Earlier today, Josh Gross from ESPN.com broke the news that the Federal Trade Commission has closed a non-public investigation into the UFC’s purchase of Strikeforce as of last week.
ESPN reports:
Documents published on the FTC website dated January 25, confirm the FTC’s Bureau of Competition conducted an investigation to determine whether the $34 million acquisition of Explosion Entertainment, LLC, by UFC’s parent company, Zuffa LLC, violated Section 7 of the Clayton Act or Section 5 of the Federal Trade Commission Act.
…
In closing letters issued to counsel for Zuffa and Explosion Entertainment, FTC secretary Donald S. Clark stated, “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.”
The full letter from the FTC is below (H/T: FightOpinion.com):
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
WASHINGTON, D.C. 20580
Office of the Secretary
January 25, 2012
Stephen Axinn, Esq.
Axinn Veltrop, and Harkrider LLP
1330 Connecticut Ave., NW
Washington, DC 20036
Re: Acquisition of Explosion Entertainment, LLC (Strikeforce) by Zuffa, LLC (UFC)
FTC File No. 111 0136
Dear Mr. Axinn:
The Federal Trade Commission’s Bureau of Competition has been conducting a nonpublic investigation to determine whether Zuffa, LLC’s acquisition of Explosion Entertainment, LLC may violate Section 7 of the Clayton Act or Section 5 of the Federal Trade Commission Act.
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. This action is not to be construed as a determination that a violation may not have occurred, just as the pendency of an investigation should not be construed as a determination that a violation has occurred. The Commission reserves the right to take such further action as the public interest may require.
By direction of the Commission.
Donald S. Clark
Secretary
Wow. 2 things to say.
1. I now know the actual purchase price was only $34 million, lower than I would have thought.
2. I now know where all my tax money goes. What a waste of time and money spent by the government. Ridiculous.
The entire investigation was started due to a bunch of people with a grudge against the UFC. There was never any evidence to even look into the matter.
The culinary union and all the others with agenda’s just wasted a ton of American tax payers money to further their own agenda. Its a shame this country lets stuff like this happen. The country is kiling itself with its strict literal interpretation of laws without the use of common sense. There should have been enough reason to see there was no evidence and see that the conplainers had an agenda to tell them to F off. But insteads they are required to basically become a weapon of revenge for a private group against another.
Any company making moves against unions will be singled out for scrutiny due to the political implications of lost funding. Most unions are NOT supportive of free enterprise.
The bad news is that there was an investigation at all. StrikeForce did not go up for sale because they were making scads of money–they were losing large.
The good news is that despite political influence, the FTC did the right thing, and ended their investigation–in effect, publicly exonerating Zuffa of anti-trust crimes.
It will be harder for Zuffa foes to play the monopoly card in future.