TL;DR: Crypto mogul Brock Pierce is attempting to gain control over the company that publishes Sports Illustrated, alleging he was hindered from selling a significant stake. This comes after his investment firm became the second-largest shareholder of The Arena Group. The stock’s value has since plummeted, leading to a lawsuit.
Brock Pierce’s Rise and Ambitions
From starring as a child actor in the “Mighty Ducks” franchise to amassing a bitcoin fortune reportedly surpassing $1 billion, Brock Pierce has made significant waves in both the entertainment and crypto industries. His latest venture? Aiming to take control of The Arena Group, the company behind renowned publications like Sports Illustrated, Men’s Journal, and TheStreet.
Warlock Partners’ Stake in The Arena Group
Between 2020 and 2021, Pierce’s investment firm, Warlock Partners, acquired shares of The Arena Group at an average price of around $10 a share. This move positioned Warlock as Arena’s second-largest shareholder. However, when Pierce sought to sell his shares as their value rose above $14, he alleges that he was obstructed by Arena and its CEO, Ross Levinsohn.
The Allegations and Legal Battle
Pierce’s complaint suggests a deliberate effort by Arena and Levinsohn to delay and mislead, preventing Warlock from exercising its rights as a stockholder. This alleged interference resulted in significant trading losses for Warlock, with the suit claiming damages in the tens of millions.
Interestingly, while Warlock faced challenges in selling its shares, Levinsohn reportedly sold 82,861 shares at $7.08 each, netting over $586,000. This move, combined with Warlock’s inability to sell, is said to have artificially bolstered Arena’s stock price.
Arena’s Response
Arena representatives have countered Pierce’s claims, highlighting errors in the complaint, particularly regarding Levinsohn’s alleged share sales. They maintain that Levinsohn has not sold any company shares since joining in 2019.
The Implications for Sports Illustrated and Beyond
A favorable ruling for Pierce could see him gaining control of not just Sports Illustrated but also Arena’s other publications. This potential shift in power dynamics comes at a time when Levinsohn had agreed to sell a majority stake in the company to 5-Hour Energy founder, Manoj Bhargava. The outcome of this lawsuit could significantly impact this merger, especially if certain liabilities were not disclosed.
Brock Pierce: A Force in the Crypto World
Beyond this legal battle, Pierce’s influence in the crypto realm is undeniable. Having raised over $5 billion for companies he’s founded, he holds significant positions in organizations like the Bitcoin Foundation, EOS Alliance, and Block.one. His ventures also extend to pioneering efforts like Mastercoin, the first ICO, and Lighthouse NFT Smart Gallery, the inaugural physical NFT smart gallery.
In 2020, Pierce even made a bid for the U.S. presidency as an Independent, securing just under 50,000 votes.
Closing Thoughts
In a world where traditional finance and emerging digital assets continually intersect, this lawsuit underscores the evolving dynamics of power, influence, and wealth. As the lines between old and new money blur, it’s a stark reminder that the future belongs to those who can navigate both realms, championing the principles of free trade, decentralization, and individual sovereignty.
Thank you for reading “Crypto Mogul’s Play for Sports Illustrated’s Publisher“.
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- Crypto mogul wants control of firm that publishes Sports Illustrated
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