(Bloomberg) — Mark Cuban has a knack for promoting on the high.
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Take the radio-streaming web site he based, Broadcast.com. It bought to Yahoo! Inc. for billions lower than a 12 months earlier than the dot-com bubble burst.
Then there was his sale of a stake in a Canadian web firm earlier than the announcement of a dilutive fairness deal — so well-timed he spent years warding off insider-trading costs.
Now, the 65-year-old entrepreneur is promoting a majority stake within the Dallas Mavericks, his most respected funding and one which’s introduced him nationwide celeb, alongside his position on the Shark Tank tv present.
Cuban purchased the Mavericks for $285 million in 2000, which means the reported $3.5 billion worth would signify a return of greater than 1,100%.
It additionally represents a big premium to the $2.77 billion Mavericks valuation set by sports activities media agency Sportico in December. That’s the valuation utilized by the Bloomberg Billionaires Index to calculate Cuban’s $6.4 billion fortune, which means his internet value would enhance greater than $700 million if the deal closes on the reported worth.
The acquisition by Miriam Adelson, the widow of on line casino magnate Sheldon Adelson, and her household got here out of a need by Adelson-owned Las Vegas Sands Corp. to construct a on line casino and enviornment advanced in Dallas, in response to an individual aware of the corporate’s considering.
Learn extra: Cuban’s Mavericks Sale Started With Talks A couple of Dallas On line casino
Whether or not this goes down as one other well-timed Cuban exit stays to be seen. Sports activities staff values have reached stratospheric heights, pushed by profitable media offers in addition to ultra-wealthy buyers chasing a restricted stock of franchises.
Good Timing
Cuban purchased the Mavericks after promoting Broadcast.com to Yahoo! for $4.7 billion in 1999. The next 12 months the bursting of the dot-com bubble noticed Yahoo’s shares erase most of their worth.
In 2004 he bought a stake in Canadian web firm Mamma.com. The corporate’s shares later fell after a dilutive personal funding was introduced. Cuban was hit with insider buying and selling costs by the Securities and Change Fee, which stated he averted losses of greater than $750,000 by promoting earlier than the announcement. He was discovered not liable at trial.
The $3.5 billion price ticket for the Mavericks can be lower than the $4 billion Mat Ishbia paid for the Phoenix Suns earlier this 12 months, the best worth ever paid for an NBA staff excluding minority curiosity gross sales. That deal additionally included the WNBA’s Mercury.
The previous two years have seen data paid for groups in a wide range of sports activities, together with $6 billion for the Washington Commanders NFL staff and $5.4 billion for Chelsea soccer membership.
Cuban has been a prolific startup investor exterior of the Mavericks and has made greater than 500 investments, in response to Pitchbook information, in addition to founding different corporations together with AXS TV and Mark Cuban Price Plus Medicine.
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