Steve Ballmer has agreed to purchase the Forum in Inglewood for $400 million in cash from The Madison Square Garden Company.
The Forum was recently renovated to serve as a music venue and it will remain in tact.
The move will clear the way for Ballmer to build a basketball arena in Inglewood.
"This is an unprecedented time, but we believe in our collective future," Ballmer said in the news release. "We are committed to our investment in the City of Inglewood, which will be good for the community, the Clippers, and our fans."
The Clippers say owning both the Forum and a new arena will help coordinate and alleviate traffic congestion.