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CNN PEOPLE IN THE NEWS

Kobe Bryant's Image Is Tarnished By Accusation; Arnold Schwarzenegger Running For California Govenor

Aired August 9, 2003 - 11:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

ANNOUNCER: PEOPLE IN THE NEWS: He became a star fresh out of high school.
KOBE BRYANT: I have decided to skip college and give my time to the NBA.

ANNOUNCER: And quickly became an NBA icon with his basketball talent and mutli-million dollar endorsements.

UNIDENTIFIED MALE: He's an immensely gifted basketball player. He is driven to be the best.

ANNOUNCER: Now, his squeaky clean image is tarnished by an accusation.

UNIDENTIFIED MALE: The defendant is charged with one count of sexual assault.

BRYANT: I'm innocent.

ANNOUNCER: From basketball court to a criminal court, the life of Kobe Bryant.

Then, the mega-action star who shocked the political world.

ARNOLD SCHWARZENEGGER: I, therefore, decided to run for governor of this great state.

ANNOUNCER: Growing up poor in a war torn Austria, he saw the ticket to fame in the weight room.

SCHWARZENEGGER: I needed to go and become this Mr. Universe in order to get in the movies.

ANNOUNCER: This staunch republican fell in love and married into Camelot.

UNIDENTIFIED MALE: He was huge, confident, and trying to make time with my sister.

ANNOUNCER: Now he may be following the political tradition of the famous in-laws.

SCHWARZENEGGER: The people of California, they want to have somebody to represent them.

(BEGIN MOVIE CLIP)

SCHWARZENEGGER: I am a machine.

(END MOVIE CLIP)

ANNOUNCER: Cyborg? Humanitarian? Businessman? And gubernatorial candidate, Arnold Schwarzenegger.

Their stories.

SCHWARZENEGGER: I love it.

ANNOUNCER: Now on PEOPLE IN THE NEWS.

PAULA ZAHN, CNN ANCHOR, PEOPLE IN THE NEWS: Hi, welcome to PEOPLE IN THE NEWS. I'm Paula Zahn.

In a matter of weeks, Kobe Bryant has gone from fighting for championships on the court to fighting for his life in court. The NBA superstar made the first appearance before a judge this week to face a felony charge of sexual assault in Colorado. It is a fall from grace made even more stunning by what we have come to expect from basketball's Mr. Clean. Here's Sharon Collins.

(BEGIN VIDEOTAPE)

SHARON COLLINS, CNN CORRESPONDENT: It was a hearing that took just minutes.

UNIDENTIFIED MALE: Case is 03-CR-00204. The people of the state of Colorado against Kobe Dean Bryant.

COLLINS: NBA superstar Kobe Bryant in a Colorado courtroom facing sexual assault charges that can put him in prison for life.

The scene stood in stark contrast to another image broadcast that day. Bryant and his wife appearing at the "Teen Choice Awards", young fans cheering for the basketball phenom that jumped from high school to super stardom.

ROLAND LAZENBY, AUTHOR, "MAD GAME...": His image was this incredibly driven, incredibly hard working, somewhat arrogant, but immensely talented young player who was determined to will his way to the top of the game.

COLLINS: An image of a family man who had avoided the spotlight off the court as much as he craved it on.

JACK MCCALLUM, SENIOR WRITER, "SPORTS ILLUSTRATED": He had a wife. He had a monogamous relationship. He had a six-month-old daughter that he doted over. He was everything the league could possibly want.

COLLINS: An image now being reassessed as Kobe Bryant stands trial.

BRYANT: I'm innocent.

LAZENBY: Kobe Bryant now has a very real flaw. At the very least, he's an adulterer. The courts may decide he's a rapist. And so that, that requires a major, major readjustment on the part of the public.

COLLINS: Basketball has always been a part of Kobe Bryant's life. He was born in Philadelphia in 1978. His father, Joe Jellybean Bryant was also a NBA player. He spent eight years in the league before the basketball career took him and his family overseas. Kobe Bryant would spend eight years growing up in Italy.

BRYANT: Me and my sisters really enjoyed it. I met a lot of new people. We were able to pick up a lot of family values, where, over here, they're totally distant. We really appreciate that.

COLLINS: While Bryant's father was playing and coaching the games, Bryant was learning it, and learning it well.

JOE BRYANT, FATHER: The thing that's propelling yourself to get up on the horse in gymnastics, I mean, he's propelled himself in dunking a basketball, like eight or nine years old. I said this kid is very creative. He's going to be something special because, you know, eight-year-old kids don't think of doing anything like that.

BRYANT: I was playing with kids who were 14 or 15. They were a lot bigger than I was. Plus, over there everybody is fundamentally sound. And they're very savvy with the basketball. I was able to pick up a lot, on the little things.

COLLINS: Bryant's favorite basketball player was Magic Johnson. He would watch the Lakers' star on videotapes sent to him from the States, by his grandparents.

LAZENBY: Kobe would spend hours playing and replaying the games, stopping the tape, studying, running things back. Looking at the game the way coaches look at it.

COLLINS: The Bryant family returned to Philadelphia shortly before Bryant began high school. The young basketball player soon became the focus of attention.

MCCALLUM: We had this kind of strange cultural background. He was in Italy. He spoke Italian. He played the piano and any time we seize upon something else, besides the typical story, which is a kid outside shooting hours, as soon as we latch on that, we have something.

COLLINS: Powerhouse basketball programs like North Carolina and Duke recruited Bryant. He was named "USA Today"'s high school player of the year. And he scored 180 on the SATs.

BRYANT: My parents basically said to me, Kobe, if don't do good on the books, you won't play basketball. That's it. That just kind of clicked. I said, hey man. They're not taking basketball away from me. TOM MCGOVERN, LOWER MARION ATHLETIC DIR.: How do you keep a 17- year-old that has a whole world at the feet, and everybody asking for autograph and following him and surrounding him. How do you keep his feet on the ground? I mean, that's quite a feat. They have done a nice job of it. He's really a neat kid.

COLLINS: However, Bryant has another option besides college. Take the then-unorthodoxed step of skipping it altogether and going directly to the NBA.

BRYANT: It was a tough decision, but it's a nice decision to have. I have fun with it. I'm sitting down and really thinking about it. What would it be like? Talk to a couple of people. See what their experiences were like, college or NBA. Just weigh my options out.

JOE BRYANT: Personally, I want him to -- that's a roller coaster for me. I would love to see him go to college, you know, as a parent, but I know that if he goes to college, he won't be in it too long.

COLLINS: In April, 1996, Bryant announced his intentions.

BRYANT: I, Kobe Bryant, have decided to take my talents to -

[LAUGHTER]

BRYANT: No. I have decided to skip college and take the talents to the NBA.

COLLINS: The spotlight on Bryant would only get brighter. He took pop star Brandy to his senior prom.

UNIDENTIFIED MALE: With the 13 pick in the 1996 NBA draft, the Charlotte Hornets select Kobe Bryant from Lower Marion High School in Pennsylvania.

COLLINS: Then in June, 1996, Bryant was drafted and quickly traded to the Los Angeles Lakers. Magic Johnson's former team.

UNIDENTIFIED MALE: He's going to wear number 8.

COLLINS: Then 17-year-old Kobe Bryant was about to put on the uniform of his idol and follow in his father's footsteps. He was an NBA player.

BRYANT: I was in the airport on the way up here and people come up to me say, hey, do you play basketball? I say, yeah. I play. What team do you play for? I'm used to saying Lower Marion High School. I'm there, like, I play for Lower Marion High. No, you know what? I'm a Los Angeles Laker.

COLLINS: When PEOPLE IN THE NEWS continues, Kobe Bryant becomes a superstar but doesn't make a lot of friends along the way.

MCCALLUM: Kobe has been a very questionable teammate.

(COMMERCIAL BREAK) ANNOUNCER: We now return to PEOPLE IN THE NEWS.

COLLINS: At the tender age of just 17 years old, Kobe Bryant had gone directly from high school senior to the NBA.

LAZENBY: Kobe arrived with this attitude, this enthusiasm, this great belief in his destiny. Visions of stardom were in his eyes.

COLLINS: Bryant became the youngest player ever to appear in a NBA game. But spent much of the first season on the bench. Watching. Learning, and eager to play.

BRYANT: This experience, you know, just going through something, trying something new, wanting to, you know, wanting to do well, trying to perfect everything. It's a learning experience. You have to go through that. You have to learn. You have to see things from various aspects and angles.

COLLINS: It was impossible to miss Bryant's brilliant potential. As a rookie, he won the NBA's slam dunk contest.

UNIDENTIFIED MALE: One more time.

UNIDENTIFIED MALE: Oh, between the legs. Kobe Bryant.

BRYANT: Growing up, you have to be a fan. Every kid I want knew wanted to be in a slam dunk contest. So, that was a dream growing up.

COLLINS: Bryant's popularity soared. The following season, the fans voted him to start in the All-Star Game, even though he wasn't a starter on his own team.

BRYANT: It's incredible. It's a dream come true my whole body is I'm numb. I don't know what I'm thinking. Thoughts are racing.

LAZENBY: His enthusiasm is obvious for the game. His ability, his electrifying dunks. Those are the same reasons people all over the globe attracted to Michael Jordan.

COLLINS: The hype surrounding the All-Star game soon focused on Bryant and a head to head match-up with Michael Air Jordon versus his 19-year-old heir apparent.

MCCALLUM: It's funny to watch Kobe on the court. He sometimes to have seems channeled Jordan. He walks like. Interacting with the referees, with the opponents, it's very Jordannesque. And Kobe has consciously done that.

COLLINS: Bryant finished with a team high 18 points. Jordan was named the game's most valuable player.

MICHAEL JORDAN: I just wanted to make sure that Kobe didn't dominate me. You know? Basically. And the hype was me against him. I knew I wasn't -- 100%. He was. He was looking. He was biting at the bits. And, you know, I was just hopeful and glad that I was able to fight him off. COLLINS: Bryant was becoming a super star. He had endorsement deals with Adidas, Sprite and Spaulding before he could legally drink, but adjusting to life in the NBA wasn't always easy for the teenager.

LAZENBY: As a young player, he would often drive over to UCLA and he would watch from his car the students there, he told me, wanting to see what their lives were like. Trying to get a sense of what it would have been like if he had gone to college. He's this young man who had chosen this very mature, professional life, and yet, socially, it wasn't there for him.

COLLINS: Bryant developed a reputation as a player that didn't go out on the town and rarely socialized.

MCCALLUM: He was living in this fish bowl of Hollywood where if you show up somewhere, if you're playing, you know, guitar with Johnny Depp on Sunset Boulevard, I mean, they're going to know it. By and large, Kobe did not.

BRYANT: What are you going to do? What will you do? We're all different people here. You know, criticizing me because I don't want to go to a bar? You know, criticize me because I don't want to go to a club? For what? What growth can I get from that?

COLLINS: Bryant also experienced some growing pains in trying to relate to teammates who were older and more seasoned.

LAZENBY: They would try to joke with him. They wanted to invite him to do the things they did. And he had all these plans he wanted to achieve. He had all this work he wanted to do. And he wanted to have a relentless pursuit of his destiny. And the players around him were like, lighten up.

MCCALLUM: Kobe is a driven basketball player. Anybody that gets to that level, no matter what anybody in the public thinks about Michael Jordan or Iverson or even Shaquille, dominating with natural talent and things like that, it's not true. Those guys are driven to perfect themselves. That was Kobe Bryant. He was consumed by basketball.

COLLINS: In 2000, 21-year-old Kobe Bryant reached the pinnacle of success. He and the Laker teammates beat the Indiana pacers and became NBA champions.

BRYANT: It's been a long time. It's been a long 12 years. Finally brought the championship back to where it belongs and that's the City of Los Angeles. We're looking forward to coming back next year and trying to do it again. Thank you for your support. We love you all. Thank you.

COLLINS: When PEOPLE IN THE NEWS continues, Bryant's tension with the teammates grows. And a night in Colorado shatters his image.

MCCALLUM: Kobe had done not only a good job, but an exceptional job seemingly of maturing under this spotlight. Now we're all going to take another look at that. (COMMERCIAL BREAK)

Welcome back to PEOPLE IN THE NEWS.

COLLINS: On the basketball court, Kobe Bryant is nothing short of spectacular.

BRYANT: It's such a joy to play the game. You know? Nothing matters on the basketball court except, you know, except the game.

LAZENBY: Kobe has the length, he has this incredible speed. He has a long reach. He has this creativity in getting to the basket. He has a creativity in terms of dunking and finishing plays and it is a package that the NBA sorely needs. He is not Magic, but he is a magician.

COLLINS: Bryant's passion for playing was matched by his obsession with improving. Following the 2000 championship season, Bryant wanted to play a bigger role on the Lakers.

BRYANT: This season was frustrating because people wanted me to stay at that level. That I played at last year. They wanted me to remain the same. I can't do that. I just can't, you know, something is burning, pushing me to improve to find out more about this game.

COLLINS: However, that drive was seen by many of the Bryant's teammates as selfishness.

MCCALLUM: There has been times when they have felt he's taken too many shots and taken over the offense too much. The offense he plays is supposed to be team oriented thing so it's taken Kobe -- he's had some rough seas on the way to figuring out how to be a great teammate.

COLLINS: Bryant didn't get along with the team's other megastar, Shaquille O'Neal. The pair had an uneasy relationship since both joined the Lakers in 1996. O'Neal, as a veteran, focused on winning a championship. Bryant, as an eager rookie, wanting to make his mark.

MCCALLUM: And Shaq was sort of direct about it. When people ask him, Kobe won't give me the ball. Kobe was a little bit more diplomatic or allusive about what the problem was.

COLLINS: Even after winning a title together, the Lakers were at times polarized. Bryant on one side; O'Neal and the rest of team on the other.

LAZENBY: The age difference, Kobe's lack of a college background, the problems with Laker offense, all of these things compounded to create a very isolationist position for Kobe.

COLLINS: Under Head Coach Bill Jackson, Bryant was slowly brought back into the fold.

LAZENBY: You're always going to have these kinds of conflicts in basketball. What's important is that players learn to live with them and to deal with them and Kobe and Shaq learned that.

COLLINS: Bryant's personal life underwent changes. Bryant met Vanessa Lane, a high school student on a video shoot and became engaged when Bryant was 21, Lane 18. The relationship caused a rift between Bryant and his family, reportedly due in part to the fact Vanessa is not African-American.

MCCALLUM: Joe denies there's any sort of problem with ethnicity. That there's a hint that maybe they were dissatisfied he married so young and he married somebody so young, but the real secret of what that dissatisfaction is really yet to come out.

COLLINS: Bryant and Lane married in 2001 and had a daughter born in January.

MCCALLUM: Perception was that when he was off the court, he went home to Vanessa. One thing he talked about kind of buoyantly when she was pregnant with their baby and he would -- he hated to talk about his personal life. His wife was really kept apart.

BRYABNT: Privacy is something that's suffering. You know, I'm a very private person. I like going out and, you know, having dinner with my wife and, you know, sometimes you just want to go out and get a breath of fresh air. And go to Disneyland and walk around, and, you know, that's suffered a lot.

COLLINS: However, Bryant's private life has been thrown completely into the open. On June 30th, Bryant traveled to Colorado where he was scheduled to undergo knee surgery. He checked into the lodge and spa at Coreliera (ph), just west of Vail, Colorado, where he met a 19-year-old hotel worker.

The woman allegedly went to his room that evening and the following day, reported an alleged sexual assault. On July 4th, Bryant, the darling of Madison Avenue and the golden boy of NBA was booked on suspicion of felony sexual assault.

MCCALLUM: The idea that a 24-year-old basketball player superstar would have sex outside of his marriage, if I'm supposed to be surprised at that, I just am not. But what's surprised almost anybody even Kobe's critics were the adding on something of a violent nature to it.

LAZENBY: I said it's not possible. I said, you might as well told Bill Bradley charged with this or something, because it just it is a complete departure from his character.

COLLINS: After two weeks of investigation, Eagle County, Colorado, District Attorney Mark Hurlbert, announced charges would be filed.

MARK HURLBERT, EAGLE CO. DISTRICT ATTORNEY: It is alleged that he on sexual penetration or intrusion and he caused submission of the victim through actual physical force.

COLLINS: Bryant quickly issued a statement admitting adultery, but denying he had assaulted the woman. Later he and wife Vanessa appeared at a news conference.

BRYANT: I'm innocent. You know? I didn't force her to do anything against her will. I'm innocent.

MCCALLUM: I saw a kid, at last, in a very unfamiliar situation. So I thought the emotion and the kind of apprehension that Kobe showed at the press conference was totally real.

COLLINS: The NBA said Bryant will be allowed to play this season while the legal matters proceed.

MCCALLUM: The NBA will tell you that it has enough great stars to weather this storm and the NBA's not going to crumble tomorrow because this happened to Kobe Bryant. However, I think it's a huge blow.

COLLINS: Bryant also has more than $100 million in endorsement deals, including a five-year, $45 million contract he received signed with NIKE.

BRYANT: What's up? What's up?

COLLINS: Thus far, none of the major companies Bryant endorses have pulled out of their deals.

DAVID CARTER, THE SPORTS BUSINESS GROUP: It is going to be an issue of what does he end up facing here? Does he end up serving jail time? Not only is his career in serious jeopardy, but he won't have corporate relationships to speak of. If he's acquitted, I think he'll recover fairly quickly.

COLLINS: What won't recover completely is Bryant's image. The young superstar that seemed too good to be true, no longer does.

(END VIDEOTAPE)

ZAHN: A preliminary hearing in the Kobe Bryant case is scheduled for October 9th.

ANNOUNCER: When PEOPLE IN THE NEWS, he's been a barbarian, a terminator, kindergarten cop. But can he be the next great politician?

UNIDENTIFIED MALE: Everything he's done comes out of a very firm political DNA in his brain.

ANNOUNCER: From the weight room to the campaign trail, a look at Arnold Schwarzenegger is next.

(COMMERCIAL BREAK)

NEWS ALERT

ZAHN: Welcome back to PEOPLE IN THE NEWS.

From "The Terminator" to the governor? In a surprise announcement, Arnold Schwarzenegger ends the suspense and flexes his way to California's unprecedented race to unseat Governor Gray Davis. Schwarzenegger, a moderate Republican is a novice of politics. But when it comes to popularity and name recognition, the bodybuilder turned actor, turned candidate is second to none.

Here's Bill Hammer.

(BEGIN VIDEOTAPE)

BILL HAMMER, CNN CORRESPONDENT: If you don't remember the face, you may remember the body. A young Mr. Universe, pumping iron in the early '70s. A physique that strained the imagination.

JOE WEIDER, CHMN., WEIDER HEALTH AND FITNESS: When it comes to size and proportion, he was the best.

HAMMER: As the gargantuan '80s action hero, "Conan The Barbarian.

JAIME LEE CURTIS, ACTRESS: He is an enormously talented man with enormous charisma.

HAMMER: And perhaps the biggest and most me memorable role, the larger than life killer robot in "The Terminator".

ARNOLD SCHWARZENEGGER (R), GOV. CANDIDATE, CA.: I'll be back.

HAMMER: "The Terminator" kept his promise.

SCHWARZENEGGER: When I go anywhere, people always talk about, they say, hey, when are you to do another "Terminator?"

HAMMER: Arnold Schwarzenegger travels forward through time to revive his role in "Terminator 3, The Rise Of Machines. "

SCHWARZENEGGER: I am a machine.

Could take. I love it.

HAMMER: There may be something else in "The Terminator's" future. Could Arnold Schwarzenegger be the next governor in the state of California?

SCHWARZENEGGER: I speak directly to the people and I know that the people of California want to have better leadership. They want to have somebody that will represent them.

UNIDENTIFIED MALE: Arnold?

GEORGE BUTLER, DIRECTOR, "PUMPING IRON": Never underestimate Arnold. People have always counted him down and out at every particular moment in his career, right from the beginning.

HAMMER: The odds were stacked against Arnold Schwarzenegger early on. His life began in Austria during a climate of uncertainty. July 30, 1947, Adolph Hitler was no longer in power and World War II had ended, but Europe was in disarray with rampant unemployment and poverty.

SCHWARZENEGGER: My mother had to literally go 20, 30 kilometers around, you know, to find food for us kids.

HAMMER: Little Arney and his big brother Minehart grew up in this house in a sleepy, farming community called Tah, nestled in the hilly southeastern region of Austria. His mother, Aurelia was a housewife. His father, Gustav was a police officer, who kept a strict household.

SCHWARZENEGGER: That there was a serious kind of punishments if you did something wrong. My mother was much more disciplined. She was waiting at home after I came home from school and she would demand to do the homework first before I was allowed out of the house.

HAMMER: Arnold's father at one time, a member of the Nazi Party was even more of a disciplinarian. He pitted son against son in everything from school to sports.

LARRY SUTTON, ASSOCIATE EDITOR, "PEOPLE" MAGAZINE: Everyone thought that Minehart was the one who was going to go on to bigger and better things. And in fact, they say that Arnold so timid, when he followed Minehart around, that to goof on him, the friends call him Cinderella, as if he were, you know, the sister that wasn't really getting all the star treatment.

HAMMER: Those insults just pushed Arnold to work harder. He became obsessed with competition.

He also discovered another passion, action movies. Mostly those featuring muscular film stars like Steve Reeves in the 1958's "Hercules Unchained."

SCHWARZENEGGER: As I looked and said, wow, this guy became a Hercules star because he was Mr. Universe. So maybe that's what I need to do. I need to go and become Mr. Universe and then win Mr. World competition and be a world champion in bodybuilding in order to get into movies.

HAMMER: He plotted his destiny, studying muscle magazines, discovering the gym and enduring grueling workout sessions.

SCHWARZENEGGER: When I started training with weights with the age of 15, my body responded very quickly. So it was very clear that that was where my potential was.

HAMMER: In 1961, the well-developed 15-year-old came in second at his first bodybuilding contest in Austria. During a short stint in the army, he entered and won more competitions. He took home the title of Junior Mr. Europe, and in 1966, runner up in the Mr. Universe contest. The 19-year-old trained even harder. In 1967, at the age of 20, Schwarzenegger became the youngest Mr. Universe in history. American body building champ Joe Weider was impressed.

WEIDER: I knew at that time he would be a great champion. He was charming. He made you laugh. And he trained hard. And he was totally dedicated.

HAMMER: Weider encouraged the 20-year-old to leave Austria and train in the United States. Schwarzenegger was elated.

SCHWARZENEGGER: I want to get into movies. I want top to be top in bodybuilding, I wanted to make a lot of money.

HAMMER: When PEOPLE IN THE NEWS returns, Schwarzenegger makes millions.

SCHWARZENEGGER: Very nice.

HAMMER: Conquers "Conan" and marries into Camelot.

TIM SHRIVER, BROTHER-IN-LAW: He was huge, confident, and trying to make time with my sister.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

UNIDENTIFIED MALE: We now return to PEOPLE IN THE NEWS

(BEGIN VIDEOTAPE)

HAMMER: By 1968, Arnold Schwarzenegger was the best bodybuilder in the world. But the 21-year-old Austrian was looking for more than just trophies.

SCHWARZENEGGER: I want to go to America and I want to be part of something really big.

HAMMER: He left Austria and muscled his way to LA's Venice Beach, bodybuilding Mecca in the '60s. He took classes, learned English and worked out. In 1969, he captured the coveted Mr. Olympia title; he still craved a bigger title and an even bigger audience.

SCHWARZENEGGER: Bodybuilding was a wonderful sport and I had a great time. But it was always a means to an end, as everything ought to be. The bodybuilding was a way of getting into the movies.

HAMMER: After a few acting classes, he landed his very, first part. Billed as "Arnold Strong," he was seen but not heard in 1969's low budget flick "Hercules In New York." His voice was dubbed when movie execs decided his Austrian accent was too thick.

SCHWARZENEGGER: I'm serious but where are zee horses.

A fine chariot, but where are the horses?

HAMMER: Schwarzenegger gained his first real notoriety in "Pumping Iron," the documentary about bodybuilders training for Mr. Olympia. George Butler directed the film.

BUTLER: The entire movie is almost like an Schwarzenegger monologue and he is wickedly funny in it. Very smart. Very canny. Very surprising.

SCHWARZENEGGER: I have no fear of fainting in the gym because I know it could happen. I threw up many times while I was working out. But it doesn't matter because it's all worth it.

HAMMER: Schwarzenegger's body, charm and wit made him a hit with American audiences. He also captured someone else's attention.

SCHWARZENEGGER: I would say that I fell in love with her very much in the beginning when I met her.

HAMMER: In 1977, 30-year-old Schwarzenegger further Americanized when he began dating the niece of president John F. Kennedy, Maria Shriver. Shriver's parents and brother are well-known philanthropists and liberals.

SCHRIVER: There was no expectation that an Austrian bodybuilder who was a Republican would ever be anything more than a weekend visitor. I think he was fascinated most by my parents, really.

BUTLER: Right from the start, long before he met Maria, it was very clear he was interested in the Kennedy's. And he really had a plan to do exactly what he's done. He wanted to get from A to Z, and Z was being a millionaire. To be somehow associated with the White House.

HAMMER: After an eight-year courtship, Schwarzenegger and Shriver married in 1986. Politics aside, he says they have much in common.

SCHWARZENEGGER: She was always a very ambitious girl and I was always ambitious, and we all are big believers in family. I wanted to have kids. She always wanted to have kids. I always wanted to have two. She always wanted five. We settled at four.

HAMMER: Schwarzenegger had become a member of America's most famous family. His next role would make him a member of Hollywood's elite.

LEAH ROZEN, FILM CRITIC, "PEOPLE" MAGAZINE: "Conan, The Barbarian," was essentially a revival of these cheesy sword and sandals sort of cartoon epics. I mean these things were cheesy but made it clear this guy could be a movie star.

HAMMER: And he continued to capitalize on his body off-screen, building on his brawn and his brain. After a business degree from the University of Wisconsin Superior in 1979, he put his education to the test.

SCHWARZENEGGER: So it was, you know, smart enough to make money off my body building to write books, best selling books. Any money that I made, I invested in real estate. I would say by the late '70s, I was already a millionaire already.

Hey, good to see you. Let's see those muscles. Wow.

HAMMER: A millionaire and a 1984 career-changing role as the indestructible alien in "The Terminator."

SCHWARZENEGGER: It was the first movie that became like a huge hit without really using the body and exploiting the body, because I had a jacket on throughout the whole movie.

HAMMER: He'd used his body again, though, in many '80s action flicks. As a war vet battling terrorists and commandos, a soldier in a dangerous mission in "Predator. "

SCHWARZENEGGER: Go!

HAMMER: And a man sentenced to a game show execution in "Running Man."

ROZEN: They were very, carefully tailored to his talents. No one gave him reams of English dialogue. You knew he couldn't do reams of dialogue. So you gave him these short, often funny lines. These sorts of cracks. And you had him kill a whole lot of people in a whole lot of exciting special effects kinds of ways.

SCHWARZENEGGER: Let off some steam better.

Beautiful. I think it's perfect.

HAMMER: Schwarzenegger used his success to help disadvantaged kids. He launched the Inner City Games and became a driving force behind the Special Olympics.

SHRIVER: It's been an enormously powerful force for putting people of mental disabilities on the map in places where they are not known as people of dignity and respect.

HAMMER: But with fame, fortune and good deeds, came scathing reviews of the personal life. When PEOPLE IN THE NEWS returns, Schwarzenegger's reputation butchered in a movie magazine.

SCHWARZENEGGER: I've gotten bad press. There are always some people out there that want to do you harm.

HAMMER: And hasta la vista, Hollywood. "Conan," the politician.

UNIDENTIFIED MALE: On this week's "Breaking Big," Maui Wowi's top smoothie, Michael Haith. Maui Wowi was whipped up 20 years ago in a makeshift wooden stand. Today, the gourmet, Hawaiian beverage company can be found in more than 200 locations thanks to President and CEO Michael Haith. He has blended the right ingredients for a successful franchising infrastructure.

JASON TANZ, "FSB" EDITOR: What's interesting about Maui Wowi is that it's a very cheap way for people to start a franchise. You can buy three franchises for $25,000. You can buy ten of them for $50,000.

UNIDENTIFIED MALE: Haith has even more tricks up his Hawaiian sleeve. TANZ: He's introducing a third tier. This is for a $100,000. You basically purchase the right to manage an unlimited number of kiosks in a geographical area. So, instead of buying the materials and manning the kiosk, you are providing support and you get a percentage of the profits of those kiosks.

(COMMERCIAL BREAK)

UNIDENTIFIED MALE: Welcome back to PEOLE IN THE NEWS.

ARNOLD SCHWARZENEGGER: Hasta la vista, baby.

HAMMER: In the early '90s, Arnold Schwarzenegger was the king of action heroes. He returned as the unstoppable alien in "Terminator 2, Judgment Day," and rocked the box office with the violent, big budget "Total Recall."

SCHWARZENEGGER: You'll blow my cover! Everybody down.

HAMMER: His labor of love, "Last Action Hero," fell flat.

SCHWARZENEGGER: This hero stuff has its limits.

HAMMER: But he rebounded later as a spy and family man in the romantic comedy, "True Lies. " Actress, Jamie Lee Curtis played his wife.

CURTIS: From the first scene, I just, I remember doing it and thinking, oh, this is just going to be good, because it just was so easy. And there was none of that actory stuff getting in the way.

HAMMER: And Schwarzenegger earned kudos off the screen. He was a thriving businessman, owned cool real estate and restaurants.

DANA CARVEY AND KEVIN NEILON, "SATURDAY NIGHT LIVE": We just want to pump you up.

SCHWARZENEGGER: Oh, you guys.

HAMMER: Hosted hit TV shows like, "Saturday Night Live. "

SCHWARZENEGGER: This is what you have to do. Like this.

HAMMER: But all the muscles in the world could not save his next movies. Comedies, "Junior" and "Jingle All The Way," fizzled.

ROZEN: The late '90s, in particular, were not that kind to Arnold. He tried to broaden his range, because it was clear he was getting a littler older. And the stunts were a little harder to do. It was clear, he was no longer the box office star he had been.

HAMMER: Box office bombs coincided with some personal problems. In 1997, the 50-year-old underwent surgery to replace a defective heart valve. He made a full recovery, but rumors circulated that his bad heart was due to steroid use in his early years.

WIEDER: He knew I didn't like it, but they all had to take it in order to compete in those days. He didn't overdo it.

HAMMER: And in 2001, Schwarzenegger was incensed when "Premiere Magazine" featured an article alleging his boorish behavior toward women, that he had fondled female costars.

SUTTON: An article came out in "Premiere" magazine that sort of brought to the forefront a lot of the things that had been whispered about Arnold in the past; basically, his infatuation with women. In -- in Europe, he's known as the octopus. He contends it's all playful. It was amazing the reaction to the article. He got basically all Hollywood to line up on his side and denied these charges.

HAMMER: Actress, Jamie Lee Curtis, was one of those Hollywood friends. She even wrote a letter to "Premiere," magazine, defending him.

CURTIS: The door to his trailer was open every single day, all day. There is nothing going on. He's in there reading Christie's catalogs. "Jamie Lee, do you think I should buy this for Maria for her birth" -- you know? I mean I -- I just didn't see it.

SCHWARZENEGGER: I've gotten bad press. You could not just expect people to talk nice about you or to just, you know, compliment you with your movies or everyone loves your movies. Everyone loves your politics. Everyone loves your life style.

UNIDENTIFIED MALE: Arnold?

HAMMER: Bad press and some bad movies have not deterred him.

UNIDENTIFIED MALE: The only marker.

UNIDENTIFIED MALE: And action!

HAMMER: But after other films flops like "Sixth Day" and "Collateral Damage," he's been seen less on movie screens, and more on the political trail.

SCHWARZENEGGER: Victory!

HAMMER: He funded and served as the lead spokesman of Proposition 49, an act that established after school programs in California. The 55-year-old has even bigger aspirations.

SCHWARZENEGGER: I feel very strongly that we have some serious problems in this state. And so this is why I'm running for governor. I will go to Sacramento and I will clean house.

BUTLER: Arnold is a natural born politician. And, everything he's done comes out of a very firm, political DNA in his brain.

HAMMER: Political pundits say he'd have a good shot.

ALLAN HOFFENBLUM, POLITICAL CONSULTANT: And the fact that Republicans here in California have not been able to feel a winning candidate for governor since 1994 leaves the field wide open. And there's some nostalgia because that the last time they had a really popular Republican governor was another actor, by the name of Ronald Reagan.

HAMMER: But unlike Reagan, Schwarzenegger labels himself liberal on social issues. He favors gun control, legalized abortion, and adoption by gay parents.

HOFFENBLUM: That helps him in the mind of the more pragmatic conservatives, because they do believe Republicans must nominate a pro-choice, more socially moderate candidate to be able to win, statewide.

SUTTON: You've got to have a very clean background. It's a murky area with Arnold, and I think some people in California are afraid of that.

SCHWARZENEGGER: It is time.

HAMMER: In "Terminator 3, Rise Of The Machines," Schwarzenegger faces his toughest foe yet, a female super android.

SCHWARZENEGGER: And she's just a very, very dangerous, very advanced terminator; whereas I'm much more like the older model of the terminators.

HAMMER: Older model, perhaps but this machine shows no sign of breaking down.

SHRIVER: In the end of the day, Arnold is impatient. And when he feels like he's gotten something, he wants to figure out what he can do next.

BUTLER: He's always managed to find the odd angle that works. And I would love to see Arnold Schwarzenegger fool everyone.

CURTIS: And I think we would be so lucky if he could run for president.

HAMMER: That would take a constitutional amendment. But for this Austrian bodybuilder turned American entrepreneur, turned American Hollywood action hero, anything is possible.

SCHWARZENEGGER: I have had the most interesting ride from the time when my childhood to now. I feel lucky, I feel thankful to all the people that helped me. And you know this is just the beginning.

(END VIDEOTAPE)

ZAHN: Arnold Schwarzenegger is far from alone in the quest for a total recall in California. Other celebrities throwing their hats into the ring includes, "Hustler's" Larry Flynt and "Different Strokes" star Gary Coleman.

That's it for this edition of PEOPLE IN THE NEWS. Coming up next week, Lisa Marie Presley, making music and moving beyond the shadows of her past. Plus, why Kevin Costner is saddling up for yet another epic western.

I'm Paula Zahn. Thanks so much for joining us.

UNIDENTIFIED MALE: For more celebrity news, Pick up a copy of "People" magazine this week.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com



Schwarzenegger Running For California Govenor>


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