From what i remember he lost some fight in UFC or was never able to fight and then got permission to fight on another promotors event and won that fight and then this was his chance to continue in the UFC but Dana was not impressed and decided to cut him.
Maybe a little premature but I guess he thought that if he cant beat Kimbo hes not going to beat the other guys in his weightclass either.
If Kimbo shows to be a really good contender maybe they will regret it but if Kimbo gets defeated in his next performances he will probably also be out of UFC as soon as his contract is over.
Lets hope Kimbo wins a couple of fights and learns and trains hard to improove his cardio and ground game, he sure looked better on the ground in the fight but he was gassed in third round and thats not a good sign, but thats nothig he cant work on right