STATS has a new owner

[fozzie]

Sold to a private-equity company in San Francisco, Vista Equity Partners.

No comment from STATS in the announcement release. (The following links both say the same thing.)

http://www.ap.org/content/press-release ... -stats-llc

http://www.stats.com/pr_051514.asp

[Deadheadz]

It's Gekko's shell corporation.

[Edwards Kings]

Greg and Tom, any known impact to you guys at this time?

[Rainiers]

I heard rumours that Greg and Tom are cashing in their stock options and celebrating by running down to Wrigley and taking in the Brewers-Cubs games this weekend.

Also heard something about how it's going to be nice sitting on the other side of the table at the NFBC, playing the game instead of working it. Greg has signed up for the Platitum League next year and is already demanding a lower percentage cut for Stats. Tom has his own list of ideas on how to improve the software.

[Greg Ambrosius]

Greg and Tom, any known impact to you guys at this time?

We just got the news of the sale yesterday like everyone else and don't know a whole lot yet, although being owned by a $12 billion investment company can't be all bad. They invest in technology, so this should be exciting. I've heard a lot of positives from our management team and I look forward to learning more.

I can't think of any impact to us other than positive. I know that investors that looked over the company had questions about the fantasy side as they saw the growth curve going up each year and several asked how they could move the needle even further. I think it's an exciting time for our space and with new management. It's all good from what we can see.

STATS is an incredible company with great world-wide potential. I think we are in a great spot and our future looks brighter than ever before.

Here's another story:

http://www.chicagobusiness.com/article/ ... quity-firm

[Edwards Kings]

I am glad it you and Tom (and all) will be ok. Working for a company held by private equity can be...interesting....

[Glenneration X]

Working for a company held by private equity can be...interesting....

From what I understand, oftentimes these private equity firms buy a company to break it up and sell it off in pieces.
Why do I think the new STATS owners got a worthwhile bid for one of the FAAB servers last night.



In this photo: One of the new owners at STATS last night after seeing that the FAAB server that handles the Platinum and a few other leagues just reached its reserve bid price on Ebay.

[CASS]

This is so bizarre for me. Vista EQ bought the company I worked at for 16 years (Financial software based) a few years ago for north of 2B. Odd to see them interested in STATS based on their portfolio but what do I know. I can tell you things went poorly in the years that followed.

[Roy's Outlaws]

I see a spin off fantasy IPO in the future?

[Navel Lint]

This is so bizarre for me. Vista EQ bought the company I worked at for 16 years (Financial software based) a few years ago for north of 2B. Odd to see them interested in STATS based on their portfolio but what do I know. I can tell you things went poorly in the years that followed.

I don't know anything about your company, so this is just a wild guess; but I would be willing to bet that things turned out okay for Vista and the original Board of your company, maybe not so much for everyone else. But as I say, that is just a wild guess

Hopefully, as Greg has said, this is a positive move for Stats.........and the NFBC

I will say, if I was an employee with Stats, particularly a pensioned employee, I would be very interested in knowing the financial details of this purchase.

I would also love to hear KJ's take on this deal.............

[KJ Duke]

Often businesses tied to sports have lower returns because too many people want to be involved in the sports world so they're willing to take lower returns or salaries to be in the business. The rare exceptions exist in the case of strong market power. I suspect for the new VC owner it's a little of both above, though they might not admit to the first one.

STATS is entrenched with the major sports leagues and the VC - likely bringing technology to the table - may see an opportunity to expand that with better tech, selling into a customer base that is flush with cash. As for the fantasy side of STATS, I'd be surprised if they have much if any interest given its current scale; accordingly, either the fantasy business will remain as is (no new investment) or become available for sale to management or someone else. All of that is just a guess however, since I haven't spoken to anyone on any side of it.

[chest .rockwell]

I wrote this on another thread

Had dinner last night with 3 investment bankers and two of the three of them put an LOI down on this business. An LOI essentially outlines the conditions of a purchase subject to due diligence and financing. Neither came real close and were ultimately surprised at what the business went for. The concerning thing was neither of them knew a thing about fantasy sports as part of Stats.

For the purposes of the future of fantasy baseball with stats I would not read much in to that. I have done business with private equity for years and they knew nothing about our smaller business units as long as they produced EBIDTA and produced positive cash flow without a drain on major resources. I also find the notion that private equity is bad for the general employee to be overstated. I have bought, sold, and currently invest in a couple of private equity funds. The three biggest concerns an employee should have with private equity in my opinion are 1) an arrogance to think they know the business better than senior management and therefore not listening. 2) The amount of debt they will want to place and continue to place on the business always decreases the margin for error 3) The culture changes with ownership and usually a company is great because the owner is bold and great. I think STATS went from essentially one type of institutional ownership to another so that risk is small here.

As a consumer of the product it just reinforces why the technology is not all that great. It is a minor business unit some might say an after thought.I know we love this game... but non one has gotten rich from fantasy sports as far as I know. I for one will not give Greg crap about the technology. He is probably up against a lot of battles to get anything done. Be thankful for what we do get and realize the alternative might be Ryan F Houston or Ryan G Houston.

[chest .rockwell]

Often businesses tied to sports have lower returns because too many people want to be involved in the sports world so they're willing to take lower returns or salaries to be in the business. The rare exceptions exist in the case of strong market power. I suspect for the new VC owner it's a little of both above, though they might not admit to the first one.

STATS is entrenched with the major sports leagues and the VC - likely bringing technology to the table - may see an opportunity to expand that with better tech, selling into a customer base that is flush with cash. As for the fantasy side of STATS, I'd be surprised if they have much if any interest given its current scale; accordingly, either the fantasy business will remain as is (no new investment) or become available for sale to management or someone else. All of that is just a guess however, since I haven't spoken to anyone on any side of it.

I completely disagree with the first notion. Except the part about talent is willing to work for less. I have yet to meet a private equity guy or girl who puts emotion in to anything.

I could not agree more on the second and more important part. That is exactly why the two bankers who put in 8 times plus bids (not a low ball offer) saw the opportunity. Vista just wanted it more. It is a huge seller's market out there right now. Lots of strategic (regular company) cash on the sidelines therefore driving up prices when they do enter, very cheap debt, and just not a lot of great companies for sale.

[KJ Duke]

Often businesses tied to sports have lower returns because too many people want to be involved in the sports world so they're willing to take lower returns or salaries to be in the business. The rare exceptions exist in the case of strong market power. I suspect for the new VC owner it's a little of both above, though they might not admit to the first one.

I completely disagree with the first notion. Except the part about talent is willing to work for less. I have yet to meet a private equity guy or girl who puts emotion in to anything.

I'm not talking about PE in particular, it is ownership of sports-related businesses in general. I covered the leisure industry among others when I worked for a WS/IB firm and I can assure you that there is too much money chasing too little profit opportunity throughout the sports industry. Even the investment bankers were more excited about a potential deal if we were going to visit a Rawlings, as opposed to say, an industrial gas manufacturer ... and so was I. Of course none of them would admit that to anyone on the outside.

[Walla Walla]

I'm glad I got in when I did for the live Drafts. I have a bad feeling about this buyout. Good luck down the road.

[Greg Ambrosius]

OMG. Now I've seen it all on these boards.

[DOUGHBOYS]

I'm glad I got in when I did for the live Drafts. I have a bad feeling about this buyout. Good luck down the road.

John, I saw you in the 60's.
You were carrying a, ' THE WORLD IS ENDING TODAY' sign.