Thomas Murphy, who acquired ABC in 1985 as chairman and chief executive of Capital Cities Communications, has died at 96. Capital Cities acquired the network for $3.5 billion and sold it a decade later for $19 billion.
Murphy began working at an ad agency after college, then managed a radio station and UHF TV station in Albany, New York. He moved up to chief operating officer for the small company, known as Hudson Valley Broadcasting. The station later shifted to a VHF frequency, expanding its reach.
Hudson Valley Broadcasting merged with a station in Raleigh-Durham, North Carolina, according to the New York Times, to become Capital Cities, the name reflecting Albany and Raleigh being the capitals in their states.
Murphy became chairman and CEO of Capital Cities, and the group had seven stations when it acquired ABC, along with a dozen radio stations and cable and newspaper properties. A key piece of the deal for Capital Cities were ABC’s owned stations.
Daniel Burke was president of Capital Cities, and Warren Buffett came on board as a major investor.
The Walt Disney Co. acquired ABC from Capital Cities for $19 billion in 1995. At the time, it was the second-largest corporate takeover ever, according to The New York Times.
Murphy died in Rye, New York. ■
