My nervousness with UBNT is one of the Grizzlies minority owners triggered the buy/sell cause. That gives Pera 90 days to negotiate a buyout which ends in January. If they can’t agree on price, then the minority owner names a team valuation. Then Pera gets 60 days to decide to buy him out at that valuation or sell at the same valuation. I’m pretty sure he’d have to sell some of his UBNT to buyout the other minority owner. Who knows what sort of loans are available at that level, so maybe he wouldn’t have to sell stock.
Pera owns 25% and there are two minority owners that own 14%. At a $1B evaluation, he’d have to pay $140M to buyout one and maybe $280M to buyout both minority owners. I guess UBNT is up so much, he’d only have to sell 7% of his stake which would mean he’d still own 65% which is still an easy voting majority. The risk is probably smaller than I thought. It was a lot bigger back when the stock was in the $40 range.