Mark Cuban Net Worth
Mark Cuban net worth: Mark Cuban is a remarkably successful American entrepreneur who has a net worth of $2.7 billion. In addition to being a multi-billionaire, Mark Cuban owns the Dallas Mavericks, Magnolia Pictures, Landmark Theaters and is chairman of HDNet, an HDTV Cable Network. Cuban is very philanthropic and gives freely to many charities, especially to the Fallen Patriot Plan which helps the families of fallen soldiers. He was born July 31, 1954 in Pittsburg, Pennsylvania. In his first attempt at being an entrepreneur, he started a company called Micro Solutions which resold software – successfully. In fact, that company grew and prospered to the point where it was purchased by CompuServe in 1995 for $6 million. Cuban's take on that deal was $2 million after taxes. That same year, Cuban started a new company, Audionet, based solely on his twin interests of college basketball and webcasting. Over time, the company's name was changed to Broadcast.com and after growing to over 100 employees and $100 million in annual revenue, the company was purchased by Yahoo in 1999 for $5.7 billion in stock.
Predicting the Bubble's Burst
Mark's smartest financial move of all time was being able to foresee that the dotcom bubble would eventually burst. On the day the Broadcast deal officially closed, Yahoo's stock was trading at $163 per share. Six months later, when Cuban's lockup agreement expired, the price per share was roughly the same. Cuban's firm belief that the internet bubble was about to burst led him to sell 100% of his Yahoo shares as soon as he was his lockup expired. This move netted Mark $2.5 billion in cash. Over the next year and a half as the bubble eventually burst, Yahoo's stock price slid from 100, to 70, to 50, to 30. By October of 2001, Yahoo hit an all time low of $8.11 per share. That's a 95% drop compared to $163 a share when Cuban sold. In other words, Mark's $2.5 billion worth of stock could have become worth as little as $125 million. Still a nice fortune, but not enough to buy an NBA team, movie studio, cable network, private jets…