This Week In Wall Street History October 25th

Oct. 30 - Now part of media giant Viacom (for a cool $3 billion), the then-independent Black Entertainment Holdings blasted an urban vibe across Wall Street’s trading floors back on Oct. 30, 1991, when the firm became the first African-American-owned company listed on the New York Stock Exchange.

Reportedly based on a tweaked business proposal written by a stranger met in a shared cab ride, Black Entertainment Television (BET) was founded by visionary Robert L. Johnson in 1979 during the nascent period of cable television. The fledgling company scored an early infusion of capital from another visionary, John Malone, head of TCI, the third largest cable franchise in the country. The cash helped BET air its first broadcast — an inauspicious two hours of late night cable programming — in January 1980 on what would later become the USA Network.

BET gradually expanded its subscriber base (with a boost from technological advancements), increased the number of paying advertisers, and upped its format offerings beyond low-cost television shows to become a massive empire serving up a variety of entertainment. Other businesses, including several joint ventures plus film production and book publishing companies, expanded BET’s reach.

By the time of its initial public offering, the company’s revenues had topped $51 million with net profits of $9.3 million. BET’s float of 4.25 million shares, initially valued between $11-$13 per share, opened at $17 per share and closed at $23.50. Happily for Johnson, his 37% of Class A shares were worth more than $250 million, a lucrative payout on a $15,000 investment.

Related posts:

1. This Week In Wall Street History: October 18thOct. 18 - Cackling, “Whoever has the most when he dies, wins,” Danny DeVito’s market-driven, corporate-raider character, Lawrence...
2. This Week In Wall Street History: October 4thThe iconic robin’s egg-blue box followed the money as high-end jeweler Tiffany & Co. debuted a stunning 11,000-square-foot retail...
3. This Week In Wall Street History September 6thNew York Stock Exchange traders protectively toiled under a roof years before they moved into their current 18 Broad...
4. This Week In Wall Street History August 30thAugust 30th - Known for his folksy charm, frugality, prized annual shareholders’ letter, and immense wealth, the “Oracle...
5. This Week In Wall Street History August 16thWhether having committed an iconic prank of disgusting defiance or hilarity, instigators “George Metesky and friends” better known as...

Short URL: http://www.traderdaily.com/?p=7705