Michael Loeb is an entrepreneur and the founder of Loeb Enterprises. Loeb Enterprises is a venture capital company that invests in various companies, from start-up businesses to those with more experience.
Loeb also founded the Synapse Group, which he later sold to Time Warner. He has a net worth of $1 billion.
| Name | Michael Loeb |
|---|---|
| Date of Birth: | 1955-1956 (67-68 years old) |
| Place of Birth: | Queens, New York |
| Height: | Unknown |
| Profession: | Entrepreneur, businessman |
| Marital Status: | Married |
| Children: | 6 |
| Parents: | Marshall Loeb (father), mother unknown |
| Net Worth Estimate: | $1 billion |
Net Worth
It is unclear what Loeb’s exact net worth is. However, it is speculated to be approximately $1 billion.
The majority of Loeb’s wealth comes from his company, Loeb Enterprises. Loeb Enterprises is a venture capital company that has made approximately 18 investments, with each investment at around $1 to $5 million (1).
Additionally, Loeb was the previous founder and CEO of Synapse Group. In 2001, he sold the company to Time Warner for $500 million (2).
However, in 2017, Loeb was charged by Southampton police after he allegedly punched an 18-year-old guest at a party. Loeb was later released without bail and did not face any jail time for the incident (3).
Company
In 1993, Loeb founded the Synapse Group with his business partner, Rich Vogel.
The company helped to revolutionize the then-booming magazine and newspaper businesses by providing a way for consumers to purchase publications with their credit cards.
Additionally, the company created the concept of a magazine subscription (4).
When starting the company up, Loeb received funds from several later-stage venture capitalists. The first of these was in 1999 for $20.1 million, while the second took place the following year for $40 million (5).
This investment came from General Atlantic, a company specializing in investments. A few years later, Loeb worked alongside Time Inc. to create a private deal.
In Loeb’s words, this led “to a huge windfall” and meant that “Synapse was bootstrapped from its early days.
In 2001, Loeb sold a significant stake of the company to Time Warner.
This deal was valued at approximately $500 million (6). Loeb remained Chairman, CEO, and President of the company until 2005 (7). In 2006, Time Warner purchased the remaining amount of Synapse for approximately $140 million (8).
In 2006, Loeb founded the investment company Loeb Enterprises with Vogel, which functions as a venture capital group.
The company has made several investments, including Afininity China, AllTheRooms, LinkBee, Next Gen HQ, Steady, Mercato, Fetch Rewards, and Summit Sync.
For Affinity China, Loeb paid approximately $600,000, whereas for AllTheRooms it funded $3.3 million. For Link Bee, Loeb invested $6 million and $4.8 million in SummitSync.
Fetch Rewards received two investments, one at $9.6 million and then another the following year for $8 million. Loeb also invested $2.9 million in Mercato. The highest investment was for Steady in 2020 for $15 million.
Funding for Next Gen HQ is currently open.
At some point, however, SummitSync made an exit investment for unknown reasons (9). Loeb Enterprises has been responsible for several other successful products, including Script Relief and Priceline.com.
Script Relief has a revenue of approximately $4.3 million (10), whereas Priceline.com makes approximately $335 million per year (11).
Earnings
Loeb earns his money through Loeb Enterprises and his previous company, the Synapse Group. It is unclear how much he earned exactly from each of these groups.
However, he was able to purchase a property for a rumoured price of $21 million, indicating that he earned a substantial amount from these two companies (12).
Real Estate
Loeb owns a house on Meadow Lane in Southampton, New York. The land is approximately 7.5 acres, while the property itself is roughly 16,000 square feet (13).
In 2013, Loeb bought the land for approximately $21 million, or roughly $37,038,875 in today’s money. He then built the house on this land (14).
The house contains 12 bedrooms and 12 bathrooms, along with a guest house. The house also features a working zip-line and two media rooms (15). It functions as a summer retreat for Loeb, and his permanent home address is unknown.
Loeb also owns a separate property, which is a historic townhouse on the Upper East Side of Manhattan (16). The address and value of this home are unknown. However, similar properties in this area have been valued between $3 to $11 million (17).
Early Life
Loeb was born from approximately 1955 to 1956 in Queens, New York. His father, Marshall, was part of a number of Time Inc. companies and worked as an editor.
Later, Marshall became the managing editor for the magazine Fortune. Loeb’s mother’s name and job are unknown. As a child, Loeb struggled at school and claimed his grades were “solidly mediocre.”
Eventually, the family moved to Scarsdale, New York, where Loeb continued to struggle with his grades. He went on to study Psychology for his undergraduate degree at Amherst College.
However, his years of study and final grades are unknown. After graduating, Loeb followed in his father’s footsteps and joined Time Inc.. Unlike his father, though, he worked for the business division instead of the editorial division.
Career
While working for Time Inc., Loeb helped to launch several product lines that ultimately ended up being very successful. These include Sports Illustrated Video and Sports Illustrated for Kids.
However, in 1990, Time Inc. fired Loeb when he attempted to launch Entertainment Weekly. Being fired led to Loeb meeting Rich Vogel, who became Loeb’s long-term business partner, as well as his future wife, Margie Rich.
Together, Vogel and Loeb formed the Synapse Group, a revolutionary company at the time. They created the concept of a magazine and newspaper subscription, and they allowed consumers to pay for this with a credit card.
They introduced aspects like ‘frequent flier’ programs to the world of media.
Eventually, after less than a decade, Time Inc. reached out to Loeb, and they became the company’s biggest client. Both companies worked together on a private deal, which greatly benefited the Synapse Group. The company also found investment from General Atlantic.
In 2001, Time Inc. bought a significant share in the company for $500 million, and Loeb stepped down as President/CEO.
However, he remained a chairman of the company until 2005, when Time Inc. purchased the remaining shares of the Synapse Group to get full ownership.
Loeb and Vogel spent several years together deciding on their next business before eventually settling on Loeb Enterprises. The venture capital company was formed in 2006, although it changed its name to Loeb.nyc in 2019.
Through Loeb Enterprises, Loeb has invested in several high-value companies like Script Relief and Priceline.com. Loeb claims that his company differs from other investment companies because their business focuses more on theory.
As such, Loeb attempts different methods of getting success if the theory is sound, even though the actual execution may be unsuccessful.
Additionally, any companies that Loeb invests in also receives access to the company’s TV production studio and valuable marketing tools to use on the internet.
Loeb Enterprise has helped to fund several companies. One of the most recent investments was with the platform Steady, to which Loeb contributed $15 million to. Similarly, in 2019, Loeb funded Mercato with $2.9 million.
Career Highlights
- In 1990, Loeb formed the Synapse Group
- In 1997, Time Inc. made a private deal with Synapse
- In 2001, Time Inc. bought the majority share in Synapse for $500 million
- In 2001, Loeb sold Synapse completely to Time Inc.
- In 2006, Loeb formed Loeb Enterprises
- Loeb made several investments in companies, the highest was $15 million
Personal Life
Loeb is married to his wife, Margie Rich. It is unclear when or how they met, but the pair have six children together. They are Jason, aged 4, Caroline, Marc, and Jeremy, who are all 22, Katie, aged 34, and Michael, aged 35.
Interesting Facts
- Loeb donates to several charitable organizations, including Johns Hopkins, Mount Sinai, the Museum of Natural History, Year Up, and Amherst College. Additionally, Loebdonates to Juilliard School, and he is also a board member here.
- Loeb also runs a summer camp for privileged children, which costs approximately $25,000 to take part. The camp aims to teach children how to “wield their money and power [and] give the next generation of wealth clues to running a business and giving to charity.”
- In 2017, Loeb was charged with assault after allegedly hitting one of the 18-year-old guests at a charity event. The incident took place at Loeb’s Southampton residence and was allegedly caused by the guests becoming intoxicated and throwing up. Loeb was later released with no bail, and no further action was taken.
- When not living at the house, Loeb’s Southampton property is used as the main residence for the Showtime series Billions.
Summary
Michael Loeb is a businessman and creator of the Synapse Group. He sold this company to Time Inc. for more than $500 million in 2005.
Additionally, Loeb is the founder of Loeb Enterprises, which is a venture capital group. Loeb has invested in several companies and has a net worth of approximately $4 billion.