American media company that acquired ABC in 1985 and generated extraordinary returns through disciplined capital allocation and operational decentralization — sold to Disney in 1996.
Capital Cities/ABC as a case study in the 'outsider CEO' model: Murphy and CFO Dan Burke ran the company on principles of radical decentralization, cost discipline, and patient capital allocation. Warren Buffett's $500M investment in Cap Cities (1985, to help finance the ABC acquisition) was one of his largest and most successful. The Disney sale ($19B in 1996) crystallized one of the great returns in media history.
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