Menu
Finance

VENATOR GROUP PULLS OFFER TO ACQUIRE THE SPORTS AUTHORITY

          The Venator Group, "citing adverse stock market
     conditions, cancelled plans to acquire" The Sports Authority
     (TSA), according to Yumiko Ono of the WALL STREET JOURNAL. 
     Venator agreed to acquire TSA in a stock transaction last
     May, and agreed to issue 0.8 share for each of TSA's
     "approximately" 31.6 million shares outstanding.  The deal
     was valued at around $579.6M at the time it was announced,
     but based on yesterday's closing, Venator's bid is now worth
     "about" $218M.  In NYSE trading yesterday, Venator's shares
     fell $.25 to $8.625, while TSA's shares fell almost $.63, or
     11%, to $5.1875.  Analysts told Ono that they "weren't
     surprised the deal fell apart," considering that TSA had the
     right to walk away if Venator's shares traded below $20.50
     for a certain period of time before year end.  A Venator
     spokesperson, asked if the company might try to renegotiate
     a deal with TSA: "We will keep our options open.  That would
     include strategic opportunities as they arise."  TSA Chair &
     CEO Jack Smith said the company "isn't ruling out being
     acquired by others" (WALL STREET JOURNAL, 9/11).  One
     analyst told Richard Wilner of the N.Y. POST that he didn't
     like the deal, as Venator CEO Roger Farah "tried to take two
     ailing companies and by uniting them make them well.  That
     has never worked and will never work" (N.Y. POST, 9/11).
          SMART GART? In Denver, Donald Blount writes that it
     "was a good day for Gart Sports," as second-quarter earnings
     showed "increased sales and revenues," and the Venator/TSA
     deal, a merger "that would have strengthened its chief rival
     fell through" (DENVER POST, 9/11).
 

SBJ Morning Buzzcast: March 25, 2024

NFL meeting preview; MLB's opening week ad effort and remembering Peter Angelos.

Big Get Jay Wright, March Madness is upon us and ESPN locks up CFP

On this week’s pod, our Big Get is CBS Sports college basketball analyst Jay Wright. The NCAA Championship-winning coach shares his insight with SBJ’s Austin Karp on key hoops issues and why being well dressed is an important part of his success. Also on the show, Poynter Institute senior writer Tom Jones shares who he has up and who is down in sports media. Later, SBJ’s Ben Portnoy talks the latest on ESPN’s CFP extension and who CBS, TNT Sports and ESPN need to make deep runs in the men’s and women's NCAA basketball tournaments.

SBJ I Factor: Nana-Yaw Asamoah

SBJ I Factor features an interview with AMB Sports and Entertainment Chief Commercial Office Nana-Yaw Asamoah. Asamoah, who moved over to AMBSE last year after 14 years at the NFL, talks with SBJ’s Ben Fischer about how his role model parents and older sisters pushed him to shrive, how the power of lifelong learning fuels successful people, and why AMBSE was an opportunity he could not pass up. Asamoah is 2021 SBJ Forty Under 40 honoree. SBJ I Factor is a monthly podcast offering interviews with sports executives who have been recipients of one of the magazine’s awards.

Shareable URL copied to clipboard!

https://www.sportsbusinessjournal.com/Daily/Issues/1998/09/11/Finance/VENATOR-GROUP-PULLS-OFFER-TO-ACQUIRE-THE-SPORTS-AUTHORITY.aspx

Sorry, something went wrong with the copy but here is the link for you.

https://www.sportsbusinessjournal.com/Daily/Issues/1998/09/11/Finance/VENATOR-GROUP-PULLS-OFFER-TO-ACQUIRE-THE-SPORTS-AUTHORITY.aspx

CLOSE