Kay Koplovitz on Dealmaking for USA Network

I started USA Network as an all-sports cable network in 1977. We had the first contracts with Major League Baseball, the NBA, the NHL; we had the events at Madison Square Garden. When we sold to Paramount, Time Inc., and Universal in 1981, we started adding entertainment content. They didn’t want to do sports, but I didn’t want to lose that audience. I fought really hard to separate USA into two networks. I lost that battle.

I really felt we needed more networks. By the late 1980s I thought about buying Financial News Network, since trading was becoming 24/7. We just needed a content partner. We spent well over a year negotiating with Dow Jones. By this point, Time had sold its stake in us to buy CNN, so we had just two owners. I was sitting in [Paramount CEO] Martin Davis’s conference room, about to sign the papers with Peter Kann of Dow Jones, when I got a call. It was Sid Sheinberg over at Universal Pictures. I assumed he was calling to congratulate me. He said, “I’m out. I’ve decided not to go forward with the deal.” I was stunned. When I saw how angry Martin looked, I knew it was over. I told the Dow Jones guys, “Bad news. Universal is pulling out.” They went white, picked up their papers, and left.