This week’s US$2.8 billion expenditure for Marcus Cable Co. is by far the grandest investment engineered yet by Microsoft cofounder-turned-billionaire Paul Allen and his Bellevue, Washington, investment team, Vulcan Ventures.
Formed in 1986 to seek investment opportunities for Allen’s vast wealth, Vulcan pursues a mission of advancing Allen’s vision of what he calls a "wired world" -- a world in which every person is connected through a PC to a universe of fabulously stimulating interactive entertainment.
It’s the sort of broad investment strategy that holdings of $14-plus billion allow, and to date it’s resulted in a portfolio that might charitably be called diverse. Company missions range from the provision of routing solutions for Internet traffic to the development of interactive entertainment for pre-teen girls. In all, Allen has funneled about $1.6 billion into more than three dozen companies, exclusive of the deal with Marcus Cable.
Here’s a look at the portfolio, including the percentage of the company purchased by Allen, if available:
April 1998: Marcus Cable
Business: Provides cable service to 1.2 million customers
Location: Dallas, TX
Early 1998: Paraform Inc.
Business: Develops 3-D modeling software
Location: San Jose, CA
November 1997: InterNAP Network Services Business: Develops Internet routing solutions
Location: Seattle, WA
September 1997: SuperCede Inc.
Business: Builds interactive Java development tools
Location: Bellevue, WA
__August 1997: __Purple Moon
Business: Develops interactive games for girls
Location: Mountain View, CA
Percent Purchased: 15.3
July 1997: Colorado Microdisplays
Business: Develops flat-panel display technology
Location: Boulder, CO
July 1997: USA Networks Inc.
Business: Retails products via electronic means such as television and the Internet (includes the Internet Shopping Network and Home Shopping Network)
Location: New York, NY
Percent Purchased: 13.2
May 1997: Liquid Audio
Business: Develops software for distribution of music over the Internet
Location: Redwood City, CA
March 1997: Transmeta
Business: Develops software engines for multimedia PCs
Location: Santa Clara, CA
__March 1997: __Visionary Design Systems
Business: Develops software tools for mechanical engineers
Location: Santa Clara, CA
January 1997: Raycer Inc.
Business: Develops 3-D graphics hardware
Location: Palo Alto, CA
December 1996: Digital Evolution
Business: Develops Internet-Intranet solutions for business
Location: Brentwood, CA
December 1996: Net Perceptions Inc.
Business: Develops software that lets Web sites customize content based on visitor preference
Location: Eden Prairie, MN
Percent Purchased: 15.9
November 1996: Certicom
Business: Develops cryptography
Location: Mississauga, Ontario, Canada
Percent Purchased: 6.4
November 1996: NetSchools Corp.
Business: Designs education technology
Location: Santa Clara, CA
Percent Purchased: 17.9
November 1996: Siliscape Inc.
Business: Develops technology for micro-displays on compact devices
Location: Palo Alto, CA
Percent Purchased: 17.3
August 1996: PersonaLogic
Business: Develops "Personal Decision Guides" used by companies offering complex services or products online
Location: San Diego, CA
Percent Purchased: 15
July 1996: CyberSource Corp.
Business: Develops e-commerce solutions
Location: San Jose, CA
Percent Purchased: 12.9
June 1996: Academic Systems
Business: Develops interactive multimedia instructional materials
Location: Mountain View, CA
June 1996: N2K Inc.
Business: Retails music online and develops original music-oriented online content
Location: New York, NY
June 1996: TeraStor Corp.
Business: Develops high-capacity storage devices
Location: San Jose, CA
Percent Purchased: 11.5
November 1995: Vision Software
Business: Develops software for client/server applications
Location: Oakland, CA
April 1995: Precision Systems
Business: Develops software and hardware solutions for call centers
Location: St. Petersburg, FL
Percent Purchased: 15.6
March 1995: DreamWorks SKG
Business: Multifaceted entertainment studio founded by Steven Spielberg, Jeffrey Katzenberg and David Geffen "to encourage and nurture creative breakthroughs in every field of entertainment."
Location: Universal City, CA
Percent Purchased: 18.3 (purchased for $500 million, Allen’s biggest single investment prior to the Marcus Cable deal)
January 1995: Storyopolis
Business: Develops film and multimedia programming for children
Location: Los Angeles, CA
December 1994: MetaCreations Inc.
Business: Develops multimedia graphics software
Location: Carpinteria, CA
Percent Purchased: 8.7
November 1994: CNET
Business: Develops and sells technology media
Location: San Francisco, CA
Percent Purchased: 20.6
September 1994: Trilobyte Inc.
Business: Develops interactive online games
Location: Medford, OR
Percent Purchased: 26.2
June 1994: United States Satellite Broadcasting Co.
Business: Broadcasts satellite TV (partnered with DirecTV)
Location: St. Paul, MN
Percent Purchased: 4.1 (The value of Allen’s original investment of $20 million mushroomed to $150 million following USSB’s IPO)
May 1994: ARI Network Services Inc.
Business: Develops e-commerce software for agribusiness, freight transport, and publishing companies
Location: Wisconsin
Percent Purchased: 14
October 1993: Metricom Inc.
Business: Builds wireless data networks
Location: Los Gatos, CA
Percent Purchased: 49
April 1993: Harbinger Corp.
Business: Develops e-commerce solutions
Location: Atlanta, GA
Percent Purchased: 8.5
Early 1992: Interval Research Corp.
Business: Researches and develops technology
Location: Palo Alto, CA
Percent Purchased: 100 (Allen started the company as a competitor to R&D heavyweights like XeroxParc.)
May 1992: Telescan Inc.
Business: Supplies online financial data
Location: Houston, TX
Percent Purchased: 12
March 1992: Starwave Corp.
Business: Designs multimedia content for Web sites and CD-ROMs
Location: Bellevue, WA
Percent Purchased: 46
1986: Egghead Software
Business: Retails software
Location: Liberty Lake, WA
Percent Purchased: 9.4
1985: Asymetrix
Business: Develops software for Web development
Location: Bellevue, WA
