Keep pulling the thread on Kyle Grieve.
At Tele-Communications Inc. (TCI), CEO John Malone compounded the company's share price by more than 30% per annum over a 27-year period.
John Malone developed the metric EBITDA (earnings before interest, taxes, depreciation, and amortization) to better represent the cash flow of capital-intensive businesses like Tele-Communications Inc. (TCI) to investors.
John Malone's personal investment in the Liberty Media spinoff, which cost him approximately $42 million funded largely by a $26 million loan, grew to be worth more than $600 million within two years.
After regulators blocked a $45 billion deal with Comcast, Charter Communications acquired Time Warner Cable for approximately $78 billion, a 75% premium over Charter's original bid.
In 1985, Tele-Communications Inc. (TCI) invested $500,000 to help fund the Discovery network, an investment that eventually reached a peak value of $1 billion.
John Malone lost nearly 50% of his personal net worth due to the decline in AT&T's stock price following its acquisition of TCI.
In its early days, Netflix offered to sell itself to Blockbuster for approximately $50 million but was turned down.
After the 2008 financial crisis, Liberty Media structured a deal to lend a struggling SiriusXM $530 million at a 12% interest rate.
As part of its financing deal with SiriusXM, Liberty Media received convertible preferred stock, costing only $13,000, which was convertible into 40% of SiriusXM's common shares.
Four years after Liberty Media's investment, SiriusXM was generating $900 million in annual free cash flow, and Liberty's stake became worth between $10 billion and $15 billion.
Under John Malone's leadership, cable equipment supplier Gerald doubled its market share to approximately 80% and increased its margins more than threefold to 70% by developing proprietary two-way amplifiers.
In 1974, when John Malone joined as CEO, Tele-Communications Inc. (TCI) had $150 million in debt against only $35 million in annual revenues.