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High price tag Broadcast.com co-founder offers $280 million for Mavs
Posted: Tuesday January 04, 2000 06:43 PM
DALLAS (AP) -- Internet entrepreneur Mark Cuban has season tickets next to the Dallas Mavericks' bench. Soon, he could very well be signing the team's paychecks. The co-founder of Broadcast.com has offered $280 million to buy the struggling NBA franchise. Media reports about the deal "have been pretty right on," the 41-year-old Internet entrepreneur and avid sports fan told The Associated Press in a response Tuesday via e-mail. Unlike current owner Ross Perot Jr., Cuban is a basketball fan. Perot admitted when his group paid $125 million for the team less than four years ago that he didn't know how many players each team put on the floor. Cuban has had previous conversations with Perot about selling the team, but Perot wasn't interested then. "Ross Perot Jr.'s Hillwood Development Corp. has reached a preliminary agreement ... to sell controlling interest," the Mavericks said Tuesday. "Following completion of the proposed transaction, Mr. Perot and Hillwood will be the owner of a minority share in the Mavericks." The release said Perot will sell a portion of his share in the American Airlines Center, the arena now under construction in downtown Dallas. When completed in the fall of 2001, it will be the home of both the Mavericks and the NHL's Dallas Stars. The NBA must approve the purchase, and an agreement is expected to be completed by March. "Basically, we don't want to make any comment on purchases or sellings of teams, because they must be submitted for approval from the board of governors," NBA spokesman Dwayne Harrison said. The Mavericks haven't had a winning season since 1989-90 and were 9-21 this year before Tuesday night's game at Denver. Cuban started Broadcast.com with fellow Indiana University graduate Todd Wagner in 1995. Broadcast.com grew out of their frustration at not being able to find Hoosiers basketball games on radio or TV in Dallas. They developed a way for followers of virtually any college or pro sports team to pick up their broadcasts on the Internet. The venture was a lifesaver for sports fans everywhere, and the stock price of Broadcast.com exploded. Yahoo bought Broadcast.com last summer for about $6 billion. The Wall Street Journal estimated Cuban's stake at $1.5 billion. Cuban is a native of Pittsburgh, where he grew up in a working-class family. He tried last year to buy the Pittsburgh Penguins. Under Perot's ownership, the Mavericks and the Stars got voters to approve a new arena for the teams. Perot and Stars owner Tom Hicks are involved in developing much of the land around it.
Perot's company would continue to oversee the arena project until its completion.
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