Snackz logo
Barbarians at the Gate

Bryan Burrough, John Helyar

596 Pages
2009

Barbarians at the Gate

The Fall of RJR Nabisco

Harper Collins

Below is just an AI summary! If you really want to learn something:

โšก Free 3min Summary

Barbarians at the Gate - Summary

"Barbarians at the Gate" by Bryan Burrough and John Helyar chronicles the largest corporate takeover in Wall Street history, focusing on KKR's buyout of RJR Nabisco in 1988. The book details the financial maneuvers, power struggles, and personalities involved in this historic deal, providing insight into the high-stakes world of corporate finance through extensive access to the main characters.

Key Ideas

1

Corporate Greed and Ambition

The book highlights the extreme levels of greed and ambition that characterized the corporate world in the 1980s. The takeover of RJR Nabisco was driven by the desire for power and wealth, with key figures like Ross Johnson and Henry Kravis exemplifying this relentless pursuit.

2

The Mechanics of a Leveraged Buyout

The book provides an in-depth look at the mechanics of a leveraged buyout (LBO), explaining how KKR used borrowed money to finance the acquisition of RJR Nabisco, leveraging the company's assets to secure loans.

3

Impact on Corporate America

The RJR Nabisco takeover marked a turning point in how business was conducted, with a shift towards more aggressive and financially driven strategies. The repercussions of this deal are still felt today, as it set a precedent for future mergers and acquisitions.

FAQ's

"Barbarians at the Gate" primarily focuses on the largest corporate takeover in Wall Street history, specifically the buyout of RJR Nabisco by the investment firm KKR. It delves into the financial maneuvers, egos, ambitions, and power struggles of the key players involved in this high-stakes event.

The book highlights several key figures, including Ross Johnson, the CEO of RJR Nabisco, and Henry Kravis, a partner at KKR. These individuals exemplify the extreme levels of greed and ambition that characterized the corporate world in the 1980s.

The takeover of RJR Nabisco marked a significant turning point in corporate America, leading to a shift towards more aggressive and financially driven business strategies. The repercussions of this deal are still felt today, as it set a precedent for future mergers and acquisitions.

๐Ÿ’ก Full 15min Summary

Ross Johnson's strategic maneuvering and charm led him from Nabisco to the CEO position at RJR Nabisco, highlighting a cultural clash between genteel tobacco and aggressive corporate politics.
0:00 / 1:43

Ross Johnson climbed the corporate ladder to become the CEO of RJR Nabisco in 1986. His journey began with his early professional life, where he displayed a knack for corporate politics. Johnson had a unique ability to charm directors and outsmart competitors. His strategic moves at Nabisco set the stage for him to assume the role of CEO after orchestrating a merger with RJ Reynolds Tobacco in 1985.

RJ Reynolds, a successful tobacco company based in Winston-Salem, North Carolina, had been thriving for over a hundred years. However, it was grappling with falling cigarette sales. To diversify into the food industry, its CEO, Tylee Wilson, decided to acquire Nabisco. Wilson appointed Johnson as his deputy, a decision he would soon regret. The two had conflicting styles, and Johnson began to undermine Wilson's authority with the board. Wilson's decision to keep Premier, a secret "smokeless" cigarette project, hidden from the board gave Johnson the ammunition he needed to turn the directors against Wilson.

Johnson began to rally board members like Sticht and Hugel, lobbying for their support to become the next CEO. He even threatened to resign, which forced Wilson to propose early retirement. However, Johnson and his allies persuaded the board that Wilson needed to step down immediately. In 1986, Wilson resigned, walking away with a hefty severance package. The board then appointed Johnson as CEO, marking the successful execution of his carefully crafted plan.

This story also highlights the cultural clash between the genteel tobacco culture at Reynolds and the aggressive style Johnson brought from Nabisco. It hints at the future conflicts between Johnson and other executives like Horrigan that would persist in the newly formed RJR Nabisco.

Enjoyed the sneak peak? Get the full summary!

Explore Books

The Five Love Languages

The Five Love Languages

Gary Chapman

312 Pages
2016
Let Us Go Then, You And I

Let Us Go Then, You And I

Louis Peddicord

296 Pages
2011
Find Your Unicorn Space

Find Your Unicorn Space

Reclaim Your Creative Life in a Too-Busy World

Eve Rodsky

353 Pages
2022
Resurrection Men

Resurrection Men

Ian Rankin

484 Pages
2005
Starling House

Starling House

A Reese Witherspoon Book Club Pick that is the perfect dark Gothic fairytale for autumn!

Alix E. Harrow

392 Pages
2023
Pete the Cat: 5-Minute Pete the Cat Stories

Pete the Cat: 5-Minute Pete the Cat Stories

Includes 12 Groovy Stories!

James Dean

0 Pages
2017
What Matters Now

What Matters Now

How to Win in a World of Relentless Change, Ferocious Competition, and Unstoppable Innovation

Gary Hamel

308 Pages
2012
Along Came a Spider

Along Came a Spider

(Alex Cross 1)

James Patterson

454 Pages
2017
Summer Love

Summer Love

Subina Bhaแนญแนญarฤฤซ

256 Pages
2015
Machine Learning For Dummies

Machine Learning For Dummies

John Paul Mueller, Luca Massaron

464 Pages
2021
A Scandal in Bohemia

A Scandal in Bohemia

Seven Sherlock Holmes Stories

Arthur Conan Doyle

88 Pages
1981
Liquid Love

Liquid Love

On the Frailty of Human Bonds

Zygmunt Bauman

178 Pages
2013
Border as Method, or, the Multiplication of Labor

Border as Method, or, the Multiplication of Labor

Sandro Mezzadra, Brett Neilson

380 Pages
2013
Loose-Leaf for Strategic Management

Loose-Leaf for Strategic Management

Frank T. Rothaermel

576 Pages
2020
Project Hail Mary

Project Hail Mary

A Novel

Andy Weir

497 Pages
2021
The Pirate Prince

The Pirate Prince

Gaelen Foley

416 Pages
2006
With Love, Echo Park

With Love, Echo Park

Laura Taylor Namey

260 Pages
2024
The Human Stain

The Human Stain

Philip Roth

405 Pages
2010
Crocodile on the Sandbank

Crocodile on the Sandbank

Miss Marple crossed with Indiana Jones!

Elizabeth Peters

289 Pages
2011
The Plot Against America

The Plot Against America

Philip Roth

52 Pages
2010
Japanese Candlestick Charting Techniques

Japanese Candlestick Charting Techniques

A Contemporary Guide to the Ancient Investment Techniques of the Far East, Second Edition

Steve Nison

321 Pages
2001
The Wretched of the Earth

The Wretched of the Earth

Frantz Fanon

328 Pages
2007
The Sugar Barons

The Sugar Barons

Matthew Parker

484 Pages
2011
Half of a Yellow Sun

Half of a Yellow Sun

Chimamanda Ngozi Adichie

560 Pages
2008
We Do Not Part

We Do Not Part

A Novel

Han Kang

0 Pages
2025
Intellectual Property Law

Intellectual Property Law

Commercial, Creative and Industrial Property

Jay Dratler, Jr., Stephen M. McJohn

1386 Pages
2023
Elantris

Elantris

Brandon Sanderson

508 Pages
2005
Blood, Sweat, and Pixels

Blood, Sweat, and Pixels

The Triumphant, Turbulent Stories Behind How Video Games Are Made

Jason Schreier

312 Pages
2017
The Pleasures of Philosophy

The Pleasures of Philosophy

A Survey of Human Life and Destiny

Will Durant

446 Pages
1967
Ali Cross

Ali Cross

James Patterson

201 Pages
2019

Let's find the best book for you!

Get book summaries directly into your inbox!

Join more than 10,000 readers in our newsletter

Snackz book
Snackz logo

The right book at the right time will change your life.

Get the books directly into your inbox!

โœ… New Release

โœ… Book Recommendation

โœ… Book Summaries

Copyright 2023-2025. All rights reserved.