Kluge

"For example, he cashed in his cellular telephone chips in 1989, de¬ spite perceiving further upside in the business. “Sometimes I might not maximize an investment,” he explained. “But I don’t deal in 100 percent. I deal in 80 percent to 85 percent.”24 (For the record, Kluge did take back some stock in the sale, in order to keep a stake in the cellular business.)"

"Under the terms of his LBO loans, Kluge was required to break up Metromedia and sell off the pieces to liquidate the debt in short order. It quickly became apparent, however, that it would not be feasible to peddle the assets quickly at premium prices. The problem was partly that poten¬ tial acquirers were constrained by Federal Communications Commission (FCC) limits on the number of stations they could own. Faced with pos¬ sible default on his loans, Kluge turned to the investment bank Drexel Burnham Lambert for a new financing package that granted him addi¬ tional time to complete the asset sales."

"Based on experiences such as these, Kluge makes no bones about the benefits of a lucky break: “The greatest factor in my life—and I know entrepreneurial people don’t want to express it, they think it diminishes them—but luck plays a large part.”20 He recalls that it was only through a chance encounter with an acquaintance that he learned of the opportu¬ nity to acquire the remnants of the old Du Mont television network in 1959. That transaction launched the development of Metromedia into America’s largest group of independent (non-network-affiliated) televi¬ sion and radio stations."

"Kluge has said, “I think the ability to gauge risks is crucial. I never ordinarily take on things that I can’t see some end to, where you pile risks on risks.”25"

"So I went way downtown to the historic New York Post Building, where Rupert worked in Dolly Schiff’s original mammoth office, which had been designed to intimidate the men around her. In a taxi on the way back uptown to Kluge’s apartment, Murdoch let out a gleeful “What a great adventure! We’re betting the company!” and slapped the seat for emphasis. Honestly, what sheer fun it was to be with him and his master gambler’s enthusiasm."

"Milken was raving about the historic fundraising for Kluge he’d just completed to take his company private. He announced that now Kluge ought to consider selling the stations that made up the bulk of their company’s assets. He couldn’t have known Murdoch would be there, or that I’d be in my office at the moment they wandered by. Some celestial force seemed to be driving things as Kluge rhapsodized about how reluctant he’d be to ever sell the stations he’d been building up for twenty years—mesmerizing us except for that seller’s gleam in his little Germanic nugget eyes."