Steven J. Ross Biography: The Road from Kinney to Time Warner

Steve Ross’s path to Time Warner began with a practical problem inside his father-in-law’s funeral business: limousines sat idle when they were not needed for services. Ross developed rental use for those vehicles and helped build a broader car-rental operation.

That opening led to a much larger business career. Ross moved from rentals and parking into Kinney National Service, then pushed the company into talent representation, film technology, publishing, movies, music, cable, and home video. By 1972, the service conglomerate had been reshaped as Warner Communications.

The expansion also brought major risks. Atari’s collapse hit Warner hard in the early 1980s, a federal investigation produced public allegations that did not result in charges against Ross, and the proposed combination with Time Inc. triggered a major takeover fight.

The company formed from that final combination, Time Warner, became the culmination of Ross’s effort to build a broad media enterprise spanning content, distribution, and communications.

A Quick Look at the Life of Steven J. Ross

From Brooklyn to the Funeral Business

Ross was born Steven Jay Rechnitz in Brooklyn in 1927. His exact birth date is disputed: reputable reference sources give April 5 and September 17. His father lost his home-building business during the Great Depression and changed the family surname from Rechnitz to Ross while seeking work. The family later moved from Brooklyn to Manhattan.

Ross attended Columbia Grammar School on an athletic scholarship and graduated in June 1945. He then enlisted in the U.S. Navy; his service did not include wartime combat. After leaving the Navy, he attended Paul Smith’s College in upstate New York.

His working life first took him into the garment trade. After marrying Carol Rosenthal in the 1950s, Ross entered the Rosenthal family’s Riverside funeral business. There, he encountered the unused asset that would lead to his first major business expansion.

Turning Idle Limousines Into a Growth Platform

Ross turned that unused limousine capacity into a rental operation and later helped expand the activity into a broader car-rental business.

Ross then formed an alliance with Kinney Service Corporation, a major parking-lot operator. In 1961, the businesses were combined with other service operations. Ross became president while still in his mid-30s, and the company went public soon afterward.

The progression from unused limousines to rentals, parking, and a public service conglomerate established a pattern visible elsewhere in Ross’s career: an adjacent opportunity became the basis for a larger business platform.

Kinney Leaves Services Behind for Entertainment

By 1966, the enterprise had become Kinney National Service Inc. Its acquisitions soon changed the nature of the company. Kinney bought the Ashley-Famous talent agency in 1967, Panavision and National Periodical Publications in 1968, and Warner-Seven Arts in 1969.

The Warner-Seven Arts acquisition, valued at roughly $400 million in stock in a contemporary account, gave Kinney a much larger position in entertainment. Ross shifted capital and attention toward media while the company shed much of its original funeral, parking, and other non-entertainment operations.

In 1972, the entertainment-focused company was renamed Warner Communications Inc. Under Ross, Warner expanded across filmed entertainment, recorded music, cable television, and home video. The portfolio increasingly centered on the intersection of content, distribution, and communications rather than the service businesses from which Kinney had grown.

The New York Cosmos and the Pelé Push

Ross’s interests also extended into professional soccer. He was one of ten Kinney National executives who founded the New York Cosmos in 1970, and the team was sold to Kinney the following year.

In 1974, Ross gave the green light for the effort to sign Pelé. The recruitment succeeded, and other international stars later joined the club, including Franz Beckenbauer and Giorgio Chinaglia. The National Soccer Hall of Fame recognized Ross’s role posthumously in 2003 by inducting him as a builder.

Atari Turns Rapid Growth Into a Corporate Crisis

Warner acquired Atari in the 1970s, and by the early 1980s the video-game company had become a major contributor to Warner’s revenue. That success reversed sharply in late 1982, when Atari’s business deteriorated and Warner announced a major earnings shortfall.

Warner suffered severe losses before selling Atari in 1984. During the retrenchment, the company sold or reduced a number of non-core holdings while preserving its core studio, music, and cable assets.

By 1987 and 1988, Warner had returned to strong growth. Ross resumed acquisition activity, adding Chappell & Co. in 1987 and Lorimar Telepictures in 1989. The recovery put Warner back in a position to pursue a much larger strategic combination.

The Westchester Premier Theater Investigation

Ross also faced a serious legal and reputational challenge during the early 1980s. A federal prosecutor publicly alleged that he was centrally involved in a secret-fund and bribery scheme connected with Warner’s dealings with Westchester Premier Theater. Ross denied wrongdoing.

Other Warner executives were convicted or pleaded guilty in related proceedings, but Ross was not charged. In January 1985, the U.S. attorney’s office closed its investigation after prosecutors said they had been unable to develop evidence they believed would justify charging him.

Warner Recovers and the Time Deal Takes Shape

With Warner back in acquisition mode, attention turned to a possible combination with Time Inc. Earlier discussions had stalled over governance and succession.

Talks resumed in January 1989 after a private dinner involving Ross and Time outside director Michael Dingman. Ross accepted a structure under which he would eventually step aside as co-chief executive and Nicholas J. Nicholas Jr. would succeed him.

On March 3 and 4, 1989, the companies approved and announced a stock-for-stock combination. The planned company would have equal board representation from Time and Warner, along with a staged co-chief-executive arrangement.

Paramount Communications then made an unsolicited bid for Time. Time and Warner restructured their transaction into a debt-financed acquisition structure that did not require the same Time shareholder vote. Paramount and shareholders went to court seeking to stop the deal.

The Delaware courts declined to block the transaction. During the merger fight, Ross described the strategic fit in direct terms: “There could not be a better fit in the world.” After the Delaware ruling, he framed the outcome as support for companies pursuing combinations built around long-term goals.

Time Warner Becomes the Culmination of the Strategy

Time Inc. and Warner Communications completed their combination on January 10, 1990, forming Time Warner Inc. Ross became chairman and co-chief executive of the new company.

The transaction broadened the mix of media, publishing, entertainment, distribution, and communications businesses surrounding Warner. It also left the combined company with substantial debt, which shaped management decisions after the merger.

For Ross, the combination marked the culmination of a career-long pattern of building larger platforms through expansion and combination. The scale had changed dramatically since his years in the funeral business, but the movement from one business platform to a larger one remained a recurring feature of his career.

Illness, Succession, and the Final Year

Ross was diagnosed with prostate cancer in November 1991 and underwent treatment. His illness kept him away from normal office activity for long periods, but he remained influential in Time Warner’s leadership.

In February 1992, Nicholas J. Nicholas Jr. left as co-chief executive, and Gerald M. Levin became president and co-CEO. Contemporary reporting described Ross as a decisive force behind the change.

Ross died in Los Angeles on December 20, 1992, at age 65, less than three years after the completion of the Time Warner combination.

A Legacy of Scale, Risk, and Media Convergence

Ross’s most durable corporate legacy was the creation of Time Warner from Warner Communications and Time Inc. His career repeatedly involved large strategic risks, from Kinney’s move into entertainment to Atari and the Time combination.

His record also reflected a sustained concentration on businesses where entertainment content, distribution, cable, video, publishing, and communications could reinforce one another. Not every investment or combination succeeded, but media convergence remained a visible theme across the company Ross built.

Ross also left an imprint outside the corporate structure. The National Soccer Hall of Fame honored his role with the New York Cosmos in 2003. Steven Spielberg later said Ross’s presence and manner influenced the screen performance he wanted from Liam Neeson as Oskar Schindler in Schindler’s List. Spielberg used home movies of Ross as a performance reference; Ross was not presented as a historical model for the real Schindler.

Timeline

This timeline highlights major milestones in Steven J. Ross’s life and career.

1927

Born Steven Jay Rechnitz in Brooklyn, New York. His exact birth date remains disputed.

June 1945

Graduated from Columbia Grammar School.

1945-1946 era

Served in the U.S. Navy. After his service, he attended Paul Smith’s College.

1950s

Joined the Riverside funeral business and developed rental use for idle limousines, helping build a broader car-rental operation.

1961

Kinney-related service businesses were combined. Ross became president, and the company went public soon afterward.

1966-1969

Kinney National expanded through acquisitions including Ashley-Famous, Panavision, National Periodical Publications, and Warner-Seven Arts.

1970

Ross was among the Kinney executives who founded the New York Cosmos.

1972

The entertainment-focused company became Warner Communications Inc.

1974

Ross approved the effort that led to the Cosmos signing Pelé.

Late 1982

Atari’s deterioration hit Warner’s earnings and triggered a major corporate crisis.

1984

Warner sold Atari while retrenching around its core media businesses.

January 1985

Federal prosecutors closed their investigation of Ross in the Westchester Premier Theater matter without charging him.

1987-1988

Warner returned to strong growth and resumed expansion.

March 1989

Time and Warner announced their planned stock-for-stock combination.

June-July 1989

Paramount’s challenge led to a restructured transaction, and Delaware courts allowed the Time-Warner deal to proceed.

January 10, 1990

Time Inc. and Warner Communications completed their combination, forming Time Warner Inc. Ross became chairman and co-chief executive.

November 1991

Ross was diagnosed with prostate cancer.

February 1992

Gerald M. Levin became president and co-CEO after Nicholas J. Nicholas Jr. left.

December 20, 1992

Ross died in Los Angeles at age 65.

2003

The National Soccer Hall of Fame inducted Ross posthumously as a builder.

FAQs

Question: What was Steve Ross’s real name?

Answer: Steve Ross was born Steven Jay Rechnitz. His family later changed the surname from Rechnitz to Ross.

Question: When was Steve Ross born?

Answer: Steve Ross was born in Brooklyn in 1927. His exact birth date is disputed, with April 5 and September 17 appearing in reputable reference sources.

Question: How did Steve Ross go from the funeral business to Warner Communications?

Answer: Ross began by developing rental use for idle limousines in his father-in-law’s funeral business. That expanded into car rental and an alliance with Kinney’s parking operations. Kinney then moved into entertainment through acquisitions and became Warner Communications in 1972.

Question: Was Steve Ross charged in the Westchester Premier Theater scandal?

Answer: No. A federal prosecutor publicly accused Ross of involvement, and Ross denied wrongdoing. In 1985, the U.S. attorney’s office closed its investigation after saying it lacked evidence it believed would justify charging him.

Question: What role did Steve Ross play in creating Time Warner?

Answer: Ross led Warner Communications during the negotiations with Time Inc., accepted a governance and succession compromise that helped restart stalled talks, remained committed through Paramount’s challenge, and became chairman and co-CEO when the combination was completed in 1990.

Question: Did Steve Ross inspire Oskar Schindler in Schindler’s List?

Answer: Not as a historical model. Steven Spielberg said Ross’s presence and manner helped shape the screen performance he wanted from Liam Neeson, and he showed Neeson home movies of Ross as a performance reference.

Interviews

Ross After the Delaware Merger Ruling

A Los Angeles Times interview published on July 26, 1989, captures Ross immediately after the Delaware Supreme Court cleared the Time-Warner transaction to proceed. Ross discusses the merger fight and frames the court result in terms of companies’ ability to pursue combinations built around long-term goals.

View the interview

Further Reading

• Master of the Game by Connie Bruck
• To the End of Time by Richard M. Clurman

Sources

• Los Angeles Times: Steven Ross, Chairman of Time Warner, Dies at 65, Time Warner Caps Steve Ross’ Big Comeback, Ross Celebrates Victory by Making Plans for Europe, Inquiry Into Warner Chairman Closed Out, Steven Spielberg, Seriously
• The Independent: Obituary: Steven Ross
• Scribner Encyclopedia of American Lives / Encyclopedia.com: Ross, Steven Jay
• Supreme Court of Delaware / Justia: Paramount Communications, Inc. v. Time Inc.
• TIME: A Deal Heard Round the World, Return to Sender
• AT&T Investor Relations: Other Mergers
• National Soccer Hall of Fame: Steve Ross
• The New Yorker: Deal of the Year