Thomas S. Murphy
Thomas S. Murphy
U.S. Media Executive
Thomas S. Murphy. Born in Brooklyn, New York, U.S.A., May 31, 1925. Cornell University, B.S. 1945; Harvard University, M.B.A. 1949. Married. Served in U.S. Navy. Executive positions with Kenyon and Eckhardt, 1949–51; with Lever Brothers Company, 1951–54; with Capital Cities Communications, Inc., New York City, from 1954, executive vice president 1961–64, president, 1964–72, chief executive officer, 1966–90, chair, from 1966; initiated acquisition of Triangle Broadcasting, 1971; initiated merger with ABC to form Capital Cities/ABC, 1986. Board member: The Walt Disney Company, Columbia/HCA Healthcare Corp., Doubleclick Inc., and Smith Barney’s International Advisory Board.
Thomas S. Murphy.
Courtesy of the Everett Collection
Bio
Thomas S. Murphy was chair and chief executive officer of Capital Cities/ABC until 1996, when Disney bought the company and Murphy retired. Murphy built Capital Cities/ABC into a multi-billion-dollar international media conglomerate. In addition to leading Capital Cities from its days as a small television holding company to its position as a media empire, Murphy distinguished himself as a responsible corporate citizen by emphasizing public service.
After service in the U.S. Navy, a Harvard M.B.A., and five years at Kenyon and Eckhardt and at Lever Brothers, Murphy began his broadcasting career with a little help from his father’s friends. The legendary broadcaster Lowell Thomas, Thomas’s business manager Frank Smith, and a few other investors started Hudson Valley Broadcasting. They needed a station manager and turned to their friend’s ambitious son. In 1954, at the age of 29, Murphy assumed duties as the first employee and station manager at WROW-TV in Albany, New York. This station and its sister radio station, WROW-AM, were the Hudson Valley Broadcasting Company. After nearly three years of red ink, the station saw a profit. As the company evolved into Capital Cities and eventually into Capital Cities/ABC, it consistently made money. One share of the company in 1957 cost $5.75; in 1996, that investment would be worth more than $12,000.
In 1960 chair Frank Smith moved Murphy to New York City as executive vice president of Capital Cities. In 1964 Murphy was named president. With Smith’s death in 1966, Murphy became chair and chief executive officer. Three cornerstones of Murphy’s management philosophy were fiscal responsibility, decentralized local responsibility, and social responsibility. Additionally, he always tried to hire people smarter than himself. Murphy attributed much of his success to what he learned from Smith.
For the next two decades, Murphy led Capital Cities during a time of fantastic growth. In 1985 Capital Cities became the minnow that swallowed the whale when it announced that it was merging with the highly visible American Broadcasting Company (ABC). This was the largest merger to date of media companies. Capital Cities/ABC reclaimed this record about ten years later when it merged with the Disney Company.
Murphy will be remembered not only for his business acumen and ability to expand Capital Cities but also for his firm belief in the importance of public service. In 1961 the company received national attention and a Peabody Award for its nonprofit, exclusive television coverage of Israel’s trial of the Nazi war criminal Adolf Eichmann. Murphy continued that level of dedication to public service throughout the early years of the company and into the era of Capital Cities/ABC. The company played a significant role in public service campaigns for “Stop Sexual Harassment,” PLUS Literacy, the Partnership for a Drug-Free America, and others. The company also practiced significant internal and external public service with its own Substance Abuse Assistance Program, Corporate Diversity in Management skills bank, Management Initiatives Program to expand minority representation in editorial management, Broadcast Management Training Program for women and minorities, the Advanced Management Training Program for Women, the Women’s Advisory Committee, the Capital Cities/ABC Foundation, and the Volunteer Initiatives Program, serving as a clearinghouse for volunteerism. In retirement, Murphy has pursued his public service interests as a trustee of the Inner-City Scholarship Fund, the Lymphoma Research Foundation of America, New York University, and the Madison Square Boys and Girls Club and as a member of the Board of Overseers of Harvard College. In 1998 he was elected board chair of Save the Children.