Companies are bought and sold everyday. Transactions worth billions takes place. Money is transferred from one account to another as multinational companies do business. But did you know some of these deals came in really cheap? Yes, you read it right. Change in your pocket could be enough to buy one. For example, a box of Homegrown Mac & Cheese might cost you $158 but when capitalist Mike Luckwell bought Reader's Digest in 2014, he paid just £1. Better Capital, the company that created Bob the Builder sold it after investments worth 20 million pounds, did not bear any fruits.
Well, literature isn’t the only field to get its value so low, Football clubs are on the list too. Currently, Chelsea football club is owned by one of the richest people in Europe. But, unlike Manchester United or Real Madrid, the Blues were not always rich. In 1982, the pensioners were £1.5 million in debts and on the verge of getting evicted from Stamford Bridge. It was hotelier Ken Bates who stepped in and bought the club for £1, to be exact. Bates also took the debts and ran the club successfully till 2003 after which he sold it to Roman Abrahamovich for £140 million.
Well, that’s not all. History says Rangers FC also had a similar case. Sir David Murray sold his 85.3% stake in Scottish football club Rangers to Craig Whyte for a mere £1. Yes, that’s absolutely true. Whyte was initially supposed to pay a sum of £5 million but when a tax liability hit the club, Whyte went back to the negotiation table and came out with a deal of £1. Now, thats what you call marketing.
Wolverhampton Wanderers FC also known as Wolves is a football club in the EFL Championships. It was back in 2007 that Sir Jack Hayward decided to "gift" Wolverhampton Wanderers to businessman Steve Morgan for £10. Hayward had bought the club in 1990 at a price of 2 million pounds. But unlike others, Sir Jack wanted to hand over the regime to someone who could bring a new life to the dying club. Well, he wasn’t wrong. Currently, the club is valued at 50 million pounds.
It looks like football suffered a lot. But wait. Don’t judge too soon. They say Formula 1 is one of the world’s richest sports. But when Renault bought 6,744,444 shares from Whiterock Alliance Ltd, they bought, along with it, the Lotus Formula One Company for £1. The company is now worth £79.2 million.
Have you heard about Tata Steel Long Products? It’s a Europe based venture of Tata Steel. The problem with this company was that it was constantly making losses. Thus, Tata Steel decided to sell it to Greybull Capital, a private equity firm for £1 in May this year. Greybull is known as a turnaround specialist.
Lehman Brothers were known as one the largest investment banks in the world. When it filed for bankruptcy in 2008, it was considered to have played a major role in the economic crisis of 2008. Nomura holdings of Japan stepped in and bought the company for merely 2 pounds.
Well, it seems big companies are not so big in terms of Value. Keep your eyes open and you might just buy one with whatever change you have in your wallet.