We don't believe the rumors Warren Buffet may be buying TapouT.
Do you believe the rumors Warren Buffet will buy TapouT? We have read Warren Buffet's books, we don't just follow the buffet like James Toney.
We will go on record and say Warren Buffet will almost certainly NOT buy TapouT because this purchase does not follow his golden rule of TapouT having a durable competitive advantage. Yes they made $500 million in revenue and have great gyms and a large percentage of the market. However, as students of Buffet (and not the buffet like James Toney) staying power is his #1 factor. MMA fans can be fickle as we all know. Buffet will not even buy Intel stock unless at a firesale price because competition is fierce with just a few competitors like AMD. Do you really think he would plunge into the highly competitive world of MMA?
MMA’s top clothing brand TapouT has been synonymous with the sport for over 10 years, but their future could hold many changes. Sources close to TapouT have told MMAPrime.TV that the company will soon announce that they are sold or being sold and that sales representatives have already been let go from the clothing company’s headquarters. The source also stated that the new buyer is possibly none other than reputed billionaire Warren Buffett.
TapouT was started by Dan Caldwell (aka “Punkass”) and the late Charles Lewis Jr (aka “Mask”) back in 1997. From it’s beginning in San Bernardino, CA to it’s current status as one of the most recognizable brands in popular culture, TapouT has become a multi-million dollar company and even spawned a reality television series which was aired on the Versus channel.
The recognizable faces of “Mask”, “Punkass” and “SkySkrape” were always noticeable at MMA events and have been a strong proponent for the continued growth of the sport, specifically the UFC.
Details of the purchase such as how much the company was bought for are not yet available at this time. Also, the current status of the remaining members is unclear, though we hope to have more information regarding all facets of this story as it comes to us.
UPDATE: The information reported is from a source close to the situation however the news has not been officially confirmed with TapouT. The purpose of the report is to bring this interesting business news to the fans of the sport. In no way are MMAPrime.TV or myself (Adam Lawman) saying that all the information is 100% exact fact. However, the source is reputable and proven so at least the base of the report is fairly accurate.
I wanted to clarify because there was a large number of readers whom took the initial report as set in stone facts. Many elements of the new deal may change as the final processes start to take shape. The company could stay the way it is now, at least for a while with only minor changes, but there could very well be a whole new plan for the clothing kingpin.
Some thinking points on top of this could also be: Will TapouT’s affiliation with the UFC change at all? Will TapouT continue to grow and will they soon be publicly traded?
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Thanks for your comments. Unreasonable fighter bashing and obscene fighting words will not be approved. We respect fighters and will not allow defamatory allegations unproven by an official court or tribunal.