John Kluge - Metromedia and Metromedia Company

Metromedia and Metromedia Company

Kluge's major move into media was by purchasing stock in the Metropolitan Broadcasting Corporation in the mid-1950s. The Metropolitan Broadcasting Corporation was the successor of the DuMont Television Network, which was spun off from DuMont Laboratories after the television network ceased operations in 1956. Metropolitan Broadcasting consisted of two stations, WABD in New York City and WTTG in Washington, D.C., both former DuMont outlets now operating as independent stations. Kluge joined the company as its board chairman and largest stockholder in 1958, acquiring the bulk of his shares from founder Allen B. DuMont for about USD $6,000,000.

After gaining control in 1959, Kluge began the company's expansion further into broadcasting, with holdings in television and radio. In the early 1960s, Kluge bought an outdoor advertising firm, and in 1961 the company's name was changed to Metromedia to reflect the diversity of its interests.

In 1986, Kluge sold the Metromedia television stations to the 20th Century Fox film studio, which is now controlled by the News Corporation, for a reported USD $4 billion. Those stations would later form the core of what would become the Fox television network. The following year, Forbes Magazine placed Kluge at the top of its list as the richest man in America.

In retaliation for a lawsuit brought by Paul Winchell, who sought the rights to his children's television program, "Winchell-Mahoney Time", Metromedia management, under orders from Kluge, destroyed the video tapes. Winchell was later awarded nearly $18 million as compensation for Metromedia's capricious behavior.

Following the Fox disposal, Kluge's activities had been carried out through a private venture named Metromedia Company in which he was a partner with Stuart Subotnick. Metromedia's more recent activities have included Eastern European, Commonwealth of Independent States and China telecom/cable/radio ventures through Metromedia International Group and the ill-fated US telecom backbone operation Metromedia Fiber Network. In July 2008, the Metromedia Restaurant Group, part of the Metromedia Company, closed over 300 company-owned Bennigan's and Steak and Ale restaurants. Metromedia was also the original team operators of the New York/New Jersey Metrostars Major League Soccer franchise.