B Riley Financial (NASDAQ:RILY) Stock Surges After $386M Deal with Oaktree
On Monday, the B Riley Financial (NASDAQ:RILY) stock emerged as one of the notable gainers as it ended the day with gains of 24%. It could be the right time for investors to take a closer look.
The Key Announcement: $386M Deal with Oaktree—A Game-Changing Partnership
The company announced that it had reached an agreement on a deal worth $386 million to sell its Great American business unit to Oaktree Capital. It was also stated in the news release that the transaction was also a demonstration of the fact that there was investor confidence in the potential of the transaction to change the company’s future.
B Riley Financial would get $203 million in cash, and the rest would be paid in preferred units. However, the company would continue to hold on to a 27% stake in Great American NewCo, the newly established holding company.
Oaktree Partnership
It was also revealed that the company decided to partner with Oaktree Capital because of its reputation as one of the world’s best asset managers with a strong track record of success. It was also mentioned that Oaktree held considerable expertise and experience in the area of alternative investments while being known for being a strong capital provider. It remains to be seen if the B Riley Financial stock can continue to add to its gains this morning or not.
CEO Quote
Bryant Riley, Chairman and Co-Chief Executive Officer of B. Riley, said, “I am pleased to be partnering with Oaktree given its stellar track record and reputation as one of the world’s leading asset managers. We believe Oaktree’s scale and expertise in alternative investments and their strength as a capital provider, combined with the Great American Group’s leading position as a provider of asset disposition, financial advisory, and real estate services, will prove complementary as we join forces to deliver financial products and services to better serve our clients.”
Technicals
| +/- EMA(20) | 5.16 (-4.07%) |
| +/- SMA(50) | 6.54 (-24.31%) |
| +/- SMA(200) | 17.86 (-72.28%) |
| 5-Day Perf. | +12.76% |
| 1-Month Perf. | -18.32% |
| 3-Month Perf. | -70.31% |
| 6-Month Perf. | -75.25% |
| YTD Perf. | -75.5% |
| 1-Year Perf. | -86.46% |
| RSI(14) | 43.2 |
| ATR(14) | 0.67 |
| ADX(14) | 14.28 |
| Beta (5Y) | 1.38 |
