Comcast

"On December 17, 1997, GI announced $4.5 billion in orders from nine cable operators including TCI, Time Warner, Comcast, Cox, and others. In addition to the 15 million set-top boxes, the cable operators would also receive warrants for a 16 percent stake in GI. This single order—three times GI’s $1.8 billion in revenue—would guarantee the company’s profitable future, especially since the same operators would look to GI for maintenance parts and upgrades. As part of the deal, in 1998, GI traded 10 ⁠"

"On December 17, 1997, GI announced $4.5 billion in orders from nine cable operators including TCI, Time Warner, Comcast, Cox, and others. In addition to the 15 million set-top boxes, the cable operators would also receive warrants for a 16 percent stake in GI. This single order—three times GI’s $1.8 billion in revenue—would guarantee the company’s profitable future, especially since the same operators would look to GI for maintenance parts and upgrades."

"Eventually, the ordering system was replaced, and sales grew. But we were still not up to par with the Home Shopping Network. And over in Philadelphia, a fellow by the name of Joseph Segel was doing a much more elegant job of selling merchandise on a network call QVC. Joe was a polished businessperson who had founded the Franklin Mint, which ran sophisticated ads in magazines to sell commemorative coins, medallions, figurines, and other collectibles. He, too, had seen HSN and launched QVC as the Saks Fifth Avenue to HSN’s Walmart. QVC’s hosts were smoother, and its merchandise comprised of more high-margin products. So TCI took an equity stake in QVC, along with Comcast and others. Literally dozens of companies announced new shopping networks, far too many for the market to support. And the market quickly thinned out. The Fashion Channel, in which TCI owned a stake, would go bankrupt and be folded into CVN. Many retailers saw the vision, but few could make it work in time. Still, there was opportunity for the right player."

"QVC under Joe Segel, a seasoned merchant, with backing from Comcast, had outperformed CVN on margins, operational efficiency, and product quality. So, in July 1989, after conversations with Comcast chairman Ralph Roberts, his son Brian, and vice chairman Julian Brodsky, we struck a deal to sell our Cable Value Network to QVC, even though CVN was the much bigger network. Roberts really wanted to retain effective control, and it was clear Joe Segel was his person. I knew we’d make more money as an investor, not an operator. Sometimes it helps to know what you’re good at and what you’re not."

"The large end-to-end groundbreaking deal with Microsoft never materialized, though we managed to strike smaller deals with Bill later. Bill Gates remains a friend, and I am still in awe of his intellect, energy, and relentless curiosity. Some of my favorite memories are of spending time with Bill and his team, including Craig Mundie, chief research and strategy officer, and Nathan Myhrvold, the chief technology officer—while traveling to Washington State for Cellular One board meetings. Cable stocks started to climb higher after the Microsoft investment in Comcast, and the entire market started to heat up for internet companies and online businesses. But while I chased the next big thing, I missed the cracks forming beneath our core business. Satellite had finally found its footing by the mid- 90s, peeling away our subscribers week by week. Customer service issues dragged on, and we were bleeding money on consultants and campaigns. The old guard was stepping back, and a wave of new leadership was stepping in. Somewhere along the way, we stopped moving with purpose—and started chasing too many things at once."

"I then called Larry Tisch. “Congratulations, Barry—you just made a lot of money,” he bellowed at me with his booming voice (the QVC stock I had bought for $25 million was now worth $125 million). He must have gotten their proposal over the wire a few minutes before. Now I was doubly stunned. I quickly said we could easily compete with the Comcast offer and I was sure John Malone and Liberty would back our deal instead of just selling out. Tisch interrupted me, saying, “If you think I’m going to overbid them, you’re smoking something. I’m going to the board dinner right now and I’m going to tell them we should authorize a one-point-five-billion-dollar dividend instead of doing this deal because we’re not going to get caught up in some bidding contest for a home-shopping company.”"

"My taking over QVC was announced in December 1992. I agreed to purchase $25 million in common stock, or 3 percent of the company (with options to buy another 15 percent), and to form a partnership with Liberty Media, which would hold 21 percent of the stock, and Comcast, which would control 14 percent. *The New York Times* said, “People who know Mr. Diller and are familiar with the deal said that… he plans to turn the shopping channel into an on-line entertainment and merchandising service in which the subscriber and the cable company can freely interact.”"