Friday, April 03, 2015

OK, maybe Prokhorov might have to temper his expectations

Mike Ozanian in Forbes, The Ballmer Bubble Bursts:
After former Microsoft MSFT -1.02% CEO Steve Ballmer paid $2 billion for the Los Angeles Clippers a year ago, $400 million more than the next-highest offer for the NBA team, the question being asked was “what would be the impact on team values?
Answer: It was an outlier of significant proportion.
Just ask Russian billionaire Mikhail Prokhorov, who has been trying in vain to get $3 billion for the Brooklyn Nets and the Barclays Center. Or look at the pending sale of the Atlanta Hawks, where some thought Bruce Levenson might get around $1 billion. The highest bid for the Hawks presently is $800 million.
That doesn't mean Prokhorov won't make a big profit for his 80% of the Nets and 45% of the arena (operating company), just not quite as much as what his advisors thought he could get.

Ozanian previously wrote Sale Of Brooklyn Nets Stalled Because Prokhorov Wants $3 Billion:
The sale of the Brooklyn Nets has stalled because Mikhail Prokhorovis trying get a $3 billion valuation for the team and Barclays Center while keeping a controlling interest in the NBA team.
....That seems rather ambitious when you consider that at Prokhorov’s price, the buyer would be paying $1 billion more than what Steve Ballmer paid for the Los Angeles Clippers. The Clippers are very profitable team, while the Nets lost the most money in the league during the 2013-14 season.

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