That didn't take long. And I wonder if there is a billion dollar sucker out there, well another one. It is going to be really hard to convince someone that 900+ million was a bargain last time, and now it is worth a lot more..
You just never know, there are individual triathletes out there that have a billion or more dollars, so could just be another hobby buy...[/quote]
I read somewhere that the Tour de France was netting over $200 million/yr for its owners, so that would give it a valuation somewhat north of a billion. For that they offer 21 days of televised programming, and adding in rebroadcasts possibly gives about 150 to 175 hours of airtime to sell advertising. It has a solid base in Europe and interest in it is growing all over the world. It also has some very large, and consistent sponsors. Compare that to the Ironman brand with limited televised events, a relatively short history, anemic growth outside the US, and inconsistent sponsorship. So while you may value a company at say six times earnings, the expectation is that it will continue those earnings and that there's a good possibility to grow those earnings (revenue growth, synergies, cost reductions, etc.). So either you expand more Ironman events, buy other events (increasing debt if you don't have the cash), raise prices, find more sponsors (what are you offering them), or come up with some type of new event (Ironman Olympic event or something), you're going to have difficulty maintaining revenue. I believe WTC has already been trying some of these with little success, so it probably is a good idea to divest. I wonder if WTC would be attractive for the TdF owners, it would give them something to do in months other than July.