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Post Date: April 12, 2020, 5:05 a.m.
Updated on April 12, 2024 at 06:28 a.m.
Sinclair Broadcast Group, the owner of Bally’s regional sports networks that carry the Bally’s name (NASDAQ: SBGI), has sold 7.91 million Bally’s casino shares.
Bally’s filed Form S-3 documents with the Securities and Exchange Commission on Friday. The filing stated that Bally’s registered to sell 7,91 share for SBG Gaming, LLC. SBG Gaming appears in other SEC files. It is part of Sinclair.
Shares of Common Stock offered by this document are registered to the Selling Stockholder’s account. Selling Stockholder receives the net proceeds on the shares. According to Bally’s Regulation Document, we will not receive any portion of proceeds from this sale of the Common Stock.
SBG Gaming filed a SEC report on March 20 that stated the number of shares outstanding at the time of the sale was 40,426,353. This means the amount of the SEC filing corresponding to the SBG Gaming share sale is 16.37%.
Sinclair’s ownership of Bally’s stock
Sinclair agreed to pay a reported $500,000 for its stake in Bally’s at the end of 2020. Over 10 Years, $85 Million The RSNs of the media groups will be branded with its name.
Sinclair received 15% of the equity in Bally’s and the right to acquire another 15% if financial goals were achieved. Sinclair owned a 15% stake in Bally’s at the time that the deal was made. But today, with the closing stock price of $13.41, this would translate to $106 million.
Sinclair has received some compensation, but it’s not much. It overpaid for RSNs, and since then, the network’s financial stability has been a problem.
Sinclair purchased the RSNs for $10.6billion from Walt Disney in 2019, as part of Disney’s effort to sell some assets and gain regulatory approval to acquire 21.The st Century Fox. At that time, Fox Sports networks were worth at least $15 billion.
Sinclair partnered with Bally’s Chairman Soo KimDiamond Sports Group, which is in bankruptcy, was reportedly given $850 million by a private investor. Diamond holds the Bally’s RSNs.
Sinclair divests Bally’s stock at an Interesting Time
Bally’s announced that it was selling Sinclair’s stock about a week after Kim’s Standard General hedge funds. Shares are being sold for $15 for the gaming company — its second takeover bid for the operator in which it’s the largest shareholder in two years.
Bally’s S-3 Form does not disclose the reasons why Sinclair sells its stake, and the company is yet to make a comment about what it plans to do with the proceeds.
In determining the manner, timing and volume of each sale, “the Selling Stockholder” will make independent decisions. Bally’s said in its regulatory document that such sales could be conducted on or through one or several exchanges, or over the counter or other markets at the prices or terms then in effect or at prices that are related to or negotiated with the market price.
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