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Turner Broadcasting System, Inc. v. McDavid
Citation:
303 Ga. App. 593, 693 S.E.2d 873 (2010)Facts
In October 2002, Appellant, the former owner of the Hawks and Thrashers, with operating rights to Philips Arena (the assets), announced its interest in selling the assets. In November, Appellee expressed interest and began negotiating with Appellant. Over the next ten months, both parties exchanged multiple drafts, Appellant gave Appellee reassurance of the deal, and the board of directors of Appellant’s parent company, Time Warner, approved the sale of assets to Appellee.
However, two board members opposed the deal due to concerns that the assets were undervalued. The day after the board meeting, two board members approached Appellant to purchase the asset for their corporation, Atlanta Spirit LLC. Meanwhile, Appellee continued to exchange drafts with Appellant. Finally, around September 12, 2003, Appellant and Appellee verbally reached a final agreement, and Appellant’s principal negotiator announced that the deal was done and the documents would be ready next week. Yet, later that day, Appellant’s principal negotiator signed an agreement to sell the assets to Atlanta Spirit. On September 15, as Appellee was flying to announce the sale, he was told that Appellant sold the assets to Atlanta Spirit.
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