deeps6x wrote:$350M revenue on an over $4B valuation? Wow, projections must be insane for future revenue streams.
Keep in mind that this is only $350M revenue, NOT profit. They are probably only making $100-150M profit.
There are a ton of better businesses to invest in these days. But if you are a billionaire and have already made more then you and your great grandchildren could ever spend, then I guess buying a chunk of, or a whole NBA team, is one of the highest profile things you can do to pump up your ego even more.
It comes with built in advertising for the parent company so there's that too.
Valuation (ie P/E ratio) is in line with most S&P companies, which historically have been 15x (early 2010s), up to 40x (crazy 2020 covid bubble), and has settled around 20-25x. at a 25x P/E and 150m profit you get a 3.75B valuation. It's not far off.