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Shark Tank investor Mark Cuban shared how Broadcast.com began as AudioNet, founded by Chris Jaeb, during the December 17, 2024, episode of The Jules Terpak Podcast. Co-founder Todd Wagner had suggested streaming Indiana University basketball games online.
Cuban was initially interested in joining as an advisor but soon became deeply involved in operations. Recalling the moment in his conversation, he said:
"My whole mission was not to work but it was just too much once it started really happening. I remember having all the employees together out front of the building saying this is the way this is going to work. Either this is going to really have an impact on cable and television and it's worth $5 billion or more or we're going to be out of business within a year."
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The Shark Tank investor’s prediction materialized when Yahoo acquired Broadcast.com for $5.7 billion in 1999, marking one of the largest deals of the dot-com era.
Shark Tank investor Mark Cuban remembered his Broadcast.com gamble
The foundation was laid at a California Pizza Kitchen in 1994 when Todd Wagner shared his thoughts about "this new thing called the internet" with his friend Mark Cuban. The Shark Tank investor immediately saw its potential and offered to serve as an advisor.
The technical infrastructure started small. The team connected with local radio stations using basic equipment. As per Benzinga, they utilized an eight-hour VCR to record and digitize content for streaming. Over time, the company developed expertise in network connections and custom software solutions. As per Mark Cuban's official website, after seven years of continuous operation, they expanded to 80 employees.
The company maintained profitability throughout its growth phase, achieving $36 million in annualized sales. Their streaming services expanded beyond sports to include corporate events, demonstrating the technology's broad applications. Radio stations also began partnering with them to extend their reach through online broadcasting.
As per CNBC, the company developed methods to digitize various forms of audio content. In 1998, AudioNet rebranded as Broadcast.com. The company built systems for converting satellite audio feeds into digital streams. Their services expanded from sports broadcasts to music events and radio talk shows.
After securing stable audio broadcasting, the company moved into video streaming. Corporate clients started using their platform for company-wide communications, and major businesses chose Broadcast.com to stream their events and meetings.
Broadcast.com went public in July 1998. The stock price rose from $18 to $62.75 on the first trading day. This performance set records for IPO stock value increases. Multiple companies showed interest in acquiring Broadcast.com during this period.
In 1999, Yahoo purchased Broadcast.com for $5.7 billion in stock. After the sale, Cuban protected his gains through a strategic stock collar, preserving his wealth when internet stocks declined. Yahoo discontinued the service after several years. However, Broadcast.com's innovations helped establish internet streaming as a viable media platform.
Mark Cuban's path to Broadcast.com
Mark Cuban began his business journey in Pittsburgh, selling baseball cards and garbage bags door-to-door. After graduating from Indiana University, he moved to Dallas with just enough money to sleep on the floor of an apartment shared with five roommates.
The Shark Tank investor’s first tech success came through MicroSolutions, a systems integration company he sold to CompuServe for $6 million in 1990. He invested this money in public and private companies, generating returns of 80 percent annually.
Cuban’s expertise in networking technology and computer systems proved invaluable when Wagner approached him with the streaming idea. Around the same time, he also built a hedge fund, which he sold within 12 months after receiving an attractive offer.
Between MicroSolutions and Broadcast.com, Cuban briefly moved to Los Angeles to try acting, appearing in commercials and B-movies. However, he eventually returned to Dallas, where the Broadcast.com story began. At present, Mark Cuban is serving his final season on Shark Tank in season 16.
Fans can watch Shark Tank on the ABC network.
