Former Microsoft Corporation (MSFT) CEO Steve Ballmer to Buy LA Clippers for $2 Billion


Steve Ballmer, the former CEO of Microsoft Corporation (NASDAQ:MSFT), has agreed to buy the Los Angeles Clippers for $2 billion. In a recent program, CNBC’s Andrew Ross Sorkin together with Andy Sewer of Fortune Magazine and Reuters Digital’s Dan Colarusso discussed Ballmer’s recent deal. The acquisition is yet to be approved by the NBA board of governors.

Andrew Ross Sorkin opened the discussion by telling the team that if this acquisition is approved, it will set a record price for an NBA team. The former Microsoft Corporation (NASDAQ:MSFT) CEO outbid a group led by David Geffen and included Oprah Winfrey which bid $1.6 billion. Ballmer also beat a bid from Guggenheim Investments, which offered $1.2 billion.

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The sale of the LA Clippers to the former Microsoft Corporation (NASDAQ:MSFT) boss comes after Donald Sterling, the team’s owner, was meted a lifetime ban over racist comments. Shelly Sterling, Donald’s wife, announced through her counsel that she, on behalf of the Sterling Family Trust, which owns the franchise, has signed a binding contract that lets Ballmer acquire the Clippers.

Andy Serwer added that maybe this is God’s way of telling Ballmer that he has too much money to afford to buy the LA Clippers for $2 billion. He also added that maybe there is a pattern for Ballmer to be gleaned here, noting that the previous Microsoft Corporation (NASDAQ:MSFT) chief nearly overpaid for Yahoo! Inc. (NASDAQ:YHOO). Furthermore, Serwer thinks that Dick Parsons [Clippers CEO], Adam Silver [NBA Commissioner] and the NBA approve this deal as hinted by the speed of the deal’s progress.

Dan Colarusso agreed that this may be true. Furthermore, he told his colleagues that Sterling can protest all he wants, but he thinks Sterling’s wife and their legal team have handled all of the team’s former owner’s objections.

Watch the full video below where the team also discussed whether the Sterlings are not really in disagreement over whether they would sell the Clippers to the past Microsoft Corporation (NASDAQ:MSFT) top executive and whether Ballmer will be great at running the franchise.

Disclosure: None