Quote:
Originally Posted by chumdawg
Are you sure the selling price was only for the controlling interest(s)? I always thought the selling price reported was the franchise valuation, with the cash changing hands being rated according to the percent of shares transferring.
In other words, instead of "Joe Blow bought Franchise X for $500MM" meaning that he paid $500MM for half of it, "Joe Blow bought Franchise X for $500MM" meaning that he bought 50% of something valued at $500MM for a price of $250MM.
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In fact, you're absolutely right. Some of the earlier stories I read phrased it incorrectly, but your assumption is apparently spot on per more credible sources:
Quote:
Sources told ESPN.com that NBA teams were formally notified Sunday night that the Kings have been valued at $525 million and that the Maloofs and a group led by hedge fund manager Chris Hansen have executed a purchase and sale agreement, which the NBA confirmed through a statement Monday morning.
. . .
The agreement to transfer the 65 percent majority stake in the Kings to the Seattle group headed by Hansen and Microsoft CEO Steve Ballmer represents the 53 percent owned by the Maloofs and an additional 12 percent from minority owner Bob Hernreich
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Ups to chum.
Now I wonder, though: within the past month or two, have the share prices started to reflect the near-certainty in long-term increased value from the likely move to Seattle?