John Malone's Strategic Maneuvers in the Cable Industry

This chapter explores John Malone's strategic maneuvers during TCI's formative years, emphasizing his innovative use of underpriced shares and stock buybacks. It also discusses the creation of a super voting class of shares, which bolstered TCI's ownership and thwarted takeover attempts.

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In today’s episode, Kyle Grieve discusses the book Cable Cowboy: John Malone and the Rise of the Modern Cable Business. He covers why and how John Malone was such a prodigious creator of value, how he aligned himself with shareholders, how he helped build his monopoly-like business, TCI, how he dealt with competitors and regulators, why he trained Wall Street to see value differently, why Malone despised paying taxes, how Malone engineered deals to enrich himself and shareholder simultaneously, and much more!

IN THIS EPISODE YOU’LL LEARN:

00:00 - Intro

07:41 - Why John Malone chose to work for TCI at a significant discount

09:52 - How Malone kept costs down to maximize cash flow

16:24 - How John Malone used his knowledge of scale and leverage to build TCI

19:08 - How John created his accounting terms to best display TCI's abilities to create value

27:57 - How Malone used his scale advantages to secure better rates from programmers

36:34 - The monopoly-like power that TCI could yield that featured its bargaining power

38:17 - How Malone created life-changing wealth for himself from the Liberty Media spin-off

42:54 - Why John invented the 500-channel offering and how it protected the cable industry

45:51 - Malone's tactics to try and divert attention away from TCI's monopoly-like power

50:58 - How John Malone quickly improved TCI's financial statements through industry consolidation

Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.

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