How John Kluge Went From Fritos Distributor To The Richest Person In America In The 1990

In 1990, the richest person in America wasn’t Warren Buffett or Bill Gates. It wasn’t a Silicon Valley tech visionary or a Wall Street financial wizard. It was a man most Americans had probably never heard of, a soft-spoken immigrant who made his first fortune selling snack foods. His name was John Kluge, and his net worth was $5.9 billion.

According to Forbes’s 1990 ranking, the five richest people in America at that time were:

1. John Kluge – $5.9 billion (media, Metromedia)
2. Warren Buffett – $3.8 billion (investments, Berkshire Hathaway)
3. Sam Walton – $3.5 billion (retail, Walmart)
4. Paul Getty Jr. – $3.2 billion (oil, Getty Oil inheritance)
5. H. Ross Perot – $3.0 billion (technology and services, EDS)

So, who was John Kluge and how did he earn a fortune that at one point made him the richest man in America?

Kluge didn’t invent the microchip or build a global investment empire. He started with Fritos and Cheetos. Then he bought a few struggling radio stations, rolled the dice on independent TV, and eventually built a media empire so valuable it became the launchpad for something far bigger. At the peak of his power, he owned everything from TV and radio stations to outdoor billboards, the Harlem Globetrotters, the Ice Capades, and even a paging company.

In 1986, Kluge sold his Metromedia television stations to a hungry media mogul named Rupert Murdoch. That deal made John the richest person in America, and laid the groundwork for something even more monumental: the creation of the Fox Broadcasting Company. The network that would go on to air “The Simpsons,” “American Idol,” “Family Guy,” “24,” “Glee,” and “NFL on Fox” was built directly on top of Kluge’s former TV stations. Without that sale, there may never have been a fourth major broadcast network—let alone one that would grow into one of the most influential media empires the world has ever seen.

Humble Beginnings

John Werner Kluge was born in Germany in 1914. After his father died in World War I, his mother remarried, and the family moved to Detroit in 1922. Kluge got his first job at age 10 and left home at 14 to pursue an education. Determined to succeed, he worked tirelessly to shed his German accent and earn scholarships.

After two years at Wayne State, he transferred to Columbia University on a full scholarship, including room and board, and graduated in 1937 with a degree in economics.

From Shipping Clerk To Entrepreneur

After graduating from Columbia in 1937, Kluge joined a small paper company in Detroit. Within three years, he went from shipping clerk to vice president and part-owner. That kind of meteoric ascent wasn’t common, but it speaks to his sharp business instincts and willingness to take initiative. By the time the 1940s arrived, Kluge wasn’t just an employee—he had equity and management control, which would have already made him relatively wealthy by pre-war standards.

He served in Army intelligence during World War II and then pivoted into broadcasting, launching his first radio station, WGAY, in Silver Spring, Maryland, in 1946.

That same year, he invested $90,000 to get the station up and running—a sum equivalent to about $1.2 million today.

In 1947, he founded the New England Fritos Corporation to distribute Fritos, Cheetos, Wrigley’s gum, Fleischmann’s yeast, and Blue Bonnet margarine across the Northeast. By 1951, his distribution empire included major brands like General Foods and Coca-Cola.

Building a Media Empire

In the 1950s, Kluge bought radio stations across the country in cities like St. Louis, Dallas, Buffalo, and Orlando. Then came his big leap into television. In the mid-1950s, he acquired a controlling interest in the Metropolitan Broadcasting Corporation, which operated two independent TV stations—WABD in New York and WTTG in Washington D.C.

By 1958, he was the company’s chairman and largest shareholder, having purchased the founder’s shares for $6 million. Under his leadership, the company expanded rapidly. In 1961, he renamed it Metromedia and added outdoor advertising, more TV and radio stations, and even live entertainment properties like the Harlem Globetrotters and Ice Capades.

From Billionaire to Broadcast Kingmaker

By the early 1980s, John Kluge had built Metromedia into a media empire—owning some of the most valuable independent television stations in the country, along with radio stations, outdoor advertising, and a collection of quirky entertainment assets. In 1984, he took the company private in a $1.1 billion leveraged buyout. It was a bold move, but Kluge wasn’t interested in running a public company. He was preparing for something bigger.

That moment came in 1986, when Rupert Murdoch came calling. Murdoch had ambitious plans to launch a fourth major broadcast network to compete with ABC, NBC, and CBS. What he didn’t have was the infrastructure: a network of stations strong enough to provide national reach. Kluge had exactly what Murdoch needed—TV stations in key markets like New York, Los Angeles, Chicago, and Dallas. The two men struck a deal: Murdoch would buy Kluge’s Metromedia television assets for $4 billion.

The sale instantly made Kluge the richest person in America, and it gave Murdoch the launching pad he needed. Just a year later, the Fox Broadcasting Company was born. The network’s early years were powered by hits like “Married… with Children,” “The Tracey Ullman Show,” and its breakout animated spinoff, “The Simpsons.” Over time, Fox would go on to redefine American pop culture with shows like “Beverly Hills, 90210,” “The X-Files,” “American Idol,” and “24”—as well as landmark sports deals like “NFL on Fox” and Major League Baseball.

None of it would have been possible without Kluge’s decision to build and then sell his independent stations. His eye for undervalued media assets—and perfect timing on the exit—didn’t just make him a billionaire. It made him a kingmaker in the modern television landscape.

Legacy and Fortune

Kluge passed away in 2010 at the age of 95. At the time of his death, his net worth was $6.5 billion. His philanthropic legacy includes hundreds of millions in donations to universities and the arts, especially Columbia University.

Kluge’s story remains iconic. A German immigrant who started with nothing, made millions selling snacks, and helped create one of the most influential TV networks of all time.

Not bad for a guy who started out selling Fritos.