George Soros Buys Digital River Convertible Debt – ValueWalk Premium

George Soros Buys Digital River Convertible Debt

In a Securities and Exchange Commission S-4  regulatory filing dated August 17, billionaire investor George Soros has increased his holdings to 10 percent in Digital River, Inc. (NASDAQ:DRIV), via his investment management firm, Soros Fund Management LLC.

George Soros Buys Digital River Convertible Debt

This comes after the money man previously took a 7.98 percent stake in the company back on March 29. The 13-G filing showed that the Soros Fund Management bought 3,084,460 Digital River, Inc. (NASDAQ:DRIV) shares of Digital River 2.00% convertible bonds due November 1, 2030. The filling also shows that Soros owns over 10% of the eCommerce provider website.

His most recent transaction mirrors the one from earlier this year, and after Soros’ filing on Friday, the stock closed at $16.31. It is currently down 0.73% to $16.25.

From the company’s second-quarter earnings announcement on July 31, Digital River, Inc. (NASDAQ:DRIV) saw a 31 percent earnings decline, after a tax benefit increased the company’s previous year results. Revenue also fell slightly, missing estimates.

Digital River cut its expectations for 2012, citing weak personal computer sales and economic uncertainty. The company now estimates that its full-year earnings will come in between 96 cents and $1.08 a share, with revenues of $378 million to $390 million. Back in February, it had forecast earnings between $1.20 and $1.28 a share and revenue between $402 million and $409 million.

On July 31, the market reacted with shares tanking 15 percent to $15.21 in after-hours trading.

Manchester United Investment

Last week’s Digital River, Inc. (NASDAQ:DRIV) transaction by Soros follows a regulatory filing on Tuesday that disclosed his $25 billion Soros Fund Management LLC firm purchased 7.85 percent of the Class A shares in Manchester United PLC (NYSE:MANU), the English soccer club. This comes out to a $44 million investment, for more than 3.1 million Manchester United PLC (NYSE:MANU) shares.

The club had its initial public offering on Aug. 9 and raised $233.3 million in its U.S. offering at $14 per share, reported Bloomberg. With his investment, Soros really doesn’t have voting power and it does not come with a dividend.

Manchester United PLC (NYSE:MANU) has won a record 19 championships and is considered the most valuable sports team, with its $2.23 billion market valuation, but it hasn’t fared as well as in the public market. Its shares have fallen 6.57 percent since the IPO.


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