Billionaire Fertitta Brothers Sell Remaining UFC Stakes At $5 Billion Valuation

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Billionaire Fertitta Brothers Sell Remaining UFC Stakes At $5 Billion Valuation

Post by Kingfedor on Sun Sep 10, 2017 10:19 pm


Frank and Lorenzo Fertitta, who sold most of their stakes in mixed martial arts promoter UFC at a $4 billion valuation last summer, have now fully divested from the business.

The brothers sold their remaining equity—about 5.8% between them—last month to WME-IMG, which acquired the company in August 2016, a source with knowledge of the sale told Forbes. The Fertittas received roughly a 26% premium over last year’s transaction. The new deal values UFC at approximately $5 billion.

The Fertitta brothers are each currently worth an estimated $2 billion, according to Forbes’ real-time rankings of the world’s billionaires. Reached through a representative, the brothers declined to comment on last month’s transaction.

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Re: Billionaire Fertitta Brothers Sell Remaining UFC Stakes At $5 Billion Valuation

Post by Kinosis on Sun Sep 10, 2017 10:59 pm

How in the world did those idiots pay 4 billion for the ufc before and not even get it all?

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Re: Billionaire Fertitta Brothers Sell Remaining UFC Stakes At $5 Billion Valuation

Post by CDF47 on Mon Sep 11, 2017 3:22 pm

Hard to believe UFC is a $5 billion org.

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Re: Billionaire Fertitta Brothers Sell Remaining UFC Stakes At $5 Billion Valuation

Post by nodogoshi on Mon Sep 11, 2017 3:43 pm

CDF47 wrote:Hard to believe UFC is a $5 billion org.

UFC is a private company of course so it's somewhat different; that said, it's not entirely unlike Tesla being valued at $58 billion right now (to take an extreme example).

In Tesla's case, there's nothing on it's balance sheets to justify anywhere remotely near such a valuation. However, because they are on the forefront of 'smart cars', if you will (I don't actually know all about their business, we'll say 'smart cars'), the market values them very high, on the basis of future expectations.

In the case of UFC, the company that bought it likely paid a premium due to the UFC's status as market leader.

That being said, this forms the basis of (discounted) future-value projections, which indeed form the basis of present value. Actually, the purchase of the UFC probably would have increased its value considerably, like how Amazon purchasing Wholefoods did to Wholefoods recently.

I'm basically just talking out of my ass and going in circles for the most part, but I can see the UFC being valued that high.

The key isn't just how much it earns in shows in the present, but also the entire future value of all of the enterprises related to the franchise.

It's pretty clear I think that this was the Fertitta's strategy all along, with Reebok; Fight Pass; etc. Brand expansion, was the key, basically.

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Re: Billionaire Fertitta Brothers Sell Remaining UFC Stakes At $5 Billion Valuation

Post by CDF47 on Mon Sep 11, 2017 3:59 pm

nodogoshi wrote:
CDF47 wrote:Hard to believe UFC is a $5 billion org.

UFC is a private company of course so it's somewhat different; that said, it's not entirely unlike Tesla being valued at $58 billion right now (to take an extreme example).

In Tesla's case, there's nothing on it's balance sheets to justify anywhere remotely near such a valuation. However, because they are on the forefront of 'smart cars', if you will (I don't actually know all about their business, we'll say 'smart cars'), the market values them very high, on the basis of future expectations.

In the case of UFC, the company that bought it likely paid a premium due to the UFC's status as market leader.

That being said, this forms the basis of (discounted) future-value projections, which indeed form the basis of present value. Actually, the purchase of the UFC probably would have increased its value considerably, like how Amazon purchasing Wholefoods did to Wholefoods recently.

I'm basically just talking out of my ass and going in circles for the most part, but I can see the UFC being valued that high.

The key isn't just how much it earns in shows in the present, but also the entire future value of all of the enterprises related to the franchise.

It's pretty clear I think that this was the Fertitta's strategy all along, with Reebok; Fight Pass; etc. Brand expansion, was the key, basically.

Well they did expand the brand quite a bit. Still $5B is a lot higher sale than I would have ever predicted. PRIDE sold for $40M if I remember correctly.

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Re: Billionaire Fertitta Brothers Sell Remaining UFC Stakes At $5 Billion Valuation

Post by nodogoshi on Mon Sep 11, 2017 7:09 pm

CDF47 wrote:
nodogoshi wrote:
CDF47 wrote:Hard to believe UFC is a $5 billion org.

UFC is a private company of course so it's somewhat different; that said, it's not entirely unlike Tesla being valued at $58 billion right now (to take an extreme example).

In Tesla's case, there's nothing on it's balance sheets to justify anywhere remotely near such a valuation. However, because they are on the forefront of 'smart cars', if you will (I don't actually know all about their business, we'll say 'smart cars'), the market values them very high, on the basis of future expectations.

In the case of UFC, the company that bought it likely paid a premium due to the UFC's status as market leader.

That being said, this forms the basis of (discounted) future-value projections, which indeed form the basis of present value. Actually, the purchase of the UFC probably would have increased its value considerably, like how Amazon purchasing Wholefoods did to Wholefoods recently.

I'm basically just talking out of my ass and going in circles for the most part, but I can see the UFC being valued that high.

The key isn't just how much it earns in shows in the present, but also the entire future value of all of the enterprises related to the franchise.

It's pretty clear I think that this was the Fertitta's strategy all along, with Reebok; Fight Pass; etc. Brand expansion, was the key, basically.

Well they did expand the brand quite a bit.  Still $5B is a lot higher sale than I would have ever predicted.  PRIDE sold for $40M if I remember correctly.

Pride basically just sold for its assets, if I'm not wrong.

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Re: Billionaire Fertitta Brothers Sell Remaining UFC Stakes At $5 Billion Valuation

Post by CDF47 on Mon Sep 11, 2017 8:25 pm

nodogoshi wrote:
CDF47 wrote:
nodogoshi wrote:
CDF47 wrote:Hard to believe UFC is a $5 billion org.

UFC is a private company of course so it's somewhat different; that said, it's not entirely unlike Tesla being valued at $58 billion right now (to take an extreme example).

In Tesla's case, there's nothing on it's balance sheets to justify anywhere remotely near such a valuation. However, because they are on the forefront of 'smart cars', if you will (I don't actually know all about their business, we'll say 'smart cars'), the market values them very high, on the basis of future expectations.

In the case of UFC, the company that bought it likely paid a premium due to the UFC's status as market leader.

That being said, this forms the basis of (discounted) future-value projections, which indeed form the basis of present value. Actually, the purchase of the UFC probably would have increased its value considerably, like how Amazon purchasing Wholefoods did to Wholefoods recently.

I'm basically just talking out of my ass and going in circles for the most part, but I can see the UFC being valued that high.

The key isn't just how much it earns in shows in the present, but also the entire future value of all of the enterprises related to the franchise.

It's pretty clear I think that this was the Fertitta's strategy all along, with Reebok; Fight Pass; etc. Brand expansion, was the key, basically.

Well they did expand the brand quite a bit.  Still $5B is a lot higher sale than I would have ever predicted.  PRIDE sold for $40M if I remember correctly.

Pride basically just sold for its assets, if I'm not wrong.

Strikeforce also sold for $40M. Not sure what the differences were in the sales. Fighter contracts for some fighters with PRIDE didn't carry over to UFC is one difference.

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Re: Billionaire Fertitta Brothers Sell Remaining UFC Stakes At $5 Billion Valuation

Post by nodogoshi on Tue Sep 12, 2017 3:03 am

CDF47 wrote:
nodogoshi wrote:
CDF47 wrote:
nodogoshi wrote:
CDF47 wrote:Hard to believe UFC is a $5 billion org.

UFC is a private company of course so it's somewhat different; that said, it's not entirely unlike Tesla being valued at $58 billion right now (to take an extreme example).

In Tesla's case, there's nothing on it's balance sheets to justify anywhere remotely near such a valuation. However, because they are on the forefront of 'smart cars', if you will (I don't actually know all about their business, we'll say 'smart cars'), the market values them very high, on the basis of future expectations.

In the case of UFC, the company that bought it likely paid a premium due to the UFC's status as market leader.

That being said, this forms the basis of (discounted) future-value projections, which indeed form the basis of present value. Actually, the purchase of the UFC probably would have increased its value considerably, like how Amazon purchasing Wholefoods did to Wholefoods recently.

I'm basically just talking out of my ass and going in circles for the most part, but I can see the UFC being valued that high.

The key isn't just how much it earns in shows in the present, but also the entire future value of all of the enterprises related to the franchise.

It's pretty clear I think that this was the Fertitta's strategy all along, with Reebok; Fight Pass; etc. Brand expansion, was the key, basically.

Well they did expand the brand quite a bit.  Still $5B is a lot higher sale than I would have ever predicted.  PRIDE sold for $40M if I remember correctly.

Pride basically just sold for its assets, if I'm not wrong.

Strikeforce also sold for $40M.  Not sure what the differences were in the sales.  Fighter contracts for some fighters with PRIDE didn't carry over to UFC is one difference.

Well I guess the value really is fairly arbitrary; whatever someone, somewhere will pay.

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Re: Billionaire Fertitta Brothers Sell Remaining UFC Stakes At $5 Billion Valuation

Post by CDF47 on Tue Sep 12, 2017 4:11 pm

nodogoshi wrote:
CDF47 wrote:
nodogoshi wrote:
CDF47 wrote:
nodogoshi wrote:

UFC is a private company of course so it's somewhat different; that said, it's not entirely unlike Tesla being valued at $58 billion right now (to take an extreme example).

In Tesla's case, there's nothing on it's balance sheets to justify anywhere remotely near such a valuation. However, because they are on the forefront of 'smart cars', if you will (I don't actually know all about their business, we'll say 'smart cars'), the market values them very high, on the basis of future expectations.

In the case of UFC, the company that bought it likely paid a premium due to the UFC's status as market leader.

That being said, this forms the basis of (discounted) future-value projections, which indeed form the basis of present value. Actually, the purchase of the UFC probably would have increased its value considerably, like how Amazon purchasing Wholefoods did to Wholefoods recently.

I'm basically just talking out of my ass and going in circles for the most part, but I can see the UFC being valued that high.

The key isn't just how much it earns in shows in the present, but also the entire future value of all of the enterprises related to the franchise.

It's pretty clear I think that this was the Fertitta's strategy all along, with Reebok; Fight Pass; etc. Brand expansion, was the key, basically.

Well they did expand the brand quite a bit.  Still $5B is a lot higher sale than I would have ever predicted.  PRIDE sold for $40M if I remember correctly.

Pride basically just sold for its assets, if I'm not wrong.

Strikeforce also sold for $40M.  Not sure what the differences were in the sales.  Fighter contracts for some fighters with PRIDE didn't carry over to UFC is one difference.

Well I guess the value really is fairly arbitrary; whatever someone, somewhere will pay.

That's the way these sales seem to me.

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