Mark Cuban is a billionaire, self-made guy, made his money in the tech industry, and now owns the Dallas Mavericks. He s outspoken on virtually all issues, and you ll hear some of that today. It got tense at times, but I think it was fair.
00:00:00.440Welcome to The Megyn Kelly Show, your home for open, honest, and provocative conversations.
00:00:11.780Hey everybody, it's Megyn Kelly and welcome to The Megyn Kelly Show.
00:00:15.100Today, Mark Cuban. He's a billionaire, self-made guy, made his money in the tech industry, and now owns the Dallas Mavericks.
00:00:23.740He's outspoken on virtually all issues, and you'll hear some of that today.
00:00:28.700It got tense at times. It was a tough interview, but I think it was fair, and I give him a lot of credit for engaging,
00:00:35.340because most guys in his position, certainly in the NBA, would never have deigned to take the time.
00:00:41.020So my hat is off to him. Keep that in mind as you hear how this went.
00:00:45.620But first, let me tell you about Legacy Box.
00:00:48.260Do you have a bunch of old pictures sitting around your house, or old VHS tapes, like me, if you were born back in the 1970s or 80s?
00:00:55.980And you want to look at that stuff. There's a reason you kept it, but you can't, right?
00:01:00.380Because no one's got a VHS player anymore, and no one looks at photo albums anymore.
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00:01:17.240You get transported back to your great childhood memories, or maybe even your wedding.
00:01:22.080But when was the last time you actually watched yours, right?
00:01:25.120I loved being able to send in my old family stuff.
00:01:28.160I took my husband's slides from his family trips, and getting them back in digital form makes it possible that you'll actually look at them.
00:01:35.940And my kids could look at them, and it's super easy from start to finish.
00:01:39.100You just pack up the stuff, you send it, their team will digitize it by hand, and then you enjoy.
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00:02:05.840Go to LegacyBox.com slash MK to get an incredible 40% off your first order.
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00:02:40.180You know, I started off as that kid in school growing up in Scott Township initially that just had every little side hustle that you ever could imagine from selling baseball cards to my friends to selling garbage bags to hustling candy to buying and selling stamps at collector shows.
00:03:01.900So you were the kid who was mowing everybody's lawn and delivering the newspapers and always came home from the fair with change in your pocket.
00:03:16.760My Nana used to give my brother, my sister, and me five bucks each to go down to the little carnival down the road because we would spend August with her in the summers just north of New York City.
00:03:27.020And she used to say, Megan would come home with just the $5 gone, wouldn't want any more.
00:03:33.420Your sister would come back asking for change after two minutes and your brother would come home with change in his pockets.
00:03:38.380You know, like my so my sister needed more money.
00:03:40.600My brother always had change and I wound up breaking even.
00:03:43.960And honestly, that's how we wound up to this day.
00:03:46.220You know, that's how you learn, right?
00:03:47.580That's where you develop all your initial habits.
00:03:50.140You know, I try to tell my kids how you do anything is how you do everything, you know, and it's really important to get good habits that can lead to success as you get older.
00:04:39.100And what I would do is at these stamp shows, I would go to from one stamp collector's booth to another where they would have a dealer who would be selling these different stamps.
00:04:48.480And I would look for the inefficiencies.
00:04:50.220So how one stamp dealer would gauge a stamp or rate a stamp would be different than another one would.
00:04:55.980So I'd buy one that I thought was undervalued and go to the next booth and sell it to somebody who I thought would value it higher.
00:05:02.120And my dad was like, I have no clue what I just saw, but you made money.
00:05:08.220And so I think I realized then that, um, I was going to have to make this on my own and I was going to have to figure it out on my own and that I had the ability to do it.
00:05:15.920You were kind of, you were a little nerd who went on to become King nerd.
00:05:23.680Well, it's funny because when I see somebody like you, who's got as much success in their back pocket as you do, I always think, oh God, they probably went to Harvard or Yale or Stanford.
00:05:32.180You know, like none of us can get into those schools without lifetime family connections and so on.
00:05:36.280And then it turns out you went to Indiana, which I, I love that.
00:05:40.500So, you know, for all the people who are feeling bad about themselves right now, because they, they didn't go to these top tier schools or the parents who are worried their kids aren't going to get into them.
00:05:48.880What do they need to know about going to a school like Indiana?
00:05:52.320I mean, look, it's, you know, I went to IU, um, which is, ends up being one of the best decisions I've ever made because I saw a list of the top 10 business schools and I picked out the cheapest one.
00:06:00.740And I'd never been to the campus and that's how I picked Indiana. Um, and in terms of what people need to know, it's, it's less the school that you go to and more of the effort that you make.
00:06:11.160To me, I learned, I picked up so much knowledge about business because I was really geared towards taking business classes and challenging myself.
00:06:18.920So I would say, you know, don't worry about the school you go to, make it one that you can afford.
00:06:23.480You don't want to saddle yourself with a ton of debt these days.
00:06:25.720And two, when you get there, you know, you don't have to know exactly what you're going to be when you grow up, try to challenge yourself and take as many different types of classes because, you know, I ended up being a tech guy and I took one technology class in college and, you know, I didn't really come to understand that I had a good aptitude for tech till after college.
00:06:44.660But what I really did pick up is all the language of business, accounting and marketing and finance and sales.
00:06:50.600And I think even more importantly, Megan, I learned how to learn.
00:06:53.240You know, the only constant is change.
00:06:55.640And so I think Indiana really gave me a toolkit to say, you know, new things are always going to be coming at me.
00:07:01.640And I learned how to learn new things.
00:07:04.120And I learned that, you know, putting an effort in to read and absorb information however I could really gave me a competitive advantage.
00:07:12.440And those are the skills I think you should look for.
00:07:14.540And none of that really applies to which school you select.
00:07:19.000So in a nutshell, what is the business?
00:07:21.920What does the business do that you sold for all that money?
00:07:25.720So the month that so I first let me take a step back.
00:07:29.020My first job out of college when I got down to it, well, actually, my first job in Dallas when I came down here, I got a job as a bartender at night.
00:07:36.680I was living six guys in a three bedroom apartment and then got a job during the day selling software.
00:07:41.400And that's really what got me into computers and technology.
00:07:43.980And so I was there for like nine months before I got fired.
00:07:48.420And then I started a company called Micro Solutions where I just said, you know what?
00:07:52.640Nobody really knows all this new computer stuff.
00:07:55.020If I teach myself, then I'm going to have an edge.
00:07:57.880And I went and found a customer who would put the money up front for a software package they wanted to buy.
00:08:03.240Told them if it didn't work, I would walk their dog, you know, clean their floors, you know, whatever it took to make them happy.
00:08:08.900And then built that up to a company, built that up to about 30 million in sales and 80 employees.
00:08:15.800And we sold it to H&R Block when I was about 30.
00:08:18.980And then I took a couple of years off.
00:08:21.320And in 1994, early 95, a buddy of mine from Indiana, Todd Wagner, came to me and said, you know, there's this new Internet thing and you're the technology and networking geek.
00:08:32.360There's got to be a way that we can use this Internet thing to listen to Indiana sports over the Internet.
00:08:37.940And I'm like, OK, let me see if we can make this work.
00:08:41.700And the first thing I did was look to see if there was anybody else doing anything like that.
00:08:46.900There were some academic things going on, but no businesses.
00:08:50.180And so I bought a Packard Bell computer, set it up in the second bedroom of my house and try, you know, learn how to do Internet broadcasting is what we called it at the time.
00:08:59.460And we started a company called AudioNet.
00:09:01.020And we built that up to where we had, I don't know, 100 radio stations and thousands of broadcasts on there.
00:09:09.880And then we changed it to broadcast.com and added video.
00:09:40.460So I heard you tell the story about when you saw the stock go up and you realized you were making $6 billion and that you didn't have any clothes on.
00:09:49.680You were sitting in a seat looking at your computer.
00:09:58.360You know, sometimes you just got to hang loose.
00:10:02.120So what – I was just wondering, like, you know, when you – I realize it's stock and stock, but like, you know, when you get that money, at some point you actually get that money.
00:10:09.720And like, is that like direct deposit?
00:10:32.900And so what happens was they literally, you know, put, you know, 1.9 million shares – I forget the number of shares that we got, 19 million or something like that – shares of Yahoo stock.
00:10:43.080But because I traded stocks before, I knew that there was risk to the internet bubble, you know, that these stocks were not going to go up forever.
00:10:49.760And honestly, I already – I had a B next to my name at that point and thought to myself, how much more did I need?
00:10:55.760So I did something called a caller where I sold calls and bought puts to protect my downside.
00:11:01.860And that's how I ended up converting all that stock into cash.
00:11:05.500And as it turns out, when the internet stock market crashed, you know, I was protected and a lot of our employees, you know, we had 330 employees when we sold and 300 of them became paper millionaires.
00:11:16.940And we got – we convinced a lot of them to hedge like I did and they protected themselves as well.
00:11:21.960But at that point in time, once we collared it, which – and by the way, it ended up being called one of the top 10 trades on Wall Street of all time.
00:11:29.740But when I collared it and as those collars let off, that's how I got cash in my account.
00:11:35.140So it wasn't just like one big wire transfer.
00:11:36.880Okay, I understood like every third sentence of what you just said.
00:11:49.280So I wanted to ask you as somebody who came from, you know, middle class background and winds up, as you say, with the B after your name, is there any downside to having all that dough?
00:12:13.500There's hassles in life no matter how much money you have.
00:12:16.100You know, the friends I have now are my friends from high school and college and my rugby team and, you know, guys – you know, my roommates from Dallas when I first got to Dallas.
00:12:35.840Like when you were dating – I know you're married now.
00:12:38.280Yeah, but when you were dating, did you worry about that?
00:12:40.620Not so much worry because it was pretty obvious.
00:12:43.480You know, when you start to date somebody or go out with somebody and the first two things they said was, you know, I really love to just do charity work and travel.
00:13:35.260But right now, I'm still struggling with it and I smoke.
00:13:38.140The second thing is, I have terrible credit.
00:13:41.200I'm going to fix it, but it's not that I don't pay my bills.
00:13:44.620She said it's just I pay them more on like a quarterly basis.
00:13:47.620She said, the third thing is, I know you know me as this high powered lawyer at Jones Day, but what I really want to do is be a stay at home mom.
00:14:25.260Well, yeah, it just meant that I didn't have a lot of long term girlfriends in that in between period.
00:14:30.300Um, but when I met my wife, I was playing basketball at the gym and, and she was on the bike and one of my basketball buddies dated her sister.
00:14:41.120And he was like, you see that girl there?
00:14:54.860Do you worry about, I know you do because everybody who makes that kind of dough does, uh, even I I'm nowhere near your level, but even just having achieved success in my own life coming from a middle-class background, I worry about it.
00:15:06.900Raising kids who are entitled, you know, who don't have the drive to work hard.
00:15:12.680After their health, that is the first and foremost thing that scares the hell out of me.
00:15:16.820Literally Megan, it's something I think about every day, something my wife and I talk about all the time, you know, and it's something I talk to them about.
00:15:25.860My youngest son, Jake, middle Alyssa and Otis is Alexis.
00:15:29.320And, you know, with kids, they all have their own unique personality.
00:15:31.860So you have to kind of tailor the message to each one of them.
00:15:34.760But I make it really clear that there's no money train coming for them.
00:15:39.600They're going to have to make their own way and figure out how to earn a living, um, that I'd never let them fail, you know, so that they really, you know, couldn't.
00:15:49.480So they, they had bad struggles, but I was going to allow them to struggle.