Anthony Scaramucci’s deal to sell his
fund-of-hedge funds firm SkyBridge Capital to
China’s HNA Capital is officially off. The two
firms announced Monday night that "is not in their business
interests to pursue the transaction," originally announced in
January 2017, citing the "significant time" that has passed
since the transaction was first announced "and the uncertain
timing of the approval process going forward."
The Wall Street Journal reported that the two firms
were unwilling to meet the deal-closing requirements of the
Committee on Foreign Investment in the U.S. (CFIUS). Scaramucci
was reportedly expecting to personally receive roughly $100
million from the deal after SkyBridge on January 17, 2017
signed a deal to sell a majority stake to RON Transatlantic and
HNA Capital. SkyBridge is also known for its SkyBridge
Alternatives conference held annually in May in Las Vegas. This
year’s event was cancelled earlier this year.
Scaramucci put the company up for sale when he
thought he was going to get a job in the Trump Administration.
He did spend 10 whirlwind days as communications director
before he was fired following a profanity-laced, on-the-record
interview with a reporter. In the press release, SkyBridge and
HNA said they plan to explore a possible marketing and
distribution arrangement of SkyBridge’s offerings
in China. SkyBridge will continue to be led by its current
senior management team, headed by Ray Nolte and Troy Gayeski.
Scaramucci will return as co-managing partner to focus on
strategic planning and marketing efforts.
Wall Street analysts are bullish on streaming music
company Spotify Technology, which went public last month. The
stock had closed at $149.60, up 13.33 percent in its first day
of trading after an unusual initial public offering whereby the
shares of the Swedish company simply started to trade in what
is called a direct listing.
On Monday, UBS set a $200 price target on the
stock, asserting that the company is "poised for category
leadership." It added that management execution "could widen
that moat" over the next three to five years. "With an
increasing ubiquity of smart devices globally, we see the
adoption/monetization of streaming media as a key secular
growth theme for investors," it added.
Morgan Stanley, one of Spotify’s lead
bankers, set a price target of $190 in its report. "We believe
we are in the early stages of a music renaissance in consumer
spending, led by subscription streaming and Spotify," it stated
in its report.
Chase Coleman’s Tiger Global
Management owns more than 12.8 million shares, or 7.2 percent
of Spotify’s total ordinary shares, according to a
regulatory filing dated April 3. Of that sum, 1.255 million
shares were registered. The shares are majority owned by Tiger
Global Private Investment Partners IX, L.P. (PIP IX). In
January, we reported that D.E. Shaw sold its stake of 12,000
shares in Spotify. Shares of Spotify rose more than 1 percent,
to close at $161.67.
Elliott Management Corp. is considering expanding
into collateralized loan obligations (CLOs), according to
Bloomberg. The firm has hired Brian McNamara, who formerly
worked at GoldenTree Asset Management, to serve as a consultant
as the firm tries to develop this business, according to the
ValueAct Capital’s Jeffrey Ubben has
resigned from the board of directors of Twenty-First Century
Fox, according to regulatory filings. He did not offer a
reason. In a regulatory filing, the media giant said the
resignation "is not due to any disagreement with the company on
any matter relating to the company’s operations,
policies or practices." As a result of Ubben’s
resignation, the size of the board has been reduced to 12
directors. The activist hedge fund firm currently owns 53.3
million shares of the company, or 6.7 percent of the total
Shares of Och-Ziff Capital Management fell nearly 5
percent on Monday, to close at a new all-time low of just $1.95