Atlanta Braves tracking toward a private sale
The bull case for Atlanta Braves Holdings is that the asset-backed stock is trading at a steep discount to its private market value and is controlled by a rational owner looking to simplify his empire.
The argument
The guest argued that John Malone (controlling shareholder) is simplifying his corporate structures. The stock trades around $42 but is estimated to be worth closer to $60 based on the value of the MLB franchise and the surrounding 'Battery' real estate development in a potential sale.
The thesis, stress-tested
✓ What validates it
- ✓A formal announcement of a transaction to take the franchise private or sell to a new ownership group
- ✓Appreciation in comparable MLB franchise valuations
▸ Risks discussed
- ▸Complex tracking stock/holding company structures can trade at persistent discounts
- ▸Illiquidity or lack of near-term catalysts if a sale is delayed
Hear it yourself
"It well, it's it was spun out, so now it's an asset backed stock. Unlike the Dolan's, you kinda have a rational owner of Atlanta Braves. Stock's selling about 42. We think it's worth about 60 or so in a sale based on a small premium to Forbes. Malone is still the owner? He's the controlling shareholder."
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