What happened
Shares of Manchester United (NYSE: MANU) were surging again Friday as talk of possible buyouts of the storied English soccer club fueled further gains in the stock.
As of 12:15 p.m. ET, shares were up 15.3%.
So what
Manchester United shares are now up by around 67% this week as initial rumors about a sale gave way to a confirmation from the company, which said Tuesday it was exploring "strategic alternatives" including a potential sale of the club.
On Friday morning, British tabloid The Daily Star reported that Apple (NASDAQ: AAPL) was among the parties exploring a bid for the soccer team. The Star did not cite a source for that assertion, but said that Apple CEO Tim Cook is planning to talk with the banks that are handling the sale for Man U. The Glazer family, which controls Manchester United, is reportedly seeking a price of around $7 billion, which is nearly double the company's current market cap. The website MacRumors later reported that Apple was not seeking to purchase the club, citing a "source with direct knowledge of the situation."
Separately, Saudi Arabia's sports minister said he would "definitely support" private sector bids for Manchester United and Liverpool, another top English soccer club that's on the auction block.
Now what
A buyout by Apple seems like an odd match, but a buyer is likely to emerge for Manchester United as it's one of the top sports assets in the world. The company claims 1.1 billion fans and followers.
In its 10 years as a publicly traded company, the stock has underperformed, and it is unprofitable on an IFRS basis (the international equivalent of GAAP). However, for the right kind of buyer, these teams are prestige assets, and Man U will likely find some interested buyers, though its selling price remains a question mark.
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