Billionaire Tom Gores has reached a deal with the owner of the Detroit Pistons to extend an exclusive negotiating period during which the Beverly Hills investor hopes to acquire the professional basketball team.
Despite earlier reports that the two sides had reached a tentative agreement, sources confirmed to the Business Journal that there currently is no deal in place.
The chief executive of investment firm Platinum Equity, Gores has been among the Pistons’ rumored suitors for months and had been in exclusive negotiations since early January with team owner Karen Davidson. Gores flew to Detroit earlier this week, but the parties could not reach a deal before Gores returned to Los Angeles on Friday.
Under the latest agreement, the period of exclusivity will extend for the next two weeks.
Gores, who grew up in Michigan and graduated from Michigan State University, has maintained a number of business holdings in the state.
Since founding Platinum in 1995, Gores has become one of the savviest financiers in Los Angeles, amassing a fortune by investing in distressed companies. In its annual list of the wealthiest people in Los Angeles, the Business Journal estimates Gores’ net worth to be $2.25 billion.
Forbes magazine recently estimated the Pistons value to be $360 million, down 25 percent from the previous year amid a terrible season and a slumping Detroit economy. Under the deal being negotiated, Gores also could acquire the Palace of Auburn Hills arena and DTE Energy Music Theatre.