Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

Blackstone Group Inc (BX) said last week that it would take a majority stake in MagicLab, the parent company of dating applications “Badoo” and “Bumble”.

Blackstone valued MagicLab at approximately $3 billion.

Blackstone shares closed higher for a second consecutive trading session in New York on Monday. It has also been the sharpest daily surge since November 1st. The stock went up 0.74% ($0.38) to $51.91, after touching an intraday high at $52.04, or a price level not seen since November 7th ($52.94).

Shares of The Blackstone Group LP have risen 74.14% so far during the current year, following a 6.90% drop in 2018.

After the deal closes, MagicLab founder and Chief Executive Officer Andrey Andreev is expected to sell his stake to Blackstone Group. Andreev will also be replaced as CEO by Whitney Wolfe Herd, who currently serves as CEO for “Bumble”.

Citi Global Capital Markets will advise MagicLab on the financial aspects of the deal, while Baker McKenzie is the legal adviser to the firm’s majority shareholders. At the same time, Blackstone’s legal adviser on the deal is Simpson Thacher & Bartlett LLP.

Analyst stock price forecast and recommendation

According to CNN Money, the 13 analysts, offering 12-month forecasts regarding The Blackstone Group LP’s stock price, have a median target of $54.00, with a high estimate of $60.00 and a low estimate of $47.00. The median estimate represents a 4.03% upside compared to the closing price of $51.91 on November 11th.

The same media also reported that at least 11 out of 17 surveyed investment analysts had rated The Blackstone Group LP’s stock as “Buy”, while 6 – as “Hold”.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News