Categories: OLD Media Moves

Burkle makes quick profit by buying into Market News parent

Roddy Boyd of The New York Post notes that billionaire Ron Burkle made a quick $50 million with his investment in Xinhua Finance Media, the parent company of business news service Market News International, based in New York.

Boyd wrote, “According to a filing yesterday from with the Securities and Exchange Commission, Burkle’s Yucaipa Cos. paid $3 per share, or $25.7 million, for slightly more than 8.57 million shares.

“On Sept. 26, when the deal was announced, Xinhua’s stock closed at $8.78, instantly raising Yucaipa Cos.’ stake by $50 million.

“The disclosure was vague as to the reasoning behind Yucaipa’s move, noting only that the ‘shares are undervalued by the market at the present time.’

“Spokesmen for Xinhua and Yucaipa did not reply to e-mails seeking comment.”

Read more here. Market News specializes in covering the bond market and the economies around the world.

Chris Roush

Chris Roush was the dean of the School of Communications at Quinnipiac University in Hamden, Connecticut. He was previously Walter E. Hussman Sr. Distinguished Professor in business journalism at UNC-Chapel Hill. He is a former business journalist for Bloomberg News, Businessweek, The Atlanta Journal-Constitution, The Tampa Tribune and the Sarasota Herald-Tribune. He is the author of the leading business reporting textbook "Show me the Money: Writing Business and Economics Stories for Mass Communication" and "Thinking Things Over," a biography of former Wall Street Journal editor Vermont Royster.