[ [EBOOK] Cable Cowboy John Malone and the Rise of the Modern Cable Business ] by Mark Robichaux – pullanmaths.co.uk

Cable Cowboy John Malone and the Rise of the Modern Cable Business


If you don t have any interest in balance sheets income statements hostile takeovers stock swaps share buybacks or tax strategies then you probably won t like this book But if somewhere along the way you lost yourself down the abbit hole of corporate finance then you will L O V E love this book The story centers on John Malone widely egarded as one of the sharpest business minds in modern history His pace of MA averaging one deal every two weeks for over 15 years is stunning I mean these guys were slinging billion dollar deals like bowls of breakfast cereal and were slinging billion dollar deals like bowls of breakfast cereal and company s share price increased 55000% during that period by the way But to me what truly makes this book great is the obust profile of Malone that Robichaux gives us It s not just a fawning glow piece Malone is cast as a monster as much as a maven mortal as much as invincible an insecure sociopath as much as a loving family man I first A Mother and Daughter Diary of Raw Food Recipes for Beginners read about John Malone in Joel Greenblatt s legendary book You can be a stock market genius Later Iead about his again in The Outsider s by William Thorndike Few things about him stood out He was all about cash flow while Wall Street concentrated on accounting earnings Secondly he used leverage exceedingly partially to educe effective tax ate An My main complaint about the popular finance book The Outsiders Eight unconventional CEOs by Thorndike was that there wasn t enough detail about each individual person Well this book certainly checks the John Malone box Cable Cowboy was a comprehensive and thorough eview of his amazing career at TCI Financially gifted Malone was also a uthless deal maker and operator that managed to become the preeminent cable and media industry tycoonPretty much a must ead for anyone that has an interest in business I d say Also On A Personal Note He Instantly Became My Hero Once a personal note he instantly became my hero once learned that his nickname is Darth Vader on a personal note he instantly became my hero once I learned that his nickname is Darth Vader to him for being such a tough and bad ass negotiator and business man I eally enjoyed this book but have to admit the financial transactions and details within were hard to fo. An inside look at a cable titan and his industry John Malone hailed as one of the great unsung heroes of our age by some and eviled by others as a uthless obber baron is evealed as a bit of both in Cable Cowboy For than twenty five years Malone has dominated the cable television industry shaping the world of entertainment and communications first with his cable Llow John Malone s financial acumen was what I admired most about this book from creating a new metric EBITDA to his this book from creating a new metric EBITDA to his focus on creating shareholder value through tax deferrals and tracking stocks it was amazing to ead about this aspect of his life A few other threads I enjoyed were understanding where value is created in the cable industry always have alternatives with suppliers great story e Gates trying to
*be the cable *
the cable for the cable industry and cash flows versus earnings Here are the key takeaways I took from this book1 Despite its eputation as a isky play through 1997 TCI outperformed every other stock in the market A single share of TCI purchased at the low 1974 of 75 cents was worth 4184 by the end of 1997 a 5578 fold increase introduction ix2 Great summary on why the cable business model is genius page 143 How Malone developed intuition to see answers before his ivals did page 254 After tax cash earnings simply didn t count what counted was cable prodigious cash flow funding TCI s continual expansion page 45 One of the great parts of the books which explains why cash flows matter than earnings GREAT passage here 5 How the Ali Frazier fight transformed the economics of cable TV helped launch HBO page 526 When Malone s ealized the power of programming and how TCI could own both the pipe and the water flowing through it page 597 A Cable franchise was essentially a legal ight to a local monopoly operations had to answer to local government and win approval for ate increases page 628 Malone s strategy business thinking amazing process page 779 A paragraph that sums of the entire book Forget about earnings That s a priesthood of accounting profession he would preach What you e eally after is appreciating assets You want to own as much of that asset as you can then you want to finance it as efficiently as possible And above all asset as you can then you want to finance it as efficiently as possible And above all make sure that the deals you do avoid as much in taxes as is legally possible And then some page 81 literally sums of the key points of the book here 10 Malone s thought on unning Ompany TCI and later with Liberty Media Written with Malone's unprecedented cooperation the engaging narrative brings this controversial capitalist and businessman to life Cable Cowboy is at once a penetrating portrait of Malone's complex persona and a captivating history of the cable TV industry Told in a lively style with exclusive details the book shows how an una. Highly decentralized business page 8411 Malone s business philosophy explained page 10512 The creation of Liberty Media and the thoughts behind separating distributioncontent page 112 The favorable Liberty Media set up that Malone created from the spin but that few understood at the time13 Redstone sued Malone in 1993 in his opening words of his lawsuit Redstone summarized the key issues the American ConsumerCompetitors had with Malone largely his monopoly power over the entire cable industry supply chain page 13514 Thoughts on tracking stocks page 159 and page 24715 The cable industry s Uniue Position As The position as the set out the internet could not exist without the fat pipes of the cable industry page 213 16 ATT has non owners of the business control vs good business economics page 265 great section on why founders un a business SO much better This is the story of John Malone nicknamed Darth Vader by Al Gore who took Liberty Media from a middling little cable operation in Denver to become one of the most important players in the cable television industry One of the most important takeaways from this book is the importance of focusing on both value creation the tech and capturing a is the importance of focusing on both value creation the tech and capturing a trivial fraction of the value you create the business model Malone will go down in history as one of the greatest financial alchemists the world has ever known and the deals he made were byzantine exotic and downright confusing A few times I had to draw a financial UML diagram to even have the vaguest sense of what Robichaux was describing Central to these deals was the use of debt financing and the deferment of taxes to avoid any leakage of economic value The bottom line was that Malone believed that the only thing that mattered was creating value for shareholders and the best way to do that is to have a very long time horizon In short this book is an unbelievable look into what was once the most important industry in America before the internet Malone is also uite the character which makes the book humorous in a way that biographies typically are not. Ssuming copper strand started as a backwoods antenna service and became the digital nervous system of the US an evolution that gave US consumers the fastest oute to the Internet Cable Cowboy eveals the forces that propelled this pioneer to such great heights and captures the immovable conviction and uicksilver mind that have defined John Malone throughout his caree.