Showtime Looking To Buy EliteXC?

Sherdog:

Showtime Networks filed public notice with the U.S. Securities and Exchange Commission Thursday announcing its intention to enter preliminary negotiations for the purchase of Pro Elite Inc.

Showtime, a subsidiary of the parent conglomerate CBS Corporation, already enjoys broadcasting deals with the Los Angeles-based company on both its premium cable channel and CBS. Showtime also has a 20% ownership stake in Pro Elite.

The potential acquisition could not come at a more opportune time for the fledging company, as Pro Elite faces a $55 million deficit accrued during its two years of operation.

It looks like Pro Elite’s rapid buyout of a lot the smaller mixed martial arts promotions (Cage Rage, Icon, ROR, KOTC…..) has finally caught up with them.

According to SEC filings, Pro Elite needed to raise 3.3 Million to continue operations, but fell short only obtaining 1 Million from Showtime which must be paid back by June 18, 2009 to fend off Showtime from holding “First Priority” interest stake in the company.

Comments

  1. Why not. Growing sport. Its a good investment.

  2. They keep overpaying and then they keep folding. Yet, all I see is people complaining about the fighters not making enough money with the UFC. Well show me an organization that pays as high or higher and stays in business….. There isn't one. Now that the UFC has blown up and is finally making some money all these others want a piece of the pie that the UFC created. You can't be a player if you can't afford to stay in the game.

  3. Thats beautiful Jake. I agree with that. I think that Elite managers don't know how the hell to run a business. They had money and thoght they could overtake the UFC with a few fighters. No, you need some type of depth. Then they tried the spectacle WWE road. Ite worked until Kimbo gassed against a guy who is known for being one-punched. If Elite was legit they wouldn't have stripped a champion (noons) for not fighting a chump (diaz). If they were legit they would have sided withe champion IMO.

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Kimbo Slice at an EliteXC - CBS media day workout in preparation for his Oct. 4 fight against legendary MMA...

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