Arena Group Holdings is experiencing a significant boost in its stock price following the acquisition of a majority stake by the founder of the popular caffeine beverage brand, 5-Hour Energy.
In premarket trading, the stock has surged by 18% to reach $4. However, it’s worth noting that shares had experienced a 68% decline year-to-date prior to this development.
In an announcement made after the market closed on Monday, the publisher of Sports Illustrated and Men’s Journal revealed that Manoj Bhargava, who also owns TV news stations, has made a $50 million investment to secure approximately a 65% stake in Arena Group.
As part of this deal, Arena Group will benefit from a five-year guaranteed advertising commitment of about $60 million. This commitment comes from a consortium of consumer brands that are also owned by Simplify Inventions, one of Bhargava’s companies.
According to a report by The Wall Street Journal, Arena Group will now oversee various media properties owned by Bhargava. These properties include 24-hour news TV channels NEWSnet and Sports News Highlights, as well as notable media brands Driven and TravelHost.