When Steve Ballmer’s purchase of the Los Angeles Clippers for $2 billion became official on Tuesday, the voluble former Microsoft chief executive officer went on a brief victory lap in the media. “It’s the price I paid, and I’m thrilled,” he told Bloomberg News. “I have a history of looking at tech companies, and I’d say, basketball teams are lower-risk,” he said of the off-the-charts price he paid for the team. In comments to ESPN, Ballmer elaborated on his tech comparison: “It’s not a cheap price, but when you’re used to looking at tech companies with huge risk, no earnings, and huge multiples, this doesn’t look like the craziest thing I’ve ever acquired.”
Ballmer is right.
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