(3 of 3)
A. Davis: Absolutely. We're talking about this company and what has to be done here -- some of my views, which he needs to listen to in terms of what needs ( to be done. But those are confidences I'd rather keep to ourselves. We've discussed individuals as they pertain to the company. He's been very professional about it. I've seen him more lately since I have a merger agreement with him.
Q. TIME: Do you think Sumner understands why you've decided to endorse Barry Diller's bid?
A. Davis: I think he understands full well. Look, he's under the same court directive we're under. It's no different for him. He has to do what he has to do. Clearly Viacom never had in mind to keep upping its bid. But I haven't changed my mind about the first deal that was done. From a financial standpoint, from a long-term standpoint, it was the right deal. I'll say that to my dying day. Because you would have had a different company and a different balance sheet and with unusual strength to go forward.
Q. TIME: Do you think it's accurate when people say this deal is a throwback to 1980s swashbuckling?
A. Davis: No. That's pure nonsense. The 1980s was purely going on overextending debt and looking for never-never land. Balance sheets meant nothing in the 1980s. Today anybody who takes on a load of debt is going to work his tail off to bring it down. You can't just call up a Drexel or a Goldman or a Merrill Lynch and say, gee, I've got this wonderful idea, I need 7 billion bucks, do you think you can finance me?
Q. TIME: So this isn't a 1980s flashback?
A. Davis: No. If it was an '80s flashback, you wouldn't have a Comcast in the picture, you wouldn't have a Blockbuster in the picture, or a Nynex in the picture. These are all strategic investors, as opposed to financial players.
Q. TIME: What makes this deal so special? Is there anything unique about this that makes it different from other deals?
A. Davis: Basically it was a garden-variety transaction. That's what we started out with. It was an intelligent, common-sense merger. Nothing convoluted about it. Nothing sinister. Nothing clandestine.
Q. TIME: What happened to it? What caused it to mutate?
A. Davis: If it was a machine-tool company, you wouldn't be sitting here today.
Q. TIME: So we're talking about Hollywood and sex appeal?
A. Davis: We're talking about whatever the media created, and that's what also makes it silly.
Q. TIME: What's in the future for Martin Davis?
A. Davis: As soon as that court decision was affirmed, my plans, my life - changed. And it's all very positive. I'm leaving behind a great company. Looking to the future, I do have a lot of possibilities. I am clearly on the road to establishing something.
Q. TIME: Will it be running your own show?
A. Davis: Very definitely.