Dan Och’s Criticism of Rithm’s Acquisition of Sculptor
Dan Och, the billionaire founder of Och-Ziff Capital Management Group, has recently expressed his disapproval of Rithm’s acquisition of Sculptor Capital Management. Och believes that the deal substantially undervalues Sculptor and is not in the best interests of its shareholders.
Background of the Deal
In August 2023, Rithm announced its intention to acquire Sculptor Capital Management, a hedge fund founded by Och in 1994. The deal was valued at $2.2 billion, with Rithm paying $1.9 billion in cash and $300 million in stock. The acquisition was expected to close in the fourth quarter of 2023.
Och’s Criticism of the Deal
Och has been vocal in his criticism of the deal, arguing that it substantially undervalues Sculptor. He believes that the deal does not reflect the true value of the company and is not in the best interests of its shareholders.
Och has also argued that the deal does not take into account the potential for future growth. He believes that Sculptor has the potential to become a much larger and more successful company in the future, and that the current deal does not reflect this potential.
Rithm’s Response to Och’s Criticism
Rithm has responded to Och’s criticism by arguing that the deal is fair and in the best interests of Sculptor’s shareholders. The company has argued that the deal is based on a thorough analysis of the company’s financials and potential for future growth.
Rithm has also argued that the deal is in line with market trends and that it is a good opportunity for Sculptor’s shareholders to realize value from their investment.
Och’s Plans for the Future
Och has stated that he plans to remain involved with Sculptor, even after the acquisition is complete. He has stated that he will continue to be involved in the company’s operations and will remain a shareholder.
Och has also stated that he plans to use his influence to ensure that the company is managed in the best interests of its shareholders. He has stated that he will continue to advocate for the company and its shareholders, and will work to ensure that the company is managed in a way that maximizes value for its shareholders.
The Impact of Och’s Criticism
Och’s criticism of the deal has had an impact on the market. The stock price of Rithm has dropped since the announcement of the deal, and some analysts have expressed concern that the deal may not be in the best interests of Sculptor’s shareholders.
The deal is still expected to close in the fourth quarter of 2023, but Och’s criticism has raised questions about the fairness of the deal and its potential impact on Sculptor’s shareholders.
Conclusion
Dan Och has been vocal in his criticism of Rithm’s acquisition of Sculptor Capital Management. Och believes that the deal substantially undervalues Sculptor and is not in the best interests of its shareholders. Rithm has responded to Och’s criticism by arguing that the deal is fair and in the best interests of Sculptor’s shareholders. Och has stated that he plans to remain involved with Sculptor and will use his influence to ensure that the company is managed in the best interests of its shareholders. The impact of Och’s criticism on the market has raised questions about the fairness of the deal and its potential impact on Sculptor’s shareholders.