Showing posts with label Comcast. Show all posts
Showing posts with label Comcast. Show all posts

Sunday, September 28, 2025

My Review of John Malone's "Born to be Wired: Lessons from a Lifetime...."

 Mogul


John Malone is a larger-than-life figure who played a leading role in bringing the cable industry into being. In telling his life story Malone gives us a history of the cable television industry from its humble beginnings to its peak in the late 20th century to its slow decline in the face of competition from streaming. He was also involved in a host of media deals starting in the 1980’s with CNN and right up to the potential of a Warner Brothers Discovery deal with Paramount Skydance.


The title of the book is derived from the Steppenwolf song “Born to be Wild.” We forget that CATV stands for Community Antenna Television. The industry began in the late 1960’s when a few hardy entrepreneurs began putting up towers in rural areas to capture the signals from over the air television. From the towers they strung wires to customers who previously were unable to watch television. Many of the founders actually strung the wires themselves. The industry exploded in the late 1970’s as satellites beamed down programming such as TBS and HBO to the cable operators. And in the 2000’s we witnessed  the full flowering high speed broadband connections into our homes.


Into this milieu stepped John Malone, a middle-class kid from Connecticut with a degree from Yale and a Ph.D. in operations research from Johns Hopkins. He started out at Bell Labs and in his 20’s he addressed the full AT&T board on how to improve its capital structure. After his suggestions were not adopted by the Bell-Heads, he transitioned to a consulting role and subsequently joined Jerold Electronics, a company that manufactures cable hardware.  After being passed over for the CEO job at Jerold’s parent company he struck a deal with Bob Magnes, who was building out his cable operation out of Denver. Malone became the CEO of Tele- Communications in 1973, and by 1996 it was the largest cable operator in country.


Although I was never a player in the industry, I was peripherally involved in the industry through a few small investments. In the 1970’s made seven times my money on Scientific Atlanta, a major supplier of cable boxes. Along the way I owned stock in Cox Communications and Malone’s Liberty Media, and I suffer for my sins by still owning shares in Comcast.

 

When I was working with Salomon Brothers in the 1990’s Bell Atlantic proposed taking over Tele-Communications. Salomon was representing Bell Atlantic in the deal. I remarked to Jack Grubman, Salomon’s star telecommunications analyst, that there is no way the cable cowboys in Denver would culturally mesh with the Bell Atlantic suits in Philadelphia. That deal did not happen, but when AT&T later bought Tele- Communications the cultural issues that I worried about came to the fore.

 

Malone presents portraits of such media moguls as Rupert Murdoch, Sumner Redstone, Ted Turner, Brian Roberts, Barry Diller, and David Zaslav. Afterall he was instrumental in the success of Turner’s CNN and funded Robert Johnson’s efforts to form BET (Black Entertainment Television) Though his Liberty Media, Malone  had control of Charter Communications, SiriusXM, Formula 1, Direct TV,  Home Shopping Network, The Discovery Channel, Match.com, international cable assets, and the Atlanta Braves. Although he has stepped back from active management, he remains a force to be reckoned with in the media world.

 

A good part of Malone’s success was due to his playing the tax code like a Stradivarius. Wherever he could he avoided the payment of taxes and the prime vehicle for that was to create letter stock in his affiliated companies. Although too complicated to go into here, letter stock enables the parent company to segregate the economics of a subsidiary to a new set of shareholders.

 

Not without good reason, Malone was vilified by the public and politicians as a monopolist who delivered poor service at high prices. Some of this was true because Tele-Communications under-invested in service and capital equipment, Hence the need to merge with a big Telco. As Malone recognizes the cable industry gold standard is Cox Communications (now Enterprises), which has the best customer service with the most advanced equipment. I was very unhappy when the company was taken private in 2004. Cox is now in the process of merging with Charter Communications to become the largest cable provider in the U.S.  

 

There is much more to Malone’s autobiography, and highly recommend this book for those interested understanding how our telecommunications cornucopia came into being.

Wednesday, November 20, 2024

MSNBC is in a World of Hurt

After lying to its viewers about inflation, the border and the mental acuity of President Biden and going gaga for Kamala Harris it now faces a collapse in viewership, and more importantly a significant change in its corporate structure.  Today MSNBC's parent Comcast announced that it will spin off most of its cable networks into a new entity. Significantly that new entity will exclude NBC and its news division which means that MSNBC will no longer have access to NBC's worldwide network of reporters.

Thus the new MSNBC will consist of commentators and news readers that won't have the imprimatur of NBC news. Thus it won't be able to cover breaking news about weather events, wars, campaign events and domestic disturbances. Simply put the network does not have the reportorial  staff, unlike its sister company CNBC which has reporters covering business verticals and an international presence.

Indeed, without NBC News, MSNBC, won't hold a candle to Fox News, CNN and Bloomberg News, all of whom are global news organizations. Thus in order to be competitive it will have to staff up at huge cost. Some of that cost will be borne by the overpaid on-the-air talent, something that is long overdue. 

For my previous commentary on MSNBC see: https://shulmaven.blogspot.com/2012/11/my-letter-to-comcast-ceo-brian-roberts.html and https://shulmaven.blogspot.com/2014/03/the-comcast-whores-of-msnbc.html

Thursday, March 20, 2014

The Comcast Whores of MSNBC

MSNBC likes to portray itself as being in the vanguard of liberal thought in America. Its slogan "lean forward" really means "lean left." However on one very important issue such "tribunes of the people" as Chris Matthews, Rachel Maddow, Lawrence O'Donnell and Ed Schultz are notably silent. That issue is, of course, Comcast's proposed merger with Time Warner Cable that would create a media behemoth with 30 million cable and broadband subscribers. From my personal point of view the proposed merger is fine and as I have blogged twice before (2/13/14 and 11/5/12) two of my family members are very happy shareholders of Comcast.

In a recent editorial (March 15, 2014) the far from left wing Economist magazine called on regulators to block the merger because  "Comcast will have extraordinary power over what content is delivered to consumers, and at what speed." The editorial further argued that the merger "would reduce competition, provide no benefit to consumers and sap the incentive to innovate."

If there ever were a "progressive cause" this is it. But the MSNBC commentators secure in their cushy jobs would rather discuss traffic jams on the George Washington Bridge. Simply put Comcast owns them in fee simple. Moreover Comcast has on its payroll Margaret Atwell Baker, a former commissioner on the Federal Communications Commission and its chief lobbyist is an influential Obama fundraiser. Indeed Comcast has contributed to to practically every Senator overseeing the proposed acquisition of Time Warner Cable. It was thus no coincidence that The Economist cover story was entitled, "The New Age of Crony Capitalism"

So next time when you tune into MSNBC remember that they are only pretending to be "leaning forward."

Thursday, February 13, 2014

Comcast, Time Warner and MSNBC

On November 12, 2012 I posted a very critical letter to Comcast CEO Brian Robert on how MSNBC was destroying the credibility of NBC News brand.  (See: http://shulmaven.blogspot.com/2012/11/my-letter-to-comcast-ceo-brian-roberts.html) Little did I realize that Brian Roberts was playing a long game. Comcast's ownership of MSNBC will effectively neuter their left-wing blowhards and their guests from criticizing the proposed mega-merger with Time Warner which will create a cable behemoth.

Had Disney been the buyer you would be hearing primal screams about undue concentration in media ownership. But now there will be silence. Instead of dealing with pressing national issues MSNBC will continue to fulminate about traffic in Fort Lee, New Jersey.  Brian Roberts will be happy and I will be happy as my wife and daughter will continue to reap the gains associated with their share ownership in Comcast.


Monday, November 5, 2012

My Letter to Comcast CEO Brian Roberts on MSNBC

I wrote this letter a month ago and have yet to receive a reply. As a long shot, maybe making it public will get a response.


Mr. Brian L. Roberts
Chairman and CEO
Comcast Corporation
One Comcast Center
Philadelphia, PA 19103-2838

 October 1, 2012

Dear Mr. Roberts:

I am writing you as a fiduciary for my wife and daughter who collectively own XXX(original has exact number of shares) shares of Comcast “A” stock. There is a cancer growing on our NBC News franchise and that cancer is MSNBC. By becoming the house organ of the American Left and the mouthpiece for President Obama’s reelection campaign MSNBC is destroying the credibility of NBC News. To be sure if MSNBC were completely separate from NBC News, it would be possible to maintain the hard earned credibility of NBC News. Unfortunately that is not the case.

 Although “Morning Joe” remains a credible outlet for NBC News personalities, it cannot be said for the rest of MSNBC’s programming. I weep when I see the formerly credible Andrea Mitchel get sucked into the partisanship of MSNBC. The same can be said about Tom Brokaw, a newscaster I have watched since he was doing local news in Los Angeles. Moreover our news super-stars, Brian Williams and David Gregory, lose all credibility when they do election coverage with the likes of Rachel Maddow, Ed Schultz and the formerly reasonable Chris Matthews.

 While I agree there is a real cable audience for a Left perspective on the news, I do not believe there is a mass audience for it. Remember NBC News is in the mass audience business and herein lies my worry. The more NBC News mingles with MSNBC it loses credibility with less partisan viewers and those viewers, in my opinion, will find their news elsewhere. Thus whatever is gained with cost-synergies between NBC and MSNBC, more will be lost on the revenue side as ratings drop.

Mr. Roberts, I don’t think I am a right wing crank. The issues I am raising speak to the credibility of the news business. Maybe it was lost a long time ago, but it will make running our democracy far more difficult. Furthermore if NBC and MSNBC continue on their current paths, the profitability of Comcast will be eroded. Speaking for my family, NBC/MSNBC’s share has declined over the past year.

 Yours truly,

David Shulman