Loews Corporation
Encyclopedia
Loews Corporation is a holding company
run by the Tisch Family whose subsidiaries are engaged in the following lines of business:
, all the major Hollywood movie studios, including Metro-Goldwyn-Mayer
(MGM), were ordered to sell off the movie theater chains they owned and operated.
New York City hotel developers Robert
and Laurence Tisch
purchased a large stake in the Loews chain from MGM in 1959; by the summer of 1960 they had gained control of the company; the brothers became co-chairmen. The Loew's theaters were aging and not suited to then-current movie-going trends which anticipated the multiplex
; however, the theaters were located on highly valuable city property. Almost immediately the Tisch brothers began closing many of these theaters, demolishing them (hastening the end of the classic movie theater palaces from the Golden Age of Hollywood) and selling the vacant lots to developers (they would continue to run the Loews theater chain until 1985).
The Tisch brothers soon diversified the Loews business, successfully venturing into a variety of areas as the 1960s and 1970s progressed; Loews acquired Lorillard, a tobacco company, in 1968; CNA Financial in 1974, and the Bulova
watch company in 1979. Through acquisitions, Loews' revenues grew from $100 million in 1970 to more than $3 billion by a decade later.
Laurence Tisch briefly owned, through Loews, a significant portion of U.S. television and radio broadcaster CBS
in the 1980s; Tisch was a controversial owner of CBS and made many unpopular cost-cutting moves. Loews involvement in CBS ended in 1995, with the sale of CBS to Westinghouse Electric Corporation
for $5.4 billion.
By 2002, the corporation had revenues of more than $17 billion and assets of more than $70 billion.
On May 10, 2006 Loews Corporation announced that it would offer 15 million shares of Carolina Group via a public offering, with the proceeds to be used for general corporate purposes. The sale's value was $740 million.
On June 4, 2007 Loews Corporation announced it would acquire a portion of the operations of Dominion Resources
for 4.03 billion dollars.
Loews Corporation was the parent company of Bulova Watches until 2007.
On December 17, 2007, Loews Corporation announced a plan to spin off its entire ownership interest in its subsidiary, Lorillard, Inc., to holders of Carolina Group stock and Loews common stock.
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
run by the Tisch Family whose subsidiaries are engaged in the following lines of business:
- property and casualty insuranceInsuranceIn law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
(CNA Financial CorporationCNA Financial CorporationCNA Financial Corporation is a financial corporation based in Chicago, Illinois, United States, and noted for its tall red headquarters building, CNA Center. Its principal subsidiary, Continental Casualty Company was founded in 1897. CNA was incorporated in 1967...
, a 90%-owned subsidiary) - the operation of hotels (Loews HotelsLoews Hotels-About Loews HotelsHotels:Loews Hotels currently owns and/or operates 18 hotels and resorts in the United States and Canada:-United States locations:*Loews Annapolis Hotel - Annapolis, Maryland*Loews Atlanta Hotel - Atlanta, Georgia...
, a wholly owned subsidiary) - the operation of offshore oil and gas drilling rigs (Diamond Offshore Drilling, Inc.Diamond Offshore DrillingDiamond Offshore Drilling, Inc. is a deepwater drilling contractor which provides drilling services to the oil and gas industry. The company's headquarters are located in Houston, Texas, but they have offices in Metairie, Louisiana, Africa, Australia, Brazil, Indonesia, Scotland, Singapore, Norway...
, a 50.4%-owned subsidiary) - the operation of an interstate natural gas transmission pipeline system (Boardwalk Pipeline Partners, an 66%-owned subsidiary)
- the exploration, production and marketing of natural gasNatural gasNatural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
, natural gas liquid (NGLs) (predominantly ethaneEthaneEthane is a chemical compound with chemical formula C2H6. It is the only two-carbon alkane that is an aliphatic hydrocarbon. At standard temperature and pressure, ethane is a colorless, odorless gas....
and propanePropanePropane is a three-carbon alkane with the molecular formula , normally a gas, but compressible to a transportable liquid. A by-product of natural gas processing and petroleum refining, it is commonly used as a fuel for engines, oxy-gas torches, barbecues, portable stoves, and residential central...
) and, to a small extent, oil (HighMount Exploration & Production LLC, a wholly owned subsidiary)
History
In the wake of the landmark 1948 U.S. Supreme Court antitrust ruling, United States v. Paramount Pictures, Inc.United States v. Paramount Pictures, Inc.
United States v. Paramount Pictures, Inc., 334 US 131 was a landmark United States Supreme Court anti-trust case that decided the fate of movie studios owning their own theatres and holding exclusivity rights on which theatres would...
, all the major Hollywood movie studios, including Metro-Goldwyn-Mayer
Metro-Goldwyn-Mayer
Metro-Goldwyn-Mayer Inc. is an American media company, involved primarily in the production and distribution of films and television programs. MGM was founded in 1924 when the entertainment entrepreneur Marcus Loew gained control of Metro Pictures, Goldwyn Pictures Corporation and Louis B. Mayer...
(MGM), were ordered to sell off the movie theater chains they owned and operated.
New York City hotel developers Robert
Preston Robert Tisch
Preston Robert "Bob" Tisch was the chairman, and, with his brother Laurence, part owner of the Loews Corporation. Tisch was born in the Bensonhurst section of Brooklyn in 1926. On August 16, 1986, he was appointed Postmaster General of the United States Postal Service, serving until February 1988...
and Laurence Tisch
Laurence Tisch
Laurence Alan "Larry" Tisch was an American businessman, Wall Street investor and self-made billionaire. He was the CEO of CBS television network from 1986 to 1995...
purchased a large stake in the Loews chain from MGM in 1959; by the summer of 1960 they had gained control of the company; the brothers became co-chairmen. The Loew's theaters were aging and not suited to then-current movie-going trends which anticipated the multiplex
Multiplex (movie theater)
A multiplex is a movie theater complex with multiple screens, typically three or more. They are usually housed in a specially designed building. Sometimes, an existing venue undergoes a renovation where the existing auditoriums are split into smaller ones, or more auditoriums are added in an...
; however, the theaters were located on highly valuable city property. Almost immediately the Tisch brothers began closing many of these theaters, demolishing them (hastening the end of the classic movie theater palaces from the Golden Age of Hollywood) and selling the vacant lots to developers (they would continue to run the Loews theater chain until 1985).
The Tisch brothers soon diversified the Loews business, successfully venturing into a variety of areas as the 1960s and 1970s progressed; Loews acquired Lorillard, a tobacco company, in 1968; CNA Financial in 1974, and the Bulova
Bulova
Bulova is a corporation making luxury watches and clocks. It has its headquarters in Woodside, Queens, New York City.Bulova was founded and incorporated as the J. Bulova Company in 1875 by Joseph Bulova , an immigrant from Bohemia...
watch company in 1979. Through acquisitions, Loews' revenues grew from $100 million in 1970 to more than $3 billion by a decade later.
Laurence Tisch briefly owned, through Loews, a significant portion of U.S. television and radio broadcaster CBS
CBS
CBS Broadcasting Inc. is a major US commercial broadcasting television network, which started as a radio network. The name is derived from the initials of the network's former name, Columbia Broadcasting System. The network is sometimes referred to as the "Eye Network" in reference to the shape of...
in the 1980s; Tisch was a controversial owner of CBS and made many unpopular cost-cutting moves. Loews involvement in CBS ended in 1995, with the sale of CBS to Westinghouse Electric Corporation
Westinghouse Electric (1886)
Westinghouse Electric was an American manufacturing company. It was founded in 1886 as Westinghouse Electric Company and later renamed Westinghouse Electric Corporation by George Westinghouse. The company purchased CBS in 1995 and became CBS Corporation in 1997...
for $5.4 billion.
By 2002, the corporation had revenues of more than $17 billion and assets of more than $70 billion.
On May 10, 2006 Loews Corporation announced that it would offer 15 million shares of Carolina Group via a public offering, with the proceeds to be used for general corporate purposes. The sale's value was $740 million.
On June 4, 2007 Loews Corporation announced it would acquire a portion of the operations of Dominion Resources
Dominion Resources
Dominion Resources Inc. , commonly referred to as Dominion, is a power and energy company headquartered in Richmond, Virginia that supplies electricity in parts of Virginia and North Carolina and supplies natural gas to parts of West Virginia, Ohio, Pennsylvania, and eastern North Carolina...
for 4.03 billion dollars.
Loews Corporation was the parent company of Bulova Watches until 2007.
On December 17, 2007, Loews Corporation announced a plan to spin off its entire ownership interest in its subsidiary, Lorillard, Inc., to holders of Carolina Group stock and Loews common stock.
Management
- Co-Chairman of the Board, Chairman of the Exec. Committee, and Member of the Office of the President: Andrew TischAndrew TischAndrew Tisch is the co-chair of Loews Corporation, the company founded by his father and uncle. Together with his brother, James S. Tisch, and his first cousin, Jonathan Tisch, Andrew oversees a holding company involved in hotels, oil, and insurance....
- Co-Chairman of the Board and Member of the Office of the President: Jonathan TischJonathan TischJonathan M. Tisch has been Chairman and CEO of Loews Hotels since 1989, as well as being Co-Chairman of the Board and Member of the Office of the President of Loews Corporation, its parent company. He is the son of Founder Robert Tisch....
- President, Chief Exec. Officer, and Member of the Office of the President: James S. TischJames S. TischJames S. Tisch has been the CEO of Loews Corporation since 1999. Tisch graduated from Cornell University and received his MBA at the Wharton School of Business at the University of Pennsylvania....
- Chief Financial Officer and Sr. VP: Peter W. Keegan
- Sr. VP: David B. Edelson
- Chief Investment Officer: Lisa W. Hess