UFC Strikeforce Merger: FTC Closes Probe Of Zuffa
by Nate Wilcox on Jan 31, 2012 9:30 PM EST
in Business of MMA
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The U.S. Federal Trade Commission has posted notice on its web site today stating that its Bureau of Competition has closed its investigation of the UFC's acquisition of Strikeforce.
Technically the FTC was investigating the purchase of Explosion Entertainment, LLC for $34 million by the UFC's parent company Zuffa LLC in March, 2011. They were looking to see if the purchase violated Section 7 of the Clayton Act or Section 5 of the Federal Trade Commission Act. The purchase was first reported by MMA Fighting's Ariel Helwani.
In the PDF posted on the FTC site, Donald S. Clark, FTC Secretary wrote, "Upon further review of this matter, it now appears that no further action is warranted by the Commission at this time. Accordingly, the investigation has been closed."
Strikeforce was put on the market when its major financial partner, Silicon Valley Sports & Entertainment elected to get out of the MMA business. SVSE owns the San Jose Sharks of the NHL and are seeking to bring another major sports franchise to San Jose.
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Congrats boys. Maybe that’s why Dana feels like he can take on anyone now.
Trainyard Sleepers: Our Foot Your Ass
by Hardy's in your face on Jan 31, 2012 9:05 PM EST reply actions
Well, not really, the existence of Bellator is a major reason why Zuffa buying Strikeforce wasn’t considered a move towards a monopoly… Ironically, Bellator is more valuable to Zuffa as a competitor than as their property…
In other news
Upon learning of this, Jerry Millen made some loud sounds resembling a screeching cat.
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Actually, that sound is his soul snapping like a Twix bar.
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Jerry Millen has a soul?
by ihateemo on Jan 31, 2012 11:03 PM EST via mobile up reply actions 1 recs
Federal investigations into your business usual dont fall into the nothing catagory.
Trainyard Sleepers: Our Foot Your Ass
I'm not afraid of you...internet.
Just try to learn from Rafa. He is the one from whom you should seek guidance.
by Hardy's in your face on Jan 31, 2012 10:00 PM EST up reply actions
When they get thrown out that's exactly where they end up.
follow me on twitter @polyh3dron
at the time of the much ado, it surely was not “nothing”. a federal investigation can take years off of your life.
Trainyard Sleepers: Our Foot Your Ass
I'm not afraid of you...internet.
Just try to learn from Rafa. He is the one from whom you should seek guidance.
by Hardy's in your face on Jan 31, 2012 10:22 PM EST up reply actions
nothing is a bit of an exaggeration, but it certainly wasn’t the sky falling that some people made it out to be.
i thought the feds would insert themselves into the situation as it relates to the consumer now being forced to pay to watch Werdum and others. obviously, i was wrong but the feds have certainly put them on notice that their business practices are being watched.
Trainyard Sleepers: Our Foot Your Ass
I'm not afraid of you...internet.
Just try to learn from Rafa. He is the one from whom you should seek guidance.
by Hardy's in your face on Jan 31, 2012 11:03 PM EST up reply actions
no they haven’t. In fact, they put them on notice that they aren’t investigating any more. Their business practices weren’t being watched, their purchase of strikeforce was being looked at, and they decided they didn’t really want to look into it.
The investigation entailed more than just the purchase but ok, you’re right, the feds made it clear that they aren’t interested in anything zuffa does form here on out.
I guess I’m stupid for thinking that the anti trust div of the doj is interested in following a company that has near monopolistic power in a growing segment of sports entertainment.
Trainyard Sleepers: Our Foot Your Ass
I'm not afraid of you...internet.
Just try to learn from Rafa. He is the one from whom you should seek guidance.
by Hardy's in your face on Jan 31, 2012 11:19 PM EST up reply actions
this is the much ado about nothing people were talking about. I’ve seen people talking about sponsorship taxes, you’re talking about someone forcing you to pay to see the #5 HW in the world fight, and other people are babbling about a whole bunch of other crazy.
Read the letter. Paraphrasing, it says, we were looking into your purchase of Strikeforce, now we are not.
I’m aware of the contents of the letter. You need to understand that the scope of the investigation had to do with the effects of the purchase and that includes impact to the consumer.
I never suggested that the investigation is clandestinly continuing. I was the first to congratulate zuffa on it concluding ( or at least not continuing). I said zuffa has been givin notice that transactions such as these will come under scrutiny by the feds.
Trainyard Sleepers: Our Foot Your Ass
I'm not afraid of you...internet.
Just try to learn from Rafa. He is the one from whom you should seek guidance.
by Hardy's in your face on Jan 31, 2012 11:36 PM EST up reply actions
The investigation was at the request of the Culinary Union...
that is at war with the Brothers because their casinos are non-union. The government heard one of its citzens, this case a group of citzens, concerns and investigated and said “no issues.” That’s totally different than how some are trying to spin this thing.
Also, the existence of Bellator, or any other MMA promotion, wouldn’t really be the main issue. It would be is Zuffa implementing monopolistic practices. The government’s job here isn’t to ensure that Zuffa has strong competitors, it’s to ensure Zuffa isn’t using practices that prevent competitors from running in a “fair” way.
by ChicagoMMAFan on Feb 1, 2012 10:14 AM EST up reply actions
Don't worry, Nate. You'll get something else to keep you up at night.
When a true genius appears in the world, you may know him by this sign, that the dunces are in a confederacy against him. - Jonathan Swift
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by Derek Suboticki on Jan 31, 2012 10:04 PM EST reply actions 8 recs
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Years ago someone told Polynesian DNA that everyone was surrounded by sea monsters and it believed them. It made humans that were immune to head injuries, fast enough to run on the highway, and big enough to use the carpool lane. Putting two of them in the same ring is like telling your local tectonic plates to fuck themselves.
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by Kevin Jennison J. Zametov-St Pierre on Feb 1, 2012 12:05 AM EST up reply actions
No brainer. No point in opening up a can of worms.
"You've got Floyd Mayweather making $25 million. He can't stop a double-leg..." Nick Diaz.
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