Robert L. Johnson: the captain of capitalism: this business titan built the nation's top black network and sold it as a strategy for building even greater wealth.

Billionaire Robert L. Johnson has few equals when it comes to using the capital markets to create businesses that generate higher profits for investors. Perhaps best known as the founder and chairman of Black Entertainment Television, Johnson has blazed a trail of groundbreaking business deals throughout his career as an entrepreneur.

Johnson, 59, has done much to stimulate wealth building among African Americans. After founding BET in 1980, he slowly built it into a media industry darling, In 1991, he made BET the first black-owned company listed on the New York Stock Exchange when he took it public and raised $72 million on Wall Street. Having shares of BET available to the public triggered an increased interest in stock market investing among African Americans. Several shareholders became millionaires on paper that year, and even more became actual millionaires when Johnson paid a premium to buy back his shares from investors when he took BET private again in 1998.

Johnson's ability to close deals continues to keep him ahead of other entrepreneurs and corporate leaders. He has a tremendous knack for recognizing underserved markets within an industry, then positioning himself to capitalize from the growth of those niche markets. And with personal relationships with major industry players such as Viacom Chairman Sumner Redstone, Johnson has the political clout and financial wherewithal to pursue the big deal, win or lose.

In 2000, Johnson raised the bar on the level of business deals African Americans can execute in corporate America when he sold BET to Viacom for a reported $3 billion in stock. With that transaction, Johnson showed the true value black-owned businesses can command in the U.S. marketplace, and he created two black billionaires--himself and ex-wife Sheila. And while he has taken some heat for selling BET to Viacom, for Johnson, it was an "easy decision" because he places creating shareholder value above all else. As he said in our January 2005 Backtalk column: "I had an obligation to those investors to give them the maximum return on their investments. And the maximum return was selling to Viacom. ... Had there been a minority company willing to pay what Viacom paid ... they could have made that deal. But there was none."

Since selling BET, Johnson continues to be a catalyst for generating wealth within the black community by employing hundreds of African Americans and hiring black-owned enterprises as vendors through businesses that fall under The RLJ Cos. Johnson made history in 2002 by becoming the first African American majority owner of a major sports franchise, the NBA's Charlotte Bobcats. He also owns RLJ Development, a real estate investment company ranked No. 40 on the BE INDUSTRIAL/SERVICE 100 list with revenues of $92 million; RLJ Urban Lodging Fund, a $315 million private equity fund; and several other businesses in the gaming, restaurant, and music industries. This holding company provides an excellent platform for Johnson to pursue larger business deals.

To his credit, Johnson has also made giving money back to the community part of his business. He was listed among the top individual donors on BE's list of America's Leading Black Philanthropists. But he'd be the first to tell you that building businesses and increasing shareholder value is what he covets most of all. The way Johnson has used his skill as a capitalist is a lesson in how one business can be built and sold and used to buy more businesses that can expand wealth even further. It's a lesson all African Americans can follow to achieve full economic empowerment.

35 BLACK ENTERPRISE YEARS

As part of our 35th anniversary salute, BLACK enterprise presents Ultimate wealth Builders--a monthly series profiling entrepreneurs, financiers, and corporate chieftains. Through innovative thinking, these men and women have had an immeasurable impact on the wealth-building potential of black Americans. For profiles of all of our Ultimate Wealth Builders, go to www.blackenterprise.com.