Former Microsoft CEO Steve Ballmer Buys the LA Clippers For $2 Billion 270
DroidJason1 (3589319) writes "Former Microsoft CEO Steve Ballmer has purchased the LA Clippers for a whopping $2 billion, also setting a new record price for an NBA team. This deal is apparently tentative until Donald Sterling gives his blessing. Twenty-nine other NBA owners need to offer their approval as well, but that shouldn't be a problem as long as Ballmer reaffirms his commitment of keeping the Clippers in Los Angeles. Interestingly, Donald Sterling had purchased the team back in June of 1981 for $12.5 million." We talked about this earlier in the week when rumors of the purchase started circulating.
Re:Instead of a new TV I guess (Score:1, Interesting)
Worst CEO by what measure? He grew MS at consistent and above industry average rate during his stint as CEO, increased profit margin, market share and diversified their product range. He seems to have been one of the most successfull CEO's of the last decade. don't confuse your hatred of him and the MS shareprice with how he has gone as CEO. By all realistic measures he has been wildly successful
Re:What a punishment (Score:3, Interesting)
This is actually the sort of thing I was afraid was going to happen, sending a message that it's very profitable to be a bigot.
Re:What a punishment (Score:5, Interesting)
I wonder if he bought them for help with his chair throwing? I heard he's having problems with his follow through.
Re:Wow that much money? (Score:4, Interesting)
One has to wonder if Donald Sterling would have received this much money for his team without a scandal? It appears to me that he greatly profited from the scandal.
Without the scandal it wouldn't have been sold until after his death.
Almost certainly the scandal would have depressed the price if it changed it at all, I don't see how it made the Clippers more valuable. The longer Sterling held onto the Clippers the more they became associated with racism and the more the brand was damaged. Sterling had to sell quick and that meant the pool of potential buyers were whomever could scrape the cash on short notice. I don't expect it made a big dent in the final price but it probably depressed it a bit.
Re:Instead of a new TV I guess (Score:4, Interesting)
Stock price isn't actually a particularly good measure in the case of MS unless you also factor in P/E ratios, When balmer took over they were trading at a P/E ratio of around 40-45. That isn't a realistic number for any company unless they are expecting meteoric growth numbers which given the valuation at the time was just not possible or sustainable, they would have to have grown to well in excess of being a trillion dollar company today to justify that number or to put in perspective they would need to be worth more than apple and google combined. MS currently trade at P/E ratio of around 15.