Berkshire Hathaway’s wholly-owned Russell Athletic is looking to become the leader in smart basketball technology, and the deal looks even smarter.
What’s a smart basketball?
It’s a basketball with a microchip in it that communicates with your smartphone.
Developed by InfoMotion Sports Technologies Inc., the smart basketball enables the player or coach to capture a wide variety of data, including dribble speed and intensity, shooting arc, shot backspin, and shot release speed.
It doesn’t take a genius that this makes for a very smart product.
An Even Smarter Deal
As good as the product looks to be the deal looks even better.
Due to InfoMotion Sports Technologies Inc.’s March 1 bankruptcy, Russell Athletic is hoping to grab the technology out of bankruptcy for only $1.5 million.
It’s the perfect product for Russell Athletic, which owns sports equipment maker Spaulding, and itself is a division of Berkshire’s Fruit of the Loom, Inc. Russell Athletic (formerly Russell Corporation) was acquired by Berkshire Hathaway in 2006 for roughly $598 million.
It’s clearly an exciting technology, and for every steal on the court that comes from the 94Fifty Smart Sensor Basketball, Berkshire’s hoping it rings up profits due to a steal in the U.S. Bankruptcy Court.
The offer is awaiting the judge’s approval.
© 2016 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.