Finance Knuggets

May 10, 2024

I recently heard about a major media rights deal in the National Basketball Association, valued at over $75 billion. This deal is set to have a significant impact on the U.S. sports media landscape and could lead to increased prices for both majority and minority stakes in NBA teams. There was also news about CVC Capital Partners selling East Africa tea gardens, including the controversial Kericho site in Kenya, to Sri Lanka’s Browns Group. As part of the deal, a 15% stake in the business will be offered to local community members through a public co-op.

In the private equity space, Blackstone is expected to acquire Hipgnosis Songs Fund for nearly $1.6 billion, and Charlesbank Capital Partners has acquired Perspective Financial, a British financial advisory firm. Additionally, there were reports of John Wood Group rejecting a £1.4 billion takeover approach from family-owned Sidara. In fundraising news, 97212 Ventures, a New York firm focused on Israeli founders, raised $20 million for its debut fund, and Avenue Capital Group raised over $1 billion for its fifth Europe special situations fund. Finally, CEO confidence rose slightly in April, with only 35% of CEOs expecting a recession within the next 12-18 months, down from 72% at the end of 2023.

I also came across a news report about Bed Bath & Beyond Inc. and its stock sales leading up to its bankruptcy filing. The company sold a significant amount of stock in the first few months of 2023, with the value per share dropping from $3.35 to $0.30, resulting in the stock becoming worthless after the bankruptcy filing. The report highlighted the company’s actions as being cynical, raising money from retail investors to hand directly to creditors, despite knowing that the stock would likely be worthless.

Moreover, there is a discussion in the news about the various options available to companies in private markets, such as customizing trading hours, choosing who can buy their stock, and setting voting rights for shareholders. The article also touches on the challenges faced by private equity shops and startups, as well as the potential for alternative exit strategies. Additionally, there is a report on Bridgewater Associates’ new CEO, Nir Bar Dea, who has made significant changes at the hedge fund in an effort to improve investment performance and mark a break from founder Ray Dalio. The news also covers various happenings in the financial world, including Binance’s pledge to thwart suspicious trading, the surge in corporate debt issuance, the return of buybacks by corporate America, and other notable events in the industry.

Stay Well!