Steve Ballmer Wins Bidding War To Purchase Los Angeles Clippers

The Los Angeles Clippers may have found a new owner after billionaire Steve Ballmer won the bid to buy the team from Donald Sterling. INSIDE EDITION has the story.

So where was embattled billionaire Donald Sterling before the big announcement that the Los Angeles Clippers have been sold to former Microsoft boss Steve Ballmer for an astronomical $2 billion? Believe it or not, Donald was photographed out in public with his former mistress, who he had a long affair with him years before he made those racist rants to V. Stiviano.

Her name is Alexandra Castro and she covered herself with a purple scarf and sunglasses while sitting with him at a Los Angeles cafe.

Alexandra took a photo of Donald Sterling in bed that was evidence in a bitter 2003 lawsuit he filed against her in which he called their relationship "purely sex for money."

Now, the new photos of 80-year-old Donald show that he and Alexandra have apparently worked things out. It comes as his wife, Shelly, is reportedly planning to have him declared "mentally incapacitated" so that she can proceed with the sale of the Clippers.

Shelly told Barbara Walters, "He said, 'I don't remember saying that. I don't remember ever saying those things.'"

Walters asked, "What did you think then?"

Shelly replied, "That is when I thought he has dimentia."

His lawyers insist he is not suffering from dementia and will fight to keep his team, saying, "The team cannot be sold without him signing something on the dotted line. As of today, he is not willing to do that."

INSIDE EDITION asked psychiatrist Dr. Gail Saltz about the controversy over Donald Sterling's mental state. She said, "The standard for confidence is at a fairly low level. In other words, we believe in civil rights in this country, so, you have to really be not confident for a judge to decide you cannot make that decision for yourself."

So is it deal or no deal? Steve Ballmer certainly thinks he won the bidding war for the Clippers, saying in a statement: “I love basketball and I intend to do everything in my power to ensure that the Clippers continue to win -- and win big -- in Los Angeles.”

Shelly Sterling added, “I am delighted that we are selling the team to Steve, who will be a terrific owner.”

Basketball legend Magic Johnson tweeted: “Steve Ballmer owning the Clippers is a big win for the city of L.A.”

Darren Rovell of ESPN told INSIDE EDITION, "It is shocking that a transaction of $2 billion could be agreed to in principle and signed, in essentially 24 hours."

Ballmer outbid a group of billionaires led by Oprah Winfrey, who reportedly offered $1.6 billion.

Forbes magazine ranks Ballmer No. 34 on the list of the world's richest people, worth over $20 billion.

He's also a sports fanatic and known for his oversized personality.  He once did a Night at the Roxbury parody with Microsoft founder Bill Gates. He also gave an over-the-top motivational speech to Microsoft employees that has become the stuff of legend.

Hey, who knows?  Maybe he'll make a great addition to the Clippers cheerleaders’ squad.