Money Stuff: The Podcast American Dream: EDR, BIS, PILOT
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Mar 14, 2025 Dive into the intriguing world of appraisal arbitrage and the battle over private credit liquidity. Discover the challenges facing the American Dream Mall, from tax issues to unique attractions. The discussion also touches on a surprising partnership in the entertainment industry and the impact of private equity on stock values. Plus, hear about indoor skiing adventures in New Jersey and how businesses navigate the rising tide of cyber threats. Engaging anecdotes and sharp insights make for a captivating listen!
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Endeavor's Complicated Ownership
- Endeavor, a talent and media company, owns a majority of TKO, a publicly traded fighting company.
- Silver Lake, which owns 70% of Endeavor, wants to take Endeavor private, but other shareholders are demanding a higher price due to TKO's increased value.
Appraisal Cases in Delaware
- Appraisal cases in Delaware have become harder to win since 2017 due to a shift in judicial emphasis.
- Judges now prioritize objective market indicators over individual arguments about a company's worth, making this case unusual.
Appraisal Rights vs. Dealmaking
- Silver Lake made a good deal by agreeing to a price before TKO's value increased, but that doesn't negate the shareholders' right to appraisal.
- Appraisal entitles shareholders to the fair value of the company at the time of the merger's closing, regardless of prior agreements.