Baseball Musings
Baseball Musings
February 12, 2007
Brave New Sale?

There's a report the Braves are about to be sold. However, I'm not sure I understand the pricing:

The deal, which must still be approved by Major League Baseball, would involve Time Warner transferring the Braves, a group of craft magazines and $1 billion in cash to Liberty in exchange for about 60 million shares of Time Warner, the Journal reported, citing an unidentified person familiar with the deal.

Based on the closing price of Time Warner's stock Monday, the market value of those shares would be about $1.27 billion.

Does this mean the Braves are being valued at less than $270,000,000? That seems pretty cheap for a bad franchise these days. Either that, or Time Warner thinks its stock is going way up in future.


Posted by David Pinto at 08:22 PM | Management | TrackBack (0)
Comments

Dave, the Braves are valued at approximately $460 million for transactional purposes. Asset value fluctuation and tax/debt implications affect the headline numbers.

Posted by: abe at February 12, 2007 08:57 PM

This looks more like a case of Time Warner buying out a major stockholder than just selling off the Braves.

Posted by: Larry Faria at February 15, 2007 11:52 PM
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