Laurence Tisch
Laurence Tisch | |
|---|---|
| Born | 5 March 1923 Brooklyn, New York, U.S. |
| Died | 15 November 2003 (aged 80) |
| Occupation(s) | Entrepreneur, investor, businessman |
| Known for | CEO of CBS (1986–1995), co-owner of Loews Corporation |
Laurence Alan Tisch (March 5, 1923 – November 15, 2003) was a prominent American entrepreneur, investor, and billionaire. He held the position of CEO at the CBS television network from 1986 until 1995. Together with his brother Bob Tisch, he co-owned the Loews Corporation.
Early life
Tisch was born in Brooklyn, New York, to Sadye (née Brenner) and Al Tisch. His heritage was Jewish, with his father's family originating from Ukraine and his mother's from Poland. His father, a former All-American basketball player at the City University of New York, operated a garment manufacturing business and managed two summer camps overseen by his wife.
Education and early career
At just 18 years old, Tisch completed his undergraduate studies at New York University, followed by earning an MBA in industrial management from the Wharton School by age 20. In 1946, he launched his first investment by acquiring a 300-room winter resort located in Lakewood, New Jersey, utilizing $125,000 provided by his parents as startup capital. Two years later, his brother Bob joined the enterprise, with Larry focusing on financial management while Bob oversaw daily operations.
Their initial hotel project flourished, prompting the brothers to expand their portfolio by purchasing around twelve hotels over the next ten years across Atlantic City and the Catskills.
Loews
Using profits generated from their hotel business, Tisch gained control of Loews Theaters in 1960, which was then among the largest cinema chains in the country. Both brothers served as co-chairmen. They recognized the undervalued real estate associated with these theaters and subsequently redeveloped many prime locations into residential apartments and hotels, yielding significant returns.
The Tisch brothers broadened Loews' scope through targeted acquisitions: in 1968, they purchased Lorillard, the fifth-largest tobacco company in the United States known for brands such as Kent, Newport, and True. By 1974, they acquired a controlling interest in CNA Financial Corporation, an insurer facing financial difficulties at the time but later achieving an A+ credit rating. The acquisition of the Bulova Watch Company also formed part of their diversification strategy.
By 1980, Tisch had developed Loews into a profitable conglomerate that included 14 hotels, 67 theaters, CNA Financial, Bulova, and Lorillard. The company’s revenues escalated from $100 million in 1970 to more than $3 billion. By 2002, Loews reported revenues exceeding $17 billion and assets valued above $70 billion.
CBS
In response to hostile takeover attempts from figures like Ted Turner and Marvin Davis in 1986, Tisch invested $750 million to acquire a 24.9% stake in CBS Inc. and joined its board to help defend against these bids. Supported by founder William S. Paley, he assumed the roles of CBS president and CEO.
During his leadership, Tisch implemented rigorous cost-cutting measures: he reduced staff in the news division by nearly one-fifth and trimmed its budget by $30 million. He also streamlined CBS by divesting non-core assets to concentrate on broadcasting—selling off the book publisher Holt, Rinehart and Winston for $500 million in 1986, liquidating the magazine division in 1987, and offloading CBS Music Group to Sony for $2 billion.
When Westinghouse Electric purchased CBS for approximately $5.4 billion in 1995, Tisch earned $2 billion from his ownership share.
Although CBS's stock price increased by about 15% annually during Tisch’s tenure, it underperformed relative to competitors. Critics pointed to his narrow focus on broadcasting and lack of diversification following asset sales. A notable setback occurred in 1993 when CBS lost NFL NFC broadcast rights to Fox after declining to match Fox’s offer—resulting in affiliate losses and initiating a rebuilding period lasting nearly a decade.
John Gutfreund, CEO of Salomon Brothers, contrasted Tisch with CBS founder Bill Paley by stating: "Bill had a vision for the industry; for Larry, it was a business."
Philanthropy
Laurence Tisch contributed generously to institutions such as the Metropolitan Museum of Art, New York University, the NYU Medical Center, and the Wildlife Conservation Society. His $4.5 million endowment led to the creation of the Tisch Children's Zoo located in Central Park.
Between 1978 and 1998, Tisch served as chairman of the board of trustees at New York University, where he directed a $1 billion fundraising campaign and facilitated significant campus advancements. Additionally, he held the position of president for the United Jewish Appeal in New York.
The Tisch School of the Arts at NYU bears the name of Laurence and his brother Bob, who financed the acquisition of a building for the institution. His charitable efforts also funded a law professorship occupied by renowned legal expert Richard Allen Epstein. Other entities named in his honor include Tisch Hall at NYU’s Stern School of Business and Tisch Hospital within the NYU Medical Center.
Harvard University recognizes his philanthropic impact through the Laurence A. Tisch professorship in history and economics, a role currently filled by economic historian Niall Ferguson.
Family
In 1948, Tisch wed Wilma "Billie" Stein; together they had four sons:
- Andrew H. Tisch
- Daniel R. Tisch – oversees the family investment vehicle Mentor Partners and participates on NYU’s board; father to David Tisch.
- James S. Tisch – father of New York City Police Commissioner Jessica Tisch.
- Thomas Jonah Tisch – partner at FLF Associates, a private investment firm based in New York City; married Helen Vivian Scovell in 1985.
All four sons are alumni of Suffield Academy in Connecticut.
Death
Laurence Tisch passed away at age 80 in 2003 due to gastroesophageal cancer. His final resting place is Westchester Hills Cemetery, located in Hastings-on-Hudson, New York.