy Vivendi’s entertainment assets.

Eli broad

Net Worth: $5.3 billion t 10.2%

Last Year: $5.9 billion

Age: 70

Residence: Brentwood

Source of Wealth: Homebuilding, insurance

Background: Most active now as a booster of the Los Angeles business and cultural scene. Has led efforts to develop the Museum of Contemporary Art, backed candidates for the board of the Los Angeles Unified School District, jump-started Walt Disney Concert Hall and is turning his attention and financial backing to the redevelopment of Grand Avenue. Appears tired of pumping time and money into bringing a pro football team to Los Angeles and says the ball is now in the NFL’s court. Gave away $409 million of his fortune last year, including a $100 million pledge toward the development of the Eli and Edythe L. Broad Institute, a joint venture between Harvard University and the Massachusetts Institute of Technology that will find medical applications from human genome research. Renowned art collector. Formed homebuilder KB Home and insurance firm SunAmerica, which was later sold to American International Group in 1998 for $18 billion.

David geffen

Net Worth: $3.5 billion s 2.9%

Last Year: $3.4 billion

Age: 61

Residence: Malibu

Source of Wealth: Entertainment

Background: Co-founded DreamWorks SKG with Steven Spielberg and Jeffrey Katzenberg in 1994. Last year was a tough one for the studio, with domestic box office receipts halved, to $238 million. Studio struggling in first five months of 2004; banking on “Shrek 2” and “The Terminal” to revive box office. After securing distribution deal for films and videos, Vivendi Universal SA bought DreamWorks Records for an estimated $100 million. Started out in William Morris Agency mailroom, later becoming an agent. Founded Geffen Records in 1980 and sold it a decade later to MCA, netting $710 million when MCA sold it to Matsushita. Avid art collector; paid estimated $40 million for Jasper Johns painting. Donated $200 million to UCLA School of Medicine.

a. jerrold

perenchio

Net Worth: $2.9 billion s 11.5%

Last Year: $2.6 billion

Age: 73

Residence: Beverly Hills

Source of Wealth: Entertainment

Background: Chairman and chief executive of Univision Communications Inc., which saw its first-quarter 2004 profits more than double on news of record ratings for its Spanish-language radio and television broadcasts. Teamed up with Emilio Azcarraga, head of Mexican broadcaster Grupo Televisa to buy the struggling company from Hallmark in 1992. Bankrolled first Spanish-language soap opera, or telenovela, shot and produced entirely in Los Angeles. Project debuted in December. Notoriously media-shy; does not take a salary. Shares are up 7.8 percent in the last 12 months. Helped raise $3.5 million for the Republican National Committee at a fundraiser at his Beverly Hills home. Sued late last year by environmentalists who claimed his private Malibu golf course was responsible for pesticides and fertilizers discharged into Malibu Lagoon and Surfrider beach. The case is still pending in L.A. Superior Court.

steven ferencz udvar-hazy

Net Worth: $2.6 billion s 44.4%

Last Year: $1.8 billion

Age: 58

Residence: Beverly Hills

Source of Wealth: Aircraft leasing

Background: Sold, along with Leslie and Louis Gonda, International Finance Lease Corp. to insurance giant American International Group Inc. for stock. Shares of AIG are up more than 24 percent in the past year. Holds $150 million in shares of other public companies, more than $80 million in real estate, $63 million in what he termed “other investments” and an art collection valued at $14.5 million. Chairman and chief executive of the ILFC unit, founded in 1973. Company went public in 1983, became nation’s leading lessor and financier of commercial jet aircraft. Also director of Skywest Inc., parent of Skywest Airlines. Certified jet pilot. Received flak for showing a restored version of the Enola Gay, the airplane that dropped the atomic bomb on Hiroshima, in the National Air & Space Museum’s Steven F. Udvar-Hazy Center in Washington, D.C. Born in Budapest in 1946, migrated to U.S. in 1958.

steven spielberg

Net Worth: $2.4 billion s 9.1%

Last Year: $2.2 billion

Age: 56

Residence: Pacific Palisades

Source of Wealth: Entertainment

Background: Director of top-grossing films “Jaws,” “E.T.” and “Jurassic Park;” received best director Oscars for “Schindler’s List” and “Saving Private Ryan.” Started DreamWorks SKG with David Geffen and Jeffrey Katzenberg in 1994. Said to collect percentages of Universal theme park receipts in Florida and Japan for consultant work, part of a deal set up in the 1980s to reward his creative success. Next film is “The Terminal” with Tom Hanks, coming out in June. Future projects include “Indiana Jones 4” (directing) and “Jurassic Park IV” (producing). Regularly ranked as one of the most powerful people in Hollywood, has received numerous honors including being knighted by British Empire.

bradley wayne

hughes & family

Net Worth: $2 billion s 17.6%

Last Year: $1.7 billion

Age: 70

Residence: Malibu

Source of Wealth: Storage facilities

Background: Chairman of Glendale-based Public Storage Inc. got a boost as stock climbed 23 percent in the last 12 months. Hughes and his family control 46 million shares of the business, which started with a single property in 1972; it merged 18 affiliated REITs into Public Storage from 1994 to 1998. Today, the real estate investment trust has interests in nearly 1,400 storage facilities in 37 states. Hughes owns two adjacent beachfront properties of two acres each. Had $60,000 salary as chief executive until his retirement in March. Owns several racehorses; sold 10 percent interest in Kentucky Derby fourth place finisher Atswhatimtalknbout to Steven Spielberg and other Hollywood executives.

ron burkle

Net Worth: $1.9 billion s 11.8%

Last Year: $1.7 billion

Age: 51

Residence: Beverly Hills

Source of Wealth: Supermarkets, investments

Background: Busy year for his private equity firm Yucaipa Cos. Sold off his 51 percent stake in Golden State Foods, which stocks McDonald’s Corp. with hamburger patties and buns and condiments, for $110 million. Dove into the world of hip-hop by buying piece of Sean “P. Diddy” Comb’s clothing company (featuring the Sean Jean brand) for $100 million; will become partner in the company. Bought Louisiana home-style cooking chain Piccadilly Cafeterias out of bankruptcy for $80 million. Made big money in the food industry with Yucaipa’s ownership of Fred Meyer, Food 4 Less and Ralphs supermarket chains, all sold to Kroger in 1999. Flexed political muscle by helping Democratic presidential candidate John Kerry raise $3 million at fundraisers hosted at his San Diego and Los Angeles homes. Long-time connections with former President Bill Clinton.

david murdock

Net Worth: $1.9 billion s 18.8%

Last Year: $1.6 billion

Age: 81

Residence: Los Angeles

Source of Wealth: Real estate, agriculture

Background: Revenues are up at Dole Foods Co. since Murdock took it private in March 2003, but company carries more than $1.9 billion in debt, with bonds downgraded to “junk” level last year due to the buyout. Murdock has completed 11 such going-private deals, including real estate firm Castle & Cooke Inc. High school dropout who made fortune, lost it, made it again in California real estate market. Healthy eating advocate, broke ground in March on well-being complex that will include medical facilities and a five-star hotel next to Dole headquarters in Westlake Village. Breeder of more than 200 Arabian horses; has orchid collection with 30,000-plus plants. Republican party supporter.

Tom gores

Net Worth: $1.8 billion s 5.9%

Last Year: $1.7 billion

Age: 39

Residence: Beverly Hills

Source of Wealth: Leveraged buyouts

Background: Platinum Equity, the company he founded when he left older brother Alec’s Gores Technology Group in 1995, is among the largest private companies in Los Angeles, as ranked by revenues. Further solidified by buying up Hays Logistics, a supply chain company and unit of Hays Plc, for $174 million in December. The move brings another 16,000 workers into the Platinum fold and overall annual revenues to $5.5 billion. Platinum targets mature technology-related businesses and legacy products that are past their prime and ripe for turnaround. In a deal brokered by another brother, Paradigm agency co-founder Sam Gores, a group backed by both Tom and Alec bought 2.5 million shares of Canadian film and television production company Lions Gate Entertainment from founder Frank Guistra for $5.5 million. Value of stake has increased to $16.25 million with yearlong stock run-up.

haim saban

Net Worth: $1.7 billion s 6.3%

Last Year: $1.6 billion

Age: 59

Residence: Beverly Hills

Source of Wealth: Entertainment

Background: Known for “Mighty Morphin’ Power Rangers” and “Teenage Mutant Ninja Turtles.” Personal take was almost $1.5 billion in 2001 Disney/Fox Family deal. After much delay, bought 36 percent stake and majority voting rights in ProSiebenSat.1 Media AG, Germany’s largest private TV broadcaster, from KirchMedia GmbH with aid of private equity firms. With overhauled management and reduced costs, broadcaster posted profit in first quarter and shares have more than doubled since last August. Also eyeing music-TV broadcaster Viva Media AG and British media company ITV Plc. Born in Egypt, moved to Israel at age 12. Staunch Democratic fundraiser; also pledged $100 million to health and education entities last year, including $40 million to Childrens Hospital Los Angeles.

franklin otis booth jr.

Net Worth: $1.7 billion s 21.4%

Last Year: $1.4 billion

Age: 80

Residence: Bel-Air

Source of Wealth: Investments

Background: Still holds 17,000 shares of Berkshire Hathaway, valued at more than $88,100 each. Stock up 20 percent since last May. Great-grandson of Times Mirror founder Harrison Gray Otis. Entered college at age 16, received engineering degree from Caltech and M.B.A. from Stanford. Stint as vice president of Los Angeles Times; left to start printing business that failed. Met Charles Munger and invested $1 million in Warren Buffett’s Berkshire Hathaway in 1963. Real estate holdings include 2,500-acre orange grove and 4,000-acre cattle ranch. Has contributed to President Bush’s re-election campaign.

louis gonda

Net Worth: $1.6 billion s 14.3%

Last Year: $1.4 billion

Age: 55

Residence: Beverly Hills

Source of Wealth: Aircraft leasing

Background: Saw spike in wealth thanks to American International Group stock. Partners Steven Udvar-Hazy and father Leslie Gonda co-founded International Lease Finance Corp. in 1973 and sold out in 1990 for AIG stock. Started Lexington Commercial Holdings Inc. to cash in on real estate. Entered other markets through Lexington Entertainment Group and Lexington Funding LLC. Established partnership with Miramax in 2003 to launch start-of-the-art facility providing high-end digital graphics and image editing. Lexington is partner on two mixed-use projects in Beverly Hills involving luxury hotel and condominiums, office space and a public plaza. Born in Venezuela. Also owns stakes in technology company Advanced Remote Communications Solutions and StorAmerica, a national chain of self-storage units.

charles T. munger

Net Worth: $1.5 billion s 15.4%

Last Year: $1.3 billion

Age: 80

Residence: Los Angeles

Source of Wealth: Investments

Background: Came to Los Angeles as lawyer in the 1950s and still has name on door of Munger Tolles & Olson. Met famed investor Warren Buffett in 1959. Vice chairman at Berkshire Hathaway; owns more than 16,000 shares, which were trading recently at just above $88,100 each. Chairman and chief executive at Wesco Financial (80 percent Berkshire-owned), as well as chairman at Daily Journal, which has seen its stock rebound on improved net income. Owns less than $4 million through Munger Marshall & Co. Sits on board of Costco. Known for demanding analysis of investments. Strongly opposes legalized gambling (“I think it is disgusting”). Donated 100 shares of Berkshire stock to private Harvard-Westlake School in December. Like Buffett, a lover of bridge; morning regular at the downtown California Club, where he often sits alone in the dining room reading the papers.

leslie gonda

Net Worth: $1.4 billion s 16.7%

Last Year: $1.2 billion

Age: 84

Residence: Beverly Hills

Source of Wealth: Aircraft leasing

Background: Co-founded International Finance Lease Corp. with son Louis Gonda and friend Steven Udvar-Hazy with $150,000 and a $1.7 million bank loan in 1973. Left the American International Group unit this year, where he had held a director position. Born in Hungary. Holocaust survivor fled to Venezuela after World War II and later came to U.S. Gives heavily to philanthropic causes through Leslie and Susan Gonda (Goldschmied) Foundation, formed in 1988. Donated small amount to Walt Disney Concert Hall. Also supports Ben-Gurion University, Bar-Ilan University in Israel, UCLA, Mayo Clinic and City of Hope, for research into diabetes, neuroscience, genetics and other medical research.

patrick soon-shiong

Net Worth: $1.4 billion

Last Year: Not on list

Age: 51

Residence: Los Angeles

Source of Wealth: Pharmaceuticals

Background: Controversial founder of privately held biotech firm American BioScience owns 80 percent of the company, which in turn owns 68.4 percent in American Pharmaceutical Partners Inc., a publicly traded maker of injectable generic drugs. Stock has been bouncing around on news of breast cancer drug Abraxane in the pipeline. Fast track application recently submitted to FDA; company looking for approval in time for fourth-quarter launch. Drug trial results published in December show Abraxane slowed tumor growth more than competitor drug Taxol but questions raised about study methodology. Company also facing shareholder lawsuits over loss in stock value due to allegedly misleading statements about Abraxane. Born in South Africa in 1952; graduated medical school fourth in class of 189. Joined UCLA medical school faculty in 1983, explored concept of encapsulated delivery of drugs for diabetes and left to start VivoRx to pursue research. Started second company, which became American BioScience, for cancer research and eventually founded and took public APPX. Has been sued twice by brother Terrence.

john e. anderson

Net Worth: $1.3 billion s 8.3%

Last Year: $1.2 billion

Age: 86

Residence: Bel-Air

Source of Wealth: Investments

Background: Owner of Topa Equities, holding company for more than 40 companies; investments in real estate, beverage distributors, car dealerships, insurance and agriculture, with revenues in the $1 billion range. Real estate buying spree has continued, with a 122,000-square-foot shopping center in Woodland Hills and small retail space on Westwood Boulevard. In 1998, sold what is now Mellon 1st Business Bank and netted $180 million. Namesake of Anderson School of Business, result of a $15 million donation in 1987. Son of Minneapolis barber, came to UCLA for undergraduate work on hockey scholarship. Went to Harvard for MBA; enlisted in Navy and passed CPA exam on shore leave. Got law degree at night while working for Arthur Andersen. Started Ace Beverage Co. in 1956, an early distributor of Budweiser. Plans to turn charitable foundation into major force, building it from current $5 million to around $100 million.

frederick “ted” field

Net Worth: $1.2 billion

Last Year: $1.2 billion

Age: 50

Residence: Beverly Hills

Source of Wealth: Inheritance, entertainment

Background: Resigned as chief executive of ArtistDirect Inc., where he was charged with transforming the lagging business into a traditional music company. Remains partner and head of ArtistDirect Records, which has lost $45 million as it vies against the major label competition. Company now exists largely in name only, as operations have been “significantly downsized” and there are no employees. Industry background dates to Field’s founding of Interscope Records, which he sold to Universal for $330 million. His Radar Pictures produced the Tom Cruise film “Last Samurai.” Projects in the pipeline for Radar include “Hip-Hop Cops” with director Peter Berg and an untitled film in the “Mask” series starring Jamie Kennedy. Much of his wealth comes from his status as an heir to Marshall Field & Co. fortune. Thrice divorced, he’s been known over the years as a man about town.

alec gores

Net Worth: $1.2 billion s 54.8%

Last Year: $775 million

Age: 51

Residence: Beverly Hills

Source of Wealth: Leveraged buyouts

Background: Filed this month to take a new closed-end fund, Gores Investment Corp., public. Plans to raise as much as $250 million to invest in the debt of medium-sized technology and telecommunications companies. Mainstay business Gores Technology Group is going strong, taking over ownership of software, hardware, technology services and telecommunications companies with revenues between $10 million and $1 billion. Agreed to buy the troubled Web hosting and networking arm of British company Cable & Wireless for $125 million. Announced the closing of its first private equity fund worth $400 million. Founded the company in the late 1980s after selling off computer systems business he had started in his father’s basement. Brother Tom worked with Alec until forming Platinum Equity in 1995. Highly competitive, the two joined in an unsuccessful bid for assets of Global Crossing Ltd. in 2002. Alec’s biggest splash came in 2002 acquisition of educational software developer The Learning Co., which it acquired from Mattel Inc. for no cash and a share of future profits. Sold business a year later to Riverdeep Group Plc for $40 million in stock and $20 million in debt.

George Randolph hearst jr.

Net Worth: $1.2 billion s 9.1%

Last Year: $1.1 billion

Age: 74

Residence: Los Angeles

Source of Wealth: Inheritance

david hearst jr.

Net Worth: $1.2 billion s 9.1%

Last Year: $1.1 billion

Age: 57

Residence: Los Angeles

Source of Wealth: Inheritance

Background: Cousins are heirs to the fortune built by their grandfather, media tycoon William Randolph Hearst, and great-grandfather, gold and sliver mine owner George Hearst. George became chairman of Hearst Corp. after death of Randolph Hearst, William Randolph’s last surviving son. Proposal last year by Hearst Corp. to sell 1.8 square miles of coastal land between L.A. and San Francisco and put 128 square miles under conservation received mixed reception from environmentalists and is still pending. David’s sister, Millicent Boudjakdji, president of the William Randolph Hearst Foundation and a member of the Richest List, died in 2002. In addition to the San Simeon estate, Hearst family has holdings in local and cable television stations and newspapers.

roland arnall

Net Worth: $1.2 billion

Last Year: Not on list

Age: 65

Residence: Holmby Hills

Source of Wealth: Financial services

Background: Founded sub-prime lender Ameriquest Mortgage in 1980 as Long Beach Savings & Loan. Didn’t become major sub-prime lender until it sold off depository operations in 1994 and wholesale mortgage operations in 1997. Reorganized retail business under current name. Said to be intensely private, Arnall might be considering a public offering for his company, though no details have been made public. Politics span both sides of aisle: Was a big donor to former Gov. Gray Davis, who officiated at his wedding in 2000; also a donor to President Bush’s re-election bid. Bought 650-acre Aspen, Colo., ranch from movie executive Peter Guber for $46 million. Also purchased singer Engelbert Humperdinck’s $30 million, 10-acre compound in Holmby Hills.

john shea & family

Net Worth: $1.1 billion

Last Year: $1.1 billion

Age: 77

Residence: Pasadena

Source of Wealth: Homebuilding

Background: John Shea heads a company founded by his grandfather in the 1880s as a plumbing supply business. His father moved it from plumbing to a multi-division corporation that helped construct the Golden Gate Bridge and Hoover Dam. Today, Shea is the largest privately owned homebuilder. Company plans to redevelop the 33.5-acre University of Colorado Health Sciences Center campus, which will include a mixed-use community with residential units, retail and office space. John and cousins Peter and Edmund, who worked together on tunnel projects growing up, now split ownership of the company. John has the master stake with 50 percent.

alfred e. mann

Net Worth: $1.1 billion

Last Year: $1.1 billion

Age: 78

Residence: Mulholland Estates

Source of Wealth: Biomedical devices

Background: Expected to cash in $56.7 million when he sells 65.9 percent stake in biopharmaceutical company MannKind Corp., which has filed for an $86.25 million initial public offering. Will remain chairman and chief executive, taking a $100,000-per-year salary, according to filings. Has been a prolific producer of biotech companies, founding Medical Research Group Inc. and MiniMed. In 2001, sold off both companies to Medtronic Inc., which produced $3.7 billion in cash and stock. Has announced intention to give $100 million to the Technion-Israel Institute of Technology to start a biomedical engineering center.

roy e. disney

Net Worth: $1 billion s 17.6%

Last Year: $850 million

Age: 74

Residence: Toluca Lake

Source of Wealth: Inheritance, entertainment

Background: An unlikely boat rocker, the nephew of Walt Disney made headlines when he resigned as a director, along with ally Stanley Gold. Claimed he was ousted for his outspoken opposition to then-Chairman and Chief Executive Michael Eisner. At the forefront of shareholder rebellion that stripped Eisner of chairman’s title (he’s still agitating for full removal). Though complaining that Disney management has not maximized shareholder value, he became a billionaire thanks to a 28 percent increase in Disney’s stock over the last year and the sale in 2003 of 800,000 shares. Inherited large portion of Disney shares currently valued at $382 million. Chairman of investment company Shamrock Holdings Inc., with estimated $2 billion under management. Has spent a lot of time in New Zealand lately racing an 86-foot yacht; owns a castle in Ireland.

george joseph

Net Worth: $1 billion s 8.1%

Last Year: $925 million

Age: 82

Residence: Los Angeles

Source of Wealth: Insurance

Background: Founded Mercury Casualty Corp. in 1961; changed named to Mercury General Corp. after going public in 1985. Owns 35 percent of stock, which is up 9 percent since last May. Mercury became third-largest auto insurer in California in 2003, moving up from sixth place. Expanded coverage in New Jersey last August and in Arizona last month. Higher premium prices improving the bottom line. Chief supporter of a “longtime customer discount” bill, taking heat from consumer advocate groups upset about it being signed into law by outgoing Gov. Gray Davis. Charges filed in February accusing Mercury of defrauding consumers through deceptive ads that misrepresented premiums by omitting broker fees. The company denies wrongdoing. Started career as actuarial trainee at Occidental Life, grew jealous of paychecks in sales department and subsequently became an entrepreneur.

edward roski jr.

Net Worth: $977 million s 3.7%

Last Year: $942 million

Age: 65

Residence: Toluca Lake

Source of Wealth: Real estate

Background: His Majestic Realty is developing massive 424-acre Beltway Business Park in southwest Las Vegas with Thomas & Mack Co. Together, firms are responsible for 6.3 million square feet of development in the Las Vegas Valley. Known for pulling long hours, sometimes working from 7 a.m. to 1 a.m. Part owner of the Los Angeles Kings, he also has a small stake in the Los Angeles Lakers, the most valuable team in the NBA at $447 million. Built Staples Center with Denver-based billionaire Philip Anschutz. Has teamed up with Anschutz and Casey Wasserman to bring an NFL team to Los Angeles. Was a dominant figure in the build-out of City of Industry. Native Angeleno, played football at the University of Southern California and was a Marine before jumping into Majestic, the family business, in the 1960s. Loves sports cars.

donald sterling

Net Worth: $949 million s 0.6%

Last Year: $943 million

Age: 67

Residence: Beverly Hills

Source of Wealth: Real estate

Background: The real estate magnate and owner of perennially losing Clippers basketball franchise spent much of the year entangled in legal matters. The California Supreme Court will hear arguments in his dispute with Malibu property owner Larry Taylor over the validity of a deal for Sterling to buy Santa Monica apartment properties. Sterling was also sued by a former employee of his real estate business for sexual harassment and by a housing rights group for allegedly discriminating against blacks and Latinos. A U.S. District Court Judge issued a preliminary injunction in August halting Sterling from using the word “Korean” in his apartment’s names or in marketing. His company, Donald Sterling Corp., said it had already complied with the ruling. Company owns a batch of apartment buildings scattered throughout Los Angeles and Orange counties, as well as the Beverly Hills Plaza Hotel and Malibu Yacht Club. Clippers are still considered by many to be the worst team in all of sports but the franchise turns a consistent profit by maintaining a low payroll.

michael milken

Net Worth: $850 million t 4.5%

Last Year: $890 million

Age: 57

Residence: Los Angeles

Source of Wealth: Investments

Background: Has taken a hit on LeapFrog Enterprises Inc. stock after first quarter sales decline at educational toy-maker. Still, LeapFrog is up 75 percent from IPO price in July 2002. Holding company Knowledge Universe, which bought LeapFrog in 1997, dispersed most of its remaining shares to Milken, his brother Lowell, and business partner Oracle Corp. Chairman Lawrence Ellison in April. Graduated UC Berkeley for undergraduate and Wharton for MBA. Started at Drexel Burnham Lambert in 1969, became head of junk bond trading. Indicted 20 years later on securities fraud, pleaded guilty to six felony counts, served 22 months in prison and paid over $200 million in fines. In 1996, co-founded Knowledge Universe with Lowell and Ellison. Has lost 10 family members to cancer. Diagnosed with prostate cancer in 1993, now in full remission. Major supporter of education and cancer research through Milken Family Foundation and the Prostate Cancer Foundation. Founded think tank FasterCures last year, aimed at shortening time to find cures and improving treatment for diseases.

Robert Addison Day Jr.

Net Worth: $812 million s 24.9%

Last Year: $650 million

Age: 60

Residence: Beverly Hills

Source of Wealth: Financial management

Background: Founder and large stakeholder in TCW Group sold 51 percent interest in 2001 to French bank Groupe Societe Generale SA for $880 million in stock. Societe Generale stock has risen 25 percent in the last 12 months. Started Trust Co. of the West in 1971 with $1.5 million from investors. Chairman of W.M. Keck Foundation, oversees $1 billion in assets. Maternal grandfather, William M. Keck, founded Superior Oil Co. Foundation makes grants in medical research, science and engineering. Republican party supporter.

jeffrey

katzenberg

Net Worth: $800 million t 5.9%

Last Year: $850 million

Age: 53

Residence: Beverly Hills

Source of Wealth: Entertainment

Background: Grew up on Park Avenue and was a childhood friend of Walt Disney Co. Chief Executive Michael Eisner. Started entertainment career in 1975 as an assistant to Barry Diller at Paramount Pictures, moving quickly through the ranks to become president at age 31. Head of feature production at Disney from 1984 to 1994. Falling out with Eisner resulted in his departure and a court battle over unpaid compensation. Received $250 million judgment. Co-founded DreamWorks SKG with Geffen and Spielberg in 1994. Studio struggled at the box office last year; none of its movies hit the $100 million mark. Co-producing reality boxing show “The Contender” for NBC, set to air in January. Democratic supporter, gave directly to four presidential hopefuls in latest cycle.

william barron hilton

Net Worth: $720 million s 40%

Last Year: $514 million

Age: 76

Residence: Holmby Hills

Source of Wealth: Hotels

Background: Some reshuffling at the top of Hilton Hotels Corp. has him sharing the chairman position with a non-Hilton family member, Chief Executive Stephen Bollenbach. He also relinquished the role of president to Chief Financial Officer Matthew Hart. Generally has taken a backseat in business operations. Owns more than 23 million shares of Hilton, which owns, manages or franchises more than 2,000 hotels, and almost 24 million shares of Caesar’s Entertainment (formerly Park Place). Hilton stock has rebounded over the last year, trading just below its 52-week high of $17.95. Caesar’s has done even better, rising 73 percent.

david gold & family

Net Worth: $710 million t 25.3%

Last Year: $950 million

Age: 71

Residence: Mid-Wilshire

Source of Wealth: Discount retail

Background: Stock down more than 30 percent from last year due to disappointing profits, particularly in Texas operations. Also faces class-action lawsuit over wages. Son of Russian immigrant. Started out running liquor store in downtown Los Angeles. While there, noticed items priced 99 cents sold better than those priced a few pennies more. Opened first 99 Cents Only outlet in Inglewood in 1982. Took company public in 1996 and now operates 195 stores in California, Texas, Arizona and Nevada. Very much a family affair. David Gold’s sons Howard and Jeff are senior vice presidents and son-in-law Eric Schiffer is president. Family holds about third of the company through direct ownership and Au Zone Investments #3 LLC partnership. Plans to open 48 stores in existing markets in 2004 and launch new sales strategy in Texas.

lowell j. milken

Net Worth: $670 million t 4.3%

Last Year: $700 million

Age: 55

Residence: Los Angeles

Source of Wealth: Investments

Background: Younger brother of Michael, also attended UC Berkeley. Received law degree from UCLA and joined L.A. firm Irell & Manella. Left in 1978 when Michael moved to L.A. Worked as brother’s tax consultant and main adviser at Drexel Burnham Lambert. Also indicted for securities fraud; charges were dropped when Michael pleaded guilty. Head of Milken Family Foundation, which focuses on education and medical research. Founded Milken Archive of American Jewish Music. Involved in international real estate, chairing London-based Heron International, a property investment and development company. Decline in stock value of LeapFrog Enterprises Inc., part of the Knowledge Universe orbit of companies, nipped into Milkens’ net worth.

Alan casden

Net Worth: $652 million t 6.9%

Last Year: $700 million

Age: 57

Residence: Beverly Hills

Source of Wealth: Real estate

Background: Real estate high-flyer had a tough 2003. A legal battle with Apartment Investment & Management Co., the real estate investment trust that bought his apartment portfolio for $1.5 billion in 2001, ended with an $83 million settlement including $48 million out of Casden’s pocket. Eleven of his subcontractors and one of his executives were indicted for allegedly handing out illegal campaign contributions to local politicians. Failed in bid to buy Dodgers from News Corp. He was awarded $1.6 million in a countersuit filed against his brother, who sued to recover severance and unpaid dividends after leaving Alan’s real estate company, but the award was overturned. One bright spot was the recent Planning Commission approval of his $100 million Westwood Village mixed-use project, despite earlier opposition from local merchants (the L.A. City Council has yet to consider the plan). Trained as an accountant, Casden got into real estate in 1975. Donated $100,000 to 2000 Democratic National Convention.

robert petersen

Net Worth: $642 million s 13.2%

Last Year: $567 million

Age: 77

Residence: Beverly Hills

Source of Wealth: Publishing

Background: Publishing magnate has once again put up for sale Jesse James’ ranch hideout in San Luis Obispo County. He tried to sell the 14,880-acre spread in 2001 for $27.5 million but deals fell through. Now puts a price tag of $19.5 million on the estate, which includes 260 acres of vineyards, a 1,200-square-foot house, bunkhouse, barn, helicopter pad and five wells. Sold off part of his gun collection at a well-publicized auction in Anaheim. Controls 1.4 million shares in San Diego pharmaceutical firm Hollis Eden, value of which has declined 8.7 percent over last 12 months. Also has a 40 percent stake in privately held restaurant franchiser Kahala Corp. Cashed in interest in Petersen Publishin, in 1996.

aubrey chernick

Net Worth: $641 million s 50.1%

Last Year: $427 million

Age: 55

Residence: Los Angeles

Source of Wealth: Software

Background: Agreed this year to sell Candle Corp. to International Business Machines Corp. for undisclosed amount. Software and services company had been seeing years of declining revenues because of lagging mainframe market. Company reported 2003 revenues of $271 million, down nearly 15 percent from the year earlier level. Typical IBM deals have valued similar companies at a 5 percent premium to sales. Started Candle in 1976 after being inspired by a message inside a fortune cookie. Started Candle Foundation in 1982, which has a global focus on issues such as medical research, hunger and homelessness.

philip evans kamins

Net Worth: $620 million s 3.3%

Last Year: $600 million

Age: 67

Residence: Beverly Hills

Source of Wealth: Chemicals, plastics

Background: Owner and chief executive of Sun Valley-based PMC Global Inc., a diversified international company. Through numerous subsidiaries, both here and abroad, produces semiconductors, memory chips, film, plastics, chemicals, foam, pipes and bubble bath. Cosrich Group division manufactures and markets children’s bath products and play cosmetics while ASC Group Inc. specializes in electronics for aerospace and military markets. Revenues estimated at $600 million in 2003, holding steady over the past few years but down from 1990 when sales exceeded $1 billion.

guilford glazer

Net Worth: $605 million s 6.9%

Last Year: $566 million

Age: 82

Residence: Beverly Hills

Source of Wealth: Real estate

Background: Finally closed on the $442 million sale of the Del Amo Fashion Center to Mills Corp. Supporter of Jewish charities; donated $1 million to strengthen Israel’s international information and public relations efforts in 2004. A welder’s son, he built his first apartment building in 1950 for his mother, then expanded to Atlanta, Boston, Pittsburgh and West Virginia. Built Del Amo, nation’s second largest shopping mall; added hotels to the mix. Though there has been talk of his retirement, he still attends meetings at the offices of Torrance Co., his primary investment vehicle. Has claimed to carry little debt.

tom werner

Net Worth: $600 million t 14.3%

Last Year: $700 million

Age: 55

Residence: Pacific Palisades

Source of Wealth: Entertainment

Background: Has confirmed that his independent television production company, Carsey-Werner-Mandabach, is for sale. Company, which created “The Cosby Show,” “Roseanne” and “That ’70s Show,” has hired investment banks in the past to valuate the company, but this time could be the real deal, as Werner and co-founder Marcy Carsey are looking for other projects. Much of the value of the company, which has been placed at $1.2 billion, comes from the library, which includes 222 episodes of “Roseanne” and 201 episodes of “Cosby.” Helped start Oxygen cable network with Oprah Winfrey and Carsey. Also maintains a stake in the Boston Red Sox. The team has a debt ratio of 45 percent and is valued at $533 million. Was appointed by Gov. Arnold Schwarzenegger to the California Film Commission Has maintained a long-running relationship with NBC’s Katie Couric.

John tu

Net Worth: $600 million

Last Year: Not on list

Age: 63

Residence: Rolling Hills

Source of Wealth: Computer memory

Background: Founded Orange County computer memory products firm Kingston Technology Co. in 1987 with friend David Sun. Lives in Rolling Hills and commutes to the company’s Fountain Valley headquarters every day. The partners made a fortune by selling 80 percent of Kingston to Japan’s Softbank Corp. for $1.5 billion in 1996, after which Tu gained attention when he handed out $100 million in bonuses to its workers. Partners bought Kingston back for $450 million three years later. Tu, originally from China, moved to the U.S. in 1972. Married with two children, Tu is an avid Elvis fan who plays drums in his own band and dreams of playing with the Rolling Stones. In early days, made a point of foregoing contracts and instead struck deals on handshakes. Has an electrical engineering degree from Technische Hochschule Darmstadt in Germany.

marcy carsey

Net Worth: $597 million t 0.5%

Last Year: $600 million

Age: 59

Residence: Brentwood

Source of Wealth: Entertainment

Background: After more than 20 years with partner Tom Werner at television production company Carsey-Werner-Mandabach, the pair is shopping around for buyers of the business that produced “The Cosby Show,” “Roseanne,” and “That ’70s Show.” Donated $1 million to groups focused on defeating President Bush. Also gave $2.5 million leadership gift to the University of California, Santa Barbara, for the new Center for Film, Television and New Media. Worked her way up through the networks, moving from NBC tour guide to ABC senior vice president. Along with Oprah Winfrey and partner Werner, helped back launch of Oxygen cable network.

Neil Kadisha

Net Worth: $595 million s 38.4%

Last Year: $430 million

Age: 48

Residence: Beverly Hills

Source of Wealth: Telecommunications, investments

Background: Merged satellite-communications company Omninet with Qualcomm in 1988. Retired from Qualcomm board in 2002; still owns more than six million shares. Stock has rebounded in the past year, more than doubling but still significantly off from January 2000 peak. Chief executive of investment firm Omninet Capital LLC in Beverly Hills, involved in real estate, private equity and venture capital, focusing on wireless communications. Active in Jewish community, on board of Jewish Federation of Greater Los Angeles.

stewart resnick

Net Worth: $590 million t 19.2%

Last Year: $730 million

Age: 66

Residence: Beverly Hills

Source of Wealth: Mail-order merchandise

Background: Through Roll International Corp. holding company owns Franklin Mint, Teleflora (floral delivery service), Paramount Farms (pistachios and almonds) and Paramount Citrus. Franklin Mint, Roll’s largest segment, has suffered along with rest of collectibles industry. After three waves of layoffs since 1999, the company has reduced its 1,500 workforce to fewer than 50, as it refocuses on Internet and wholesale business. Has also shuttered Franklin Mint Museum in Philadelphia and its 30 retail stores. Started out as lawyer, founded Roll with wife Lynda. Avid art collector of French and Italian works from the 17th and 18th centuries. Has donated to field of Democratic presidential hopefuls, including John Kerry.

gary winnick

Net Worth: $570 million t 5%

Last Year: $600 million

Age: 55

Residence: Bel-Air

Source of Wealth: Telecommunications, investments

Background: Paid $55 million in March to help settle roughly 70 lawsuits brought by former Global Crossing employees and investors. Other lawsuits pending include a $1.7 billion case brought by J.P. Morgan Chase, accusing Winnick and 22 former officers and directors of hiding Global Crossing’s poor financial health to get loans. Long Island, N.Y., native worked with Michael Milken at Drexel Burnham Lambert in the 1980s. Founded Global Crossing in 1997, building undersea fiber-optic network valued at $60 billion during peak in 1999 (when he was ranked richest Angeleno). Sold more than $500 million worth of stock before company filed Chapter 11 in January 2002. Resigned as chairman in December 2002. Federal government did not pursue criminal charges against Winnick and other company executives. Founded and invests through Pacific Capital Group Inc. Donated $10 million to Simon Wiesenthal Center to support museum of tolerance in Israel and established the Winnick Family Clinical Research Center at Cedars Sinai.

michael eisner

Net Worth: $570 million s 9.6%

Last Year: $520 million

Age: 62

Residence: Hollywood Hills

Source of Wealth: Entertainment

Background: Walt Disney Co. chief executive survived tough year, losing post as chairman and contending with a shareholder revolt led by former board members Roy Disney and Stanley Gold. Lost valuable partnership with Pixar Animation Studios. Disney still hasn’t found a buyer for the Mighty Ducks hockey team, which had a losing season. Saw net worth jump this year as Disney profits improved. The former head of Paramount Pictures, Eisner went to Disney as chairman and chief executive, overseeing a glorious turnaround before stumbling with the $20 billion purchase of Capital Cities/ABC in 1996. Cal State Northridge recently renamed its College of Education for Eisner after a $7 million donation by foundation.

gloria joseph

Net Worth: $500 million s 8.7%

Last Year: $460 million

Age: 80

Residence: Los Angeles

Source of Wealth: Insurance

Background: Served as vice president of Mercury General Corp. with husband George Joseph from 1961 until 1985 divorce, same year Mercury went public. Received half of couple’s joint shares under California community property laws. Served on the Mercury board until last July, when she stepped down. Owns 17 percent of the company’s outstanding stock.

merv griffin

Net Worth: $500 million s 8.7%

Last Year: $460 million

Age: 78

Residence: Beverly Hills

Source of Wealth: Entertainment

Background: Sold Beverly Hilton Hotel last year for $130 million. Owns a slew of other hotel properties, including two resorts in Arizona and a castle in Great Britain. Working on a reality television show based on a “school of comedy” in Toronto. New version of kitschy “Dance Fever” said to be on hold. Radio singer in the 1940s, he became known to couch potatoes as host of “The Merv Griffin Show” in the 1960s. Parlayed that fame into a media empire with TV staples “Wheel of Fortune” and “Jeopardy”; sold business to Columbia Pictures for $250 million in 1986. Sold Paradise Island casino and gambling boats for an undisclosed amount in 1984. Donated his Arizona dude ranch to children’s charity in 2000.

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