UFC CEO Lorenzo Fertitta, UFC president Dana White, Strikeforce CEO Scott Coker.
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.
0 recs | 28 comments
Congrats boys. Maybe that’s why Dana feels like he can take on anyone now.
Hardy's in your face - January 31, 2012
That’s one less piece of ammo for the opposition to use to keep MMA out of NY.
amendamatrix - January 31, 2012
Clear road ahead now to buy Bellator when Viacom sells : )
Shocbomb - January 31, 2012
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…
Shnak - February 1, 2012
just like apple to microsoft back in the day
amazing how things can change.
Clifford J - February 1, 2012
In other news
Upon learning of this, Jerry Millen made some loud sounds resembling a screeching cat.
Rob Young - January 31, 2012
Actually, that sound is his soul snapping like a Twix bar.
RobertGBP - January 31, 2012
Jerry Millen has a soul?
ihateemo - January 31, 2012 via mobile
I’d rather have the twix bar.
iiowyn - February 1, 2012
Yet another case of much ado about nothing
Steve4192 - January 31, 2012
Federal investigations into your business usual dont fall into the nothing catagory.
Hardy's in your face - January 31, 2012
this one apparently did.
Phildo - January 31, 2012
When they get thrown out that's exactly where they end up.
Rob Young - January 31, 2012
at the time of the much ado, it surely was not “nothing”. a federal investigation can take years off of your life.
Hardy's in your face - January 31, 2012
nothing is a bit of an exaggeration, but it certainly wasn’t the sky falling that some people made it out to be.
Phildo - January 31, 2012
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.
Hardy's in your face - January 31, 2012
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.
Phildo - January 31, 2012
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.
Hardy's in your face - January 31, 2012
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.
Phildo - January 31, 2012
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.
Hardy's in your face - January 31, 2012
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.
ChicagoMMAFan - February 1, 2012
not to nitpick, but the FTC is an independent agency and an entirely different entity from the DOJ.
thuggis - February 1, 2012
Don't worry, Nate. You'll get something else to keep you up at night.
Derek Suboticki - January 31, 2012
rec'd
Kevin Jennison J. Zametov-St Pierre - February 1, 2012
No brainer. No point in opening up a can of worms.
pud333 - January 31, 2012
" :) "
explains DW twitter grin.
higgledy-piggledy - February 1, 2012
ESPN is not happy
Coeman - February 1, 2012
espn doesn’t care
Phildo - February 1, 2012
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