Competitive Intelligence

Rosie O’Donnell in Court, Celebrity Media Branding Concept Takes Hit

Not since Martha Stewart has the American public been so deliciously bloodthirsty in their relish of a fallen celebrity trying to cash in on a once-good name, as this week when Rosie O’Donnell went to court to do battle against the evil Gruner+Jahr USA Publishing, who took creative control of O’Donnell’s magazine back from her, after she objected to a cover photograph that she thought made her look chubby, her coming-out as a lesbian and her quitting her TV talk show. Here’s an excerpt:

Each side blamed the other for the magazine's 2002 demise, and each sought nine-figure damage awards in their civil lawsuits. But the judge has said that aside from one witness's guess about Rosie's future value, "there is no evidence that the magazine would have made any money at all."

O'Donnell said outside court, "The story of this case is not who won or lost, but how many times peace was offered and war was chosen by the other side."

Rosie, a magazine reminiscent of Oprah Winfrey's successful publication, O, debuted amid much optimism two years ago.

G+J and O'Donnell, known then as the "Queen of Nice," had entered a joint venture agreement to remake the failing McCall's title in the mode of her successful television show. The magazine launched its first issue in April 2001.

In late summer 2002, as Rosie's sales declined, a bitter battle for editorial control ensued. The dispute climaxed in a fight over the cover photo for the September issue, which was to feature actresses from the television show "The Sopranos." The cover photo, showing O'Donnell standing between actresses Lorraine Bracco and Edie Falco, never ran. Although O'Donnell prevailed and a photo she chose was used, she nevertheless quit the joint venture in mid-September 2002. Rosie folded after its December 2002 issue.

G+J sued O'Donnell for $100 million, accusing her of breach of contract for walking away. She countersued for $125 million, saying G+J broke its contract with her by cutting her out of key editorial decisions.

During the trial, Larry Diamond, G+J's chief financial officer, has admitted he sent a memo recommending that the company "manage the financials" of the magazine so they could continue publishing it. O'Donnell's lawyers said this signaled G+J's plan to manipulate Rosie's revenue figures so they remained above the level that would have allowed O'Donnell to quit without liability.

When O'Donnell testified, she was forced to admit that she lied during a deposition when she denied telling a cancer survivor, Rosie executive Cindy Spengler, that liars get cancer. O'Donnell was apparently angry that the woman did not speak up for her at a meeting.

There’re a bunch of other good articles giving the rundown on the dispute, check out:

- Rosie’s Nasty Remarks Revealed

- Rosie Claims 'Coup D'etat' at Magazine

- O'Donnell recounts the rise and fall of Rosie

- Battle over Rosie Magazine's downfall gets nasty

Let’s hope she has better luck next week with "Taboo", the $10 million, Boy George-starring musical she’s producing at Broadway’s Plymouth Theater.

- Arik