Billionaires Creatively Barter For Use Of World�s Largest Dome Structure!
Two Los Angeles companies, owned by billionaires Philip Anschutz and Rupert Murdoch, have bartered their services for use of famed dome in England, i.e. �Give us the use of your property and we�ll turn it into an income producer, which we�ll share with you!�
The billion dollar monument, known as The Millennium Dome, is located on the Thames river in London and covers almost 20 acres. It�s billed as the world�s largest single dome structure.
The two famed entrepreneurs have formed a joint venture, the Anschutz Entertainment Group (AEG) and its minority investor Fox Entertainment Group. Their plan is to erect a glitzy entertainment district with the centerpiece being a 23,000-seat arena to be built inside the dome, slated to open in 2007. London�s 2013 Summer Games will showcase Olympic basketball and gymnastics there.
The barter arrangement gives AEG leasing rights to the Dome, at no cost, for 58 years with an option for an additional 55 years. In return the British government will receive a share of the profits from the activities held in the Dome...which has been sitting empty since 2000.
AEG has already signed a $15.5 million-a-year naming rights deal with O2, the British cellular telephone giant. And they�ve sold more than half of the arena�s 96 luxury suites at $200,000 apiece.
Editor�s note: While most people know about Rupert Murdoch�s many accomplishments, less is known about Philip Anschutz, the other out-of-the-box thinker. The 65-year-old longtime Denver resident, made his fortune in oil and gas, railroads, telecommunications and real estate. During the last decade, his holdings have expanded to include sports franchises, Hollywood film-production studios, live entertainment, movie theaters, and daily newspapers.
Internet Giants Utilize Value Of Exchange Transactions
Google�s recent cash-barter deal with AOL revolves around not only the sale of 5% of AOL to Google for $1 billion, but additional advertising value through the �exchanges� each company received in the agreement.
AOL will now be able to sell non-search ads to Google�s advertising partners and earn commissions, and Google will begin to offer traditional Internet ads plus provide favored placement to content from AOL...something it has never done before. Additionally, AOL�s treasure trove of video clips will get placement in Google�s fledgling video service.
(According to SEC documents Google also has the right to demand an IPO by AOL in July 2008. If parent Time Warner doesn�t want to pursue an IPO then, it could buy back Google�s stake based on a fair-market appraisal.)
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