Mark Cuban Sells Dallas Mavericks

30 Nov 2023 · 1 min

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In this YouTube commentary, the narrator outlines Mark Cuban's recent sale of a majority stake in the Dallas Mavericks for $3.5 billion, recalling his original 2000 purchase of the team for $285 million. The core focus is on how Cuban amassed the wealth to afford the Mavericks: in 1999 he sold Broadcast.com to Yahoo in an all‑stock transaction valued at $5.7 billion, giving him a $1.4 billion stake. Because he was barred from selling the Yahoo shares immediately, Cuban partnered with Goldman Sachs to implement a cost‑less collar—a combination of a protective put and a financing call—that locked in the $1.4 billion value despite Yahoo’s stock plummeting 90% from $130 to $13 per share by 2002. The narrator praises the move as a brilliant financial maneuver.

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Mark Cuban. He is out as a judge on Shark Tank, and he also just sold a majority stake in the Dallas Mavericks for $3.5 billion. Mark must be feeling it after buying the team for $285 million in 2000. Now, what I am personally most fixated on is how Mark Cuban initially made his money to be able to buy the Mavs. In 1999, Cuban sold Broadcast.com to Yahoo in an all-stock deal for $5.7 billion. His stake personally was worth $1.4 billion. He was restricted from selling his stock in Yahoo for a period of time. Mark wanted to lock in the value of his shares, so he worked with the big brains at Goldman Sachs to use a financial product called a costless collar. Mark Cuban was able to keep his $1.4 billion even though Yahoo stock fell 90% from $130 a share when he did the deal to $13 a share in 2002. What an absolute baller move by Mark Cuban.