NEWS
Investment firm could privatize Youbet.com
Posted: Tuesday, October 14, 2008 5:22 PM
by Frank Angst
A public equity investment firm led by current Youbet.com Chief Executive Officer Michael Brodsky has expressed interest in privatizing the advance-deposit-wagering company.
The group, known as New World Opportunity Partners I, has expressed interest in acquiring Youbet.com in a filing with the Securities and Exchange Commission. Based in Woodland Hills, California, Youbet.com is traded on the NASDAQ exchange.
New World Opportunity Partners I said it owns 12.8% of Youbet stock. The other two members of New World are Thomas Muenster and billionaire Jay Pritzker.
In the filing, New World lists the acquisition of all Youbet shares as an option. It notes the option could address, “recent financial industry developments, extreme volatility in the equity markets, stagnant credit markets, increasing costs related to the Issuer’s status as public company, the Issuer’s near-term credit maturity date, and weak economic conditions generally.
Other listed options include an offer to extend credit or an equity investment. The group, which controls 5,302,347 Youbet shares, has not determined its ultimate actions.
Brodsky has served as New World’s managing partner since 2005. He was named Youbet chief executive officer on August 24. Pritzker is on the Youbet board of directors.
Frank Angst is a Thoroughbred Times senior writer
