Herbert J. Siegel
Herbert J. Siegel | |
|---|---|
| Born | May 7, 1928 Philadelphia, Pennsylvania, U.S. |
| Died | August 5, 2023 (aged 95) Manhattan, New York City, U.S. |
| Occupation(s) | Entrepreneur, investor |
| Years active | 1950s–2000s |
| Known for | Chairman of Chris-Craft Industries; involvement in 1989 Time Warner merger; sale of TV stations to News Corporation |
Herbert J. Siegel (May 7, 1928 – August 5, 2023) was a prominent American entrepreneur and investor who chaired Chris-Craft Industries. He was instrumental in significant transactions within the media sector, including orchestrating the 1989 Time Warner merger and facilitating the sale of television stations to News Corporation in 2000.
Early life
Siegel was born in Philadelphia to Romanian Jewish immigrants: his father, Jacob Siegel, was engaged in overcoat manufacturing, while his mother, Frieda (née Stern), was a musician and homemaker. He completed his secondary education at Blair Academy and graduated with a bachelor's degree in journalism from Lehigh University in 1950.
Career
During his college years, Siegel endeavored to acquire a 20% ownership interest in the Philadelphia Eagles for $60,000, utilizing funds from a family trust. After this unsuccessful attempt, he invested in a television program packaging business partly owned by his father-in-law, Isaac D. Levy, who co-founded CBS.
Early business ventures
Using $100,000 sourced from a family trust, Siegel purchased shares in Official Films, a company specializing in television program packaging. He also acquired several manufacturing enterprises—including his father's overcoat company, a brewery based in Pittsburgh, a car wax producer, and a jukebox manufacturer—collectively generating profits totaling $2 million.
In 1961, Siegel established Baldwin-Montrose by merging Old Crown Brewing Corporation, Montrose Chemical Co., and Baldwin Rubber Co. The following year he acquired General Artists Corporation, an agency representing entertainers such as Pat Boone, Perry Como, and Jackie Gleason.
Paramount Pictures investment
In 1965, Siegel collaborated with Broadway producer Ernest H. Martin to purchase a 9% ownership stake in Paramount Pictures. This investment earned them seats on the board but also led to disputes with other directors. Paramount subsequently initiated an antitrust suit against Baldwin-Montrose due to conflicts of interest linked to General Artists Corporation. Siegel then divested both the talent agency and his Paramount shares to Gulf and Western Industries, securing a profit of $2.6 million.
Chris-Craft Industries
Siegel gained control of Chris-Craft Industries in 1968 and assumed the role of chairman at just 28 years old—the youngest individual on the American Stock Exchange at that time. He shifted Chris-Craft’s focus from boat manufacturing toward media ventures, culminating in the sale of its boat division in 1981.
Beginning in 1969, Chris-Craft engaged in an extended legal dispute lasting eight years to acquire Piper Aircraft Corporation. Although initially awarded $35.8 million by a federal appellate court, the U.S. Supreme Court ultimately ruled against them. Siegel later sold his stake in Piper for a modest gain.
Media investments
By 1980, Siegel had secured a 20% ownership position in 20th Century Fox, becoming its largest shareholder before selling his interest to Denver oilman Marvin Davis for close to $50 million.
During the mid-1980s, Siegel played a crucial role in assisting Warner Communications to repel Rupert Murdoch’s takeover attempt by structuring a deal where Chris-Craft sold 42.5% of its BHC television unit in exchange for 19% of Warner’s voting shares. This arrangement imposed regulatory obstacles for Murdoch due to restrictions on foreign ownership of U.S. broadcast licenses.
Time Warner merger and subsequent transactions
Siegel's rapport with Warner Communications chairman Steve Ross deteriorated due to conflicts over corporate expenditures. Nevertheless, Chris-Craft’s investment in Warner proved highly profitable during the 1989 merger with Time Inc., resulting in approximately $1 billion in returns for Chris-Craft.
Throughout the 1990s, Siegel concentrated on growing his television holdings. In 1995, Chris-Craft collaborated with Viacom to establish the United Paramount Network (UPN). Although Chris-Craft incurred losses exceeding $800 million by 2000, it ultimately sold its UPN interest to Viacom.
Siegel’s last significant deal occurred in 2000 when he divested Chris-Craft’s portfolio of 10 television stations—covering major markets such as New York City, Los Angeles, and San Francisco—to Rupert Murdoch’s News Corporation for $5.3 billion.
Business approach
Siegel operated chiefly as an asset manager rather than engaging directly in daily operations, managing his enterprises by monitoring stock quotations on his Quotron screen while relying on legal teams to handle hostile acquisition attempts. Humorist Art Buchwald once remarked that Siegel deserved an Academy Award for generating the highest earnings in Hollywood without producing a single film.
Personal life
Siegel wed Ann Levy in 1950; following her passing in 2005, he married Jeanne Sorenson in 2007. His first wedding featured a performance by Frank Sinatra, while Tony Bennett performed at his second. From his first marriage, he had two sons, John and William, both of whom later assumed executive positions within Chris-Craft and its subsidiaries.
He was deeply involved in Jewish charitable activities, particularly supporting the UJA-Federation of New York.
Siegel passed away on August 5, 2023, at his Manhattan residence due to heart failure at the age of 95.