Hedge fund manager David Einhorn’s Greenlight Capital recently took a 5.2% stake in Ticketmaster, according to regulatory filings.
Einhorn is best known for his infamous short positions against Allied Capital and Lehman Brothers, but his investment in Ticketmaster seems to indicate a vote of confidence in the stock, says Alan Gould, a senior analyst at Natixis Bleichroeder who follows Live Nation.
Indeed, most of Einhorn’s positions are long and include investments in companies like Microsoft and Target. “Einhorn is a very sharp, value-oriented manager,” Gould notes, suggesting that Einhorn chose to pick up his nearly 3 million shares because he thinks Ticketmaster’s stock is at a good price. Currently trading at around $4 a share, TKTM has likely been bogged down by concerns that its proposed merger with Live Nation wouldn’t be approved for antitrust reasons.
Widely considered a savvy investor on Wall Street, Einhorn’s position could bolster Ticketmaster’s stock price, giving the ticketing company an unlikely ally in this contentious period.
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