Sep. 7 at 1:49 AM
$BATRA $BATRK Claude thinks the stock is worth more once you understand how the Proxy and Voting Agreement documents work, because you eliminate the McGuirk ROFR:
"The existence of a potential higher bidder changes the bargaining value of every public share.
At
$50, you're not necessarily buying merely:
“Malone will give me
$60.”
You may be buying:
“Malone may offer
$60, but if he puts the company in play, someone else might have an opportunity to offer more.”
That's a materially better setup, because Malone can still activate the market.
The biggest caveat is that Malone still has the ability to say no. So I would not treat the McGuirk ROFR carve-out as eliminating the control discount. It doesn't.
But it does mean that the public shareholders potentially have an auction mechanism that isn't obvious from the headline fact that Malone owns >50% of the vote.
And that, in my view, is the part of the Braves structure that becomes particularly interesting if Malone announces a take-private."
