Denali-investors-malone

Denali Investors Updated Presentation: The Malone Complex

Denali Investors updated presentation on the John Malone (Liberty) entities

Also see Denali Investors: Special Situations – John Malone Case Study and  How John Malone Creates Value Through Joint Ventures, with Kevin Byun of Denali Investors and The John Malone Complex – A Study in Financial Brilliance

Denali-investors-malone

Purpose of Presentation

  • Because we have benefited from investing alongside John Malone through numerous entities, the purpose of this presentation is part analysis, part history, part opportunity, and part tribute
  • Due to only perceived complexity, most investors are unaware of one of the greatest owner/operator/allocators of this time
  • These opportunities are hiding in plain sight, if one is simply paying attention
  • Yet I have never seen consolidated summary or analysis across the Malone entities, so I decided to do it myself

Creating Liberty Media – 1991

Lowest Paid, Best Performing CEO

  • “During the preceding 15 years, Malone had enjoyed a reputation of being one the lowest-paid, best performing CEOs in America.”
  • “For more than 15 years of running TCI, what drove Malone was a determination to create the biggest and most cash-efficient cable operator in the country… Yet, for all this, his stake was puny: a tiny fraction of 1% in 1991.”
  • “It was making Bob [Magness] very rich. And Bob wasn’t reciprocating. And that was just Bob… That’s what created Liberty… And it worked.” – Malone (Note: Magness was a father figure to Malone and there was no ill will)

Government Impetus

  • “Based on talks with his attorneys as well as his cable colleagues, Malone suspected that government regulators would try to force him to split TCI in two – a distribution company, owning all of TCI’s cable systems, and a content company, owning interests in cable channels. So Malone decided to do it for them.”
  • “In early 1991, he set up plans to form a new company, Liberty Media, and planned to stock it with more than $600 million worth of assets from TCI, roughly half the value in cable systems and the other half in programming stakes, mostly minority interests in small and large channels.”

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

Full presentation below:

The Malone Complex Presentation – 2014.11.19 VPublic

LEAVE A COMMENT


Saved Articles
X
TextTExtLInkTextTExtLInk

The Life and Career of Charlie Munger

Charlie is more than just Warren Buffett’s friend and Berkshire Hathaway’s Vice Chairman – Buffett has actually credited him with redefining how he looks at investing. Now you can learn from Charlie firsthand via this incredible ebook and over a dozen other famous investor studies by signing up below:

  • Learn from the best and forever change your investing perspective
  • One incredible tidbit of knowledge after another in the page-turning masterpiece of a book
  • Discover the secrets to Charlie’s success and how to apply it to your investing
Never Miss A Story!
Subscribe to ValueWalk Newsletter. We respect your privacy.

Congrats! Are you a smart person?

We have an exclusive targeted & limited time offer for being a sophisticated and loyal reader.

ValueWalkPremium is a website and newsletter on the latest industry news much of which is not in the public domain and obtained via our sources.

We also have 10 years of resources on how to use this information to better your investment process.

Sign up for  today and get our exclusive content for 40% off. This is our second biggest discount ever!!

Use coupon code VIP20 or click on the button below

Limited time offer only ENDS 2/29/2019 or after next 25 subscribers take advantage whichever comes first – please do not share this discount with others

 

0