Tuesday, November 18, 2008

My Take on Mark Cuban

Tech Bubble billionaire, Dallas Mavericks owner, Chicago Cubs suitor, Blog Maverick founder and author, investor, agitator. Mark Cuban likes to get involved.

He didn't want to get involved in the PIPE offering being done by Mamma.com in 2004 and it will either cost him a lot of money or have long term negative effects on the PIPE market.

A PIPE is a Private Investment in Public Equity. If a public company wants to raise some quick cash and has some shares available for sale under an existing registration statement, they can place some without a new filing or expensive road show and offering. The problem is that such shares are typically offered at a meaningful discount to current market value and Cuban owned 6% of Mamma when he heard about the deal. Details here in WSJ.

Hundreds of people know about a PIPE when it is in the works. I'm not even sure how non-public it is. It has been years since I participated in a PIPE but if you are marketing one, don't call me. It is now officially way too much trouble.

Clusterstock is covering the anti-Bush conspiracy theory if you're interested.

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