Now the IFL is a shadow of its former self, a true ($0.01) penny stock. However, yesterday the stock saw incredible volume (3.48 million) and shot up 33.33% on rumors it was going to be taken over by the UFC.
The privately-held UFC is no stranger to buying out its competition. Its acquisition targets in the past have included PRIDE Fighting Championships (a reportedly $65 million deal), the World Fighting Alliance, and World Extreme Cagefighting.
The key drivers behind this buyout by the UFC would be:
While other fight organizations have been mentioned as potential buyers, the UFC is the only company with sufficient scale for a purchase to truly make sense. So don't expect a bidding war, especially over an asset that no one is really that excited about.
*UPDATE: On Friday, the stock was up another 21.43% to $0.017. We haven't seen any new news, but we'll keep you posted.
1. You got this right: "The privately-held UFC is no stranger to buying out its competition. Its acquisition targets in the past have included PRIDE Fighting Championships (a reportedly $65 million deal), the World Fighting Alliance, and World Extreme Cagefighting."
2. As for the cheap, silly acquisition price "rumor:" "cheap price (the market cap of the IFL currently sits just over $1 million and the rumors swirling around have the UFC buying the company for even less than that) ," you may know (what everyone is well aware of) that Dana has spread these type of rumors in the past. They did not work then, and they will not work now. Jay (the CEO) is a well experienced businesman, and if Dana wants it he better be prepared to pay a top price (over $50MM, IMO) for it.
Best regards,
Mike
It's true that Dana's word can't be taken at face value, but don't hold your breath for $50 million. Is the IFL equal to Pride? Hardly.
If one listen to Dana, IFL is not worth much. But after trying to eliminate UFC's main competitor (through lawsuits, bad rumos, misinformation - like the one at the bottom of this note -see below), apparently he decided to acquire IFL instead. :Some say, in fact it may be a reverse merger between ZUFFA/UFC(?) into IFL.
PS: Sorry for mispelling your name
Mike
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http://www.yardbarker.com/rss_articles/Q_ampA_with_Dana_White/573724
'Let me tell you what. People have been trying to compete with the UFC for years, even before we bought it. The last big one everyone thought was a big threat ... was the IFL. They went public, raised 800-[expletive deleted] million dollars, then they were talking about doing fighter benefits and stuff. They got the first network deal, those other guys weren’t the first on. They got time on 60 Minutes with us when 60 Minutes did their piece on us, and now the IFL is gone. They are [expletive deleted] down, their stock is worth half a cent (Editor's note: IFLI closed Friday at $0.02).
oh yeah make jo fight i think he'd give some a the best a good go
ha ha ha
"Jay (the CEO) is a well experienced businesman, and if Dana wants it he better be prepared to pay a top price (over $50MM, IMO) for it."
*** Considering the fact that Jay Larkin set the price at $1,000,000, LOL @ your opinion, huh?
Source: http://www.portfolio.com/views/columns/the-windup/2008/06/13/Ultimate-Fighting-League-Struggles#page3
"The league is on the block. The asking price is $1 million, but Larkin says any creative offer will be considered. "We're debt-free," Larkin says. Then again, bankruptcy is in the eye of the beholder. "The I.F.L. is making money," insists Matt Lindland, the coach of Team Quest. "It's just spending more money than it's making."
I guess Dana "The Baldfather" White is simply exercising his right to be, well... "creative."
I was wondering when this ifl company is going to sell DO you think anytime soon?
or how about if they do sell how would that effect the stock? would it go up or go down? i bought 14,000 shares @0.028 per share did i make a smart incestment or NO! thanks
"Larkin would rather consolidate than donate. He is open to a merger, if not an outright partnership. On the other hand, a would-be umbrella organization calling itself the World Organization of Mixed Martial Artists has lobbied to rank every M.M.A. fighter and sanction title matches between competing companies."
Mike