The headline is not a joke. Yesterday, at the Ira Sohn Conference, David Einhorn talked about Microsoft and Delta Lloyd (a dutch insurer). He finished his speech and the host thanked him for it. However, he got back and said one last line “lets go mets”. I thought at the time it was just a bit of a cheesy line, but it turns out I was wrong!
According to the WSJ , last year Einhorn was asked:
Question: You grew up first in New Jersey and then in the Milwaukee area after your family moved. So, Yankees or Brewers?
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Einhorn: Brewers! In New Jersey we were actually Mets fans. Here’s a rare known fact: I was [Former Mets slugger] Dave Kingman for Halloween one year, as a five- or six-year-old. Between the Mets and Brewers, still Brewers, with a little soft spot for the Mets. But nothing for the Yankees.
Here are some of the details of the transaction:
The Mets’ owners have agreed to sell a minority stake in the team to investor David Einhorn, a person close to the investigation told the Daily News Thursday.
The sale of less than 50% of the team – for about $200 million – leaves Fred and Jeff Wilpon Wilpon and Saul Katz in control of the team but gives them an injection of money to pay off debts, cover operating costs and invest in the team.
Read more: http://www.nydailynews.com/sports/baseball/mets/2011/05/26/2011-05-26_new_york_mets_owners_sell_minority_stake_david_einhorn_hedge_fund_president_sour.html#ixzz1NSzUBk00
Although some people are already criticizing the transaction I would wait. Wilpon is under serious pressure to sell, and value investors know when there is “forced selling” there are a lot of bargains. Although, I am a Yankees fan I am sure Einhorn thought a good deal about the transaction and about the potential profit he can make. Of course, when it comes to sports things get sentimental. But David Einhorn, analyzes every transaction very carefully. I am sure there will be more news coming out, and we will see this is more of a Buffett BNI transaction, and not a AOL-Times warner repeat.