Online marketplace Poshmark confidentially files for IPO

MarketWatch - 2d

Poshmark Inc. said late Friday it confidentially submitted to securities regulators a draft registration statement for its initial public offering. The number of shares to be offered and the price range are yet to be determined, the Redwood City, Calif., company said in a press release. The IPO is expected to start after the Securities and Exchange Commission completes its review process, subject to market conditions. Poshmark is an online marketplace for new and used clothing and other fashion items.


Trump has picked Amy Coney Barrett as Supreme Court nominee: report

MarketWatch - 2d

President Donald Trump has selected Amy Coney Barrett to succeed the late liberal Supreme Court Justice Ruth Bader Ginsburg, said a New York Times report on Friday citing unnamed sources close to the process. But the report also said aides have cautioned that Trump sometimes upends his own plans. CNN in a separate report said Trump intends to choose Barrett. The president is slated to announce his pick at 5 p.m. Eastern Time Saturday.


Dow industrials, S&P 500 rally mightily on Friday but fail to avoid longest weekly losing streak in over a year

MarketWatch - 2d

U.S. stocks finished a weekly trading stretch, marked by wild swings, on a higher note, shrugging off uncertainty about additional coronavirus stimulus from Washington, rising cases of coronavirus and a stall-out in some components of economic data. Investors still turned to the perceived safety of technology stocks, helping the Nasdaq Composite avoid a fourth consecutive weekly slide, but the S&P 500 and the Dow Jones Industrial Average booked their fourth weekly drop, matching their longest such losing skid since Aug. 23, 2019, FactSet data show. The Dow finished the session up by about 360 points, or 1.3%, at about 27,174, while the S&P 500 closed 1.6% higher at around 3,298, on a preliminary basis. For the week, the Dow booked a 1.8% decline while the S&P 500 lost 0.6% over the five-session stretch. The Nasdaq Composite, however, closed up 2.3% on the session to reach 10,913, on a preliminary basis. That helped the tech-laden benchmark record a 1.1% weekly gain erasing a fall of that magnitude, from which it started Friday trade.


Friday's stock market rally in final hour of trade helping Nasdaq erase over 1% weekly skid

MarketWatch - 2d

U.S. stocks on Friday were ending a choppy week on a high note, which was helping the technology-laden Nasdaq Composite Index wipe out a more than 1% weekly drop in the final hour of trading. The Nasdaq Composite Index on Friday afternoon was up 2.4% on the day, which was putting it in position to notch a weekly gain of about 1.2%, an accomplishment for the benchmark which had begun the session in a 1.1% hole. The moves on the day highlight a volatile period for stocks as investors fret about the lack of further stimulus from Washington to help out-of-work Americans during the COVID-19 crisis, viewed as a key pillar to helping equities take another leg higher from the financial and public health crisis that reached a peak for the stock market in March. Rising cases of coronavirus and a looming 2020 presidential election also contributed to the turbulence. The Dow Jones Industrial Average, meanwhile, was up more than 400 points on Friday at 27,227, while the S&P 500 index was up 1.8% at 3,304. Although the Nasdaq looked likely to avoid a fourth straight weekly decline, the S&P 500 was still on track for a weekly declined of 0.5% and the Dow was set for a 1.6% weekly skid, despite the late-session advance.


SPAC Yellowstone Acquisition files to go public, to raise $200 million

MarketWatch - 2d

Blank check company Yellowstone Acquisition Co. has filed to go public to raise $200 million. The Nebraska-based special purpose acquisition company (SPAC) said it is offering 20 million units at $10 per unit. Each unit will consist of one share of Class A common stock, and one-half of one warrant; a whole warrant entitles the holder to buy one Class A share for $11.50 each. The Class A shares are expected to list on the Nasdaq under the ticker symbol "YSU." Yellowstone's sponsor is a subsidiary of Boston Omaha Corp. . Wells Fargo Securities is the sole bookrunner. SPACs raise money through an IPO, then place it in a trust while the sponsor searches for a business or businesses to acquire, usually within a two-year period. The companies then complete what is in effect a reverse merger, as the combined company takes on the name of the acquiree. Yellowstone is looking to go public during a big year for SPACs, and a good year for IPOs, with the Renaissance IPO ETF rallying 65.2% year to date while the S&P 500 is gaining 2.3%.


Oil futures end lower for the week

MarketWatch - 2d

Oil futures were slightly lower on Friday, posting a loss for the week as some signs of tighter supplies, including a second weekly decline in U.S. crude inventories, failed to offset pressure from expectations of weaker energy demand on the back of the rise in COVID-19 cases. "The oil market is sensitive to the perceived health of the world economy and there were already signs that the rebound was cooling before the recent jump in new cases of coronavirus in Europe," said David Madden, market analyst at CMC Markets UK. Meanwhile, data from Baker Hughes Friday showed that the number of active U.S. oil-drilling rigs climbed by 4 this week to 183, marking the first increase in three weeks. November West Texas Intermediate crude fell 6 cents, or nearly 0.2%, to settle at $40.25 a barrel on the New York Mercantile Exchange. For the week, prices for the most-active contract lost 2.6%, according to Dow Jones Market Data.


Gold futures lose nearly 5% for the week

MarketWatch - 2d

Gold futures declined Friday to post a loss of nearly 5% for the week-the largest weekly percentage loss since mid-March. Analysts attributed losses for the precious metal to strength in the U.S. dollar this week. The longer-term outlook remains positive for gold, however, "as the global economic recovery will warrant more stimulus as the Northern Hemisphere battles the winter wave of the virus," said Edward Moya, senior market analyst at Oanda. "Gold will likely attract buyers from here on out as investors start scaling back their bullish bets." December gold fell $10.60, or 0.6%, to settle at $1,866.30 an ounce. For the week, prices based on the most-active contract lost 4.9%, according to FactSet data.


Neiman Marcus emerges from bankruptcy

MarketWatch - 2d

Luxury retailer Neiman Marcus Holdings Co. Inc. said Friday that it has emerged from bankruptcy, which "full support" of its creditors and new equity shareholders. The new owners, which include PIMCO, Davison Kempner Capital Management and Sixth Street, are funding a $750 million exit financing package. "With the successful implementation of our restructuring, Neiman Marcus and Bergdorf Goodman will continue to be the preeminent luxury shopping destinations for years to come," said Neiman Chief Executive Geoffroy van Raemdonck. "While the unprecedented business disruption caused by COVID-19 has presented many challenges, it has also given us the opportunity to reimagine our platform and improve our business." Neiman had filed for bankruptcy in May, and was the first department store chain to succumb to the COVID-19 pandemic. Among others that went bankrupt are J.C. Penney and Lord & Taylor.


Honeywell raises dividend by 3.3%, starting with its fourth-quarter payout

MarketWatch - 2d

Honeywell International Inc. said Friday it was raising its annual dividend by 3.3%, to $3.72 a share from $3.60. The new dividend rate will be effective in the fourth quarter, when it a quarterly dividend of 93 cents will be payable on Dec. 4 to shareholders of record on Nov. 13. Based on the software industrial company's current stock price -- it is up 1.2% at $160.69 in afternoon trading -- the new annual dividend rate implies a dividend yield of 2.32%, which compares with the implied yield for the S&P 500 of 1.73%. "Honeywell remains focused on providing value to our shareowners despite the current challenging economic environment, and today we announced an increase to our dividend for the 11th consecutive year," said Chief Executive Darius Adamczyk. The stock has rallied 12.8% over the past three months, while the Dow Jones Industrial Average has gained 4.7%. (This replaces a previous report that incorrectly reported the record date for shareholders to be paid the dividend. It has been corrected.)


Cruise stocks surge, lead the S&P 500's gainers after Barclays turns bullish

MarketWatch - 2d

Cruise operator stocks surged Friday, to pace the S&P 500's gainers, after Barclays analysts turned bullish on the group, saying the industry has reached a post-COVID-19 inflection point. Shares of Norwegian Cruise Line Holdings Ltd. shot up 11.5% to be the top S&P 500 gainer, Carnival Corp. was second with an 8.9% rally and Royal Caribbean Group's stock was third with 7.4% gain. Barclays analysts led by Felicia Hendrix raised the the ratings of all three stocks to overweight from equal weight. Hendrix said the industry could get a nice boost within the next few days when the Centers for Disease Control and Prevention (CDC) addresses its order to suspend cruises through Sept. 30. Even if the CDC extends the order, Hendrix said she thinks the worst is behind the sector. "While we see a high likelihood that the CDC will extend the date again (likely into 4Q20), we expect comments from the agency to be positive and potentially signal a near-term return to cruise, which could be a catalyst for the shares," Hendrix wrote in a note to clients. Year to date, shares of Norwegian have plunged 72.1%, Carnival have tumbled 70.6% and Royal have dropped 51.8%, while the S&P 500 has gained 1.3%.


Timber, materials ETFs higher on paper demand

MarketWatch - 2d

Paper and packaging stocks jumped Friday, buoying exchange-traded funds that focus on timber and materials. WestRock Company gained nearly 7% midday, making it one of the biggest movers in the S&P 500 , with International Paper Company , up 5%, and Packaging Corporation of America , up 4.1%, not far behind. The Invesco MSCI Global Timber ETF gained more than 1% midday, while the iShares Global Timber & Forestry ETF was up 0.5%. The broad sector ETF that covers the industry, the SPDR Select Materials fund is the best performer of the 11 sector SPDRs over the past month, as investors have rotated away from pricey tech and consumer names toward stocks that are better value, and which stand to benefit from the new business cycle.


Graybug Vision's stock open up 19%, then pares some gains

MarketWatch - 2d

Graybug Vision Inc.'s stock started its public life with a rally, as it opened 18.8% above its initial public offering price. The first trade was at $19.00 at 12:15 p.m. Eastern for 293,572 shares, above the upsized IPO price of $16 a share. At the IPO price, the California-based biopharmaceutical company raised $90 million and was valued at $306.5 million. The stock has pared some gains since it opened, to be trading 7.5% above its IPO price. The company went public at a time that the Renaissance IPO ETF has rallied 63.0% year to date, while the S&P 500 has edged up 1.1%.


PMV Pharmaceutical's stock nearly doubles in its debut

MarketWatch - 2d

PMV Pharmaceuticals Inc.'s stock debuted with a bang Friday, as the the stock opened at nearly double the initial public offering price. The first trade was at $35.00 at 12:09 p.m. Eastern for 346,817 shares, or 94.4% above the IPO price of $18 a share. The New Jersey-based oncology company raised $211.8 million in the IPO, and was valued at $774 million at the IPO price. The stock has mostly held its gains since the open, to be trading 93.6% above its IPO price The company went public at a time that the Renaissance IPO ETF has rallied 23.3% over the past three months, while the S&P 500 has gained 5.8%.


J&J: most Phase 1/2a participants in COVID-19 vaccine developed neutralizing antibodies

MarketWatch - 2d

Shares of Johnson & Johnson were up 0.1% in trading on Friday after data from the Phase 1/2a clinical trial for its COVID-19 vaccine candidate was published as a preprint. A preprint is not a peer-reviewed study, long considered the gold standard in medical research; however, some drugmakers developing vaccines and treatments are publishing clinical-trial findings on preprint servers during the coronavirus pandemic. The study evaluated a one-dose and two-dose regimen in two cohorts of participants: healthy adults between the ages of 18 and 55 years old and those between the ages of 65 and 75 years old. Interim results reported by J&J in the preprint indicate that 99% of the adult participants who received the vaccine developed neutralizing antibody titers, and all of the 65-and-older participants did, as well. Both groups had binding and neutralizing antibody levels that were in "the same range" as people who have recovered from COVID-19 infections. "Based on similar immunogenicity of both dose levels, we have selected the lower dose for further clinical evaluation," the researchers said. Earlier this week J&J had announced that it had initiated a Phase 3 trial in the U.S. utilizing a single dose. J&J's stock is 0.7% so far this year, while the S&P 500 is up 0.5%.


Amesite's stock opens below IPO price, than rallies above it

MarketWatch - 2d

Amesite Inc.'s stock stumbled out of the gate, as it opened 1% below its initial public offering price, but then righted itself to trade higher. The first trade was at $4.95 at 11:39 a.m. Eastern for 162,143 shares, below the IPO price of $5. The stock was last trading 10% above its IPO price. The company's IPO priced at the midpoint of the expected range of $4.50 to $5.50. The company sold 3 million shares to raise $15 million. With 20.4 million shares outstanding after the IPO, the artificial-intelligence driven platform and course designer was valued at $102.1 million. Laidlaw & Co. was the sole book-running manager. The company went public at a time that the Renaissance IPO ETF has rallied 23.5% over the past three months, while the S&P 500 has gained 5.6%.


Stocks open mostly lower on rising case counts, stimulus stalemate

MarketWatch - 2d

U.S. stocks opened mostly lower Friday morning as investors hunted for a positive catalyst amid an array of headwinds. The Dow Jones Industrial Average lost about 135 points or 0.5% to open near 26,680, while the S&P 500 slipped 10 points, 0.3%, opening near 3,237. The Nasdaq Composite was about 10 points higher, near 10,680, a gain of 0.1%. Stock benchmarks are on track to mark a fourth straight week of losses as concerns grow over the U.S. election, the lack of additional stimulus to support the economy, and rising COVID-19 case counts around the globe. Orders for durable goods rose 0.4% in August, the Commerce Department said Friday, signaling slowing momentum in the economy. Shares of NVIDIA Corporation rose in early trade after a price-target increase. The chipmaker is the S&P 500 component that's gained the most in the year to date - 110%.


Hawaiian Airlines to offer travelers drive-through COVID-19 testing in LA, San Francisco

MarketWatch - 2d

Hawaiian Airlines parent Hawaiian Holdings Inc. said Friday that it will offer travelers from some U.S. mainland cities drive-through COVID-19 tests, so those who test negative can be exempt from Hawaii's 14-day quarantine requirement. The air carrier said the tests will be available near the international airports in Los Angeles and San Francisco. For results within 36 hours, the tests will cost $90 and will cost $150 for "day-of-travel" express service. "As Hawai'i's leading airline, it is critical to ensure that access to testing does not impede travel to Hawai'i, for visitors or our kama' ina (residents)," said Avi Mannis, senior vice president of marketing at Hawaiian. The stock, which rose 3.8% in premarket trading, has tumbled 57.7% year to date through Thursday, while the U.S. Global Jets ETF has shed 47.4% and the S&P 500 has edged up 0.5%.


Spirit AeroSystems terminates Asco acquisition deal, more than 2 years after it was announced

MarketWatch - 2d

Spirit AeroSystems Holdings Inc. disclosed Friday that ihas reached an agreement to terminate the deal to buy Asco Industries N.V. parent, S.R.I.F. NV. The termination comes after Spirit said earlier this week that the deal may be terminated because conditions of the deal had not been satisfied. The deal was first announced in May 2018 for $650 million, then the purchase price was lowered to $420 million in October 2019. Spirit's stock, which rose 1.1% in premarket trading Friday, has plunged 74.8% year to date through Thursday, while the S&P 500 has gained 0.5%.


Sunworks stock pulls back, after disclosing delisting notice received just before the recent rally

MarketWatch - 2d

Sunworks Inc. stock's recent rocket ride higher came at a good time for the photovoltaic-based power systems company. The stock tumbled 18.6% in premarket trading Friday, after the company disclosed that on Sept. 22, it has received a delisting notice from the Nasdaq, because it has failed to comply with the minimum bid price requirement, which states companies must maintain a minimum closing bid price for its stock of at least $1 a share. "The company is monitoring the bid price of its common stock and will consider options available to it to achieve compliance," Sunworks said in a statement. But after the stock closed at 77 cents on Sept. 22, it soared 50.4% on Wednesday to $1.16 and 238.8% on Thursday to close at $3.93. The rally came after the shares of SPI Energy Co. Ltd. , which also operates in the photovoltaic market, blasted 1,236.5% higher on Wednesday after the company announced it was starting an electric-vehicle subsidiary. Sunworks shares have more than tripled (up 214.4%) year to date through Thursday, while the S&P 500 has inched up 0.5%.


Zillow raises home price growth outlook even as sales are set to 'gradually decline'

MarketWatch - 2d

Zillow Group Inc. raised on Friday its outlook for home price growth over the next year, as sales and prices have stayed strong through the summer given increasingly short inventory and continued strong demand. The online real estate services company said it expects adjusted home prices to increase 1.2% from August to November. From August 2020 to August 2021, Zillow now expects adjusted home prices to rise 4.8%, up from a previous forecast of a 3.8% increase. The raised price outlook comes despite expectations for adjusted home sales to peak this fall and "gradually decline" through 2021, although sales volumes overall are expected to remain above pre-pandemic levels throughout this year and next. Zillow's Class C shares, which were little changed in premarket trading, have more than doubled (up 112.9%) year to date, while the S&P 500 has inched up 0.5%.


Unity Software coverage on Wall Street started with a bullish call, $100 price target

MarketWatch - 2d

D.A. Davidson analyst Franco Granda kicked off Wall Street coverage of Unity Software Inc. will a bullish rating, and a price target that was nearly double the initial public offering price. The videogame software company went public on Sept. 18, with the stock closing that day at $68.35, or 31.4% above its IPO price of $52; the stock closed Thursday at $83.20. Garda initiated Unity with a buy rating and $100 stock price target, saying he believes "this growth story has legs," as he expects a "meaningful revenue ramp" in the years ahead. " We like Unity for four reasons: exposure to the entire gaming market; significant growth opportunities in applications beyond gaming; a hybrid revenue model with plenty of upside; and potential beneficiary of the Epic Games vs. Apple feud (call option)," Granda wrote in a note to clients. He's the only analyst covering the stock that is followed by FactSet. Unity's stock fell 1.9% in premarket trading, after rising 21.7% over the past four days, while the S&P 500 has lost 2.2% over the same time.


Novavax stock rises as it announces vaccine manufacturing deal with Endo

MarketWatch - 2d

Shares of Novavax Inc. jumped 6.8% in premarket trading on Friday after the company announced a COVID-19 vaccine manufacturing deal with Endo International . Endo's stock is up 7.3%. One of Endo's subsidiaries will provide fill-finish manufacturing services at a factory in Rochester, Mich.; the product being produced is expected to be used in the company's Phase 3 trials for NVX-CoV2373 in the U.S. as well as for potential general distribution to the public if the vaccine candidate receives any type of regulatory approval or authorization. Novavax CEO Stanley Erck said in the news release that the company is preparing for its pivotal Phase 3 clinical trial in the U.S. "to get underway very soon." On Thursday Novavax had announced that its vaccine candidate had entered Phase 3 clinical trials in the U.K. So far this year Novavax's stock is up 2,473.9%, shares of Endo are down 35.6%, and the S&P 500 is up 0.5%.


Goldman's currency analysts say market is fearing Election Night uncertainty too much

MarketWatch - 2d

Goldman Sachs currency analysts say the market is fearing uncertainty over the U.S. election too much. "We think the market appears to be pricing too high of a probability that it will take a long time to sort out the winner. We agree this is certainly a tail risk, but a number of states-including some key Battlegrounds-allow votes to be processed and counted well before Election Day. Taken together with cross-state correlation on many sources of polling errors, it seems likely that markets will have enough information on Election Night or soon thereafter to gauge the likely winner, even if the race takes longer to be officially called," said analysts Michael Cahill and Alec Phillips.


Coronavirus tally: U.S. case tally jumps to over 45,000 in a day as deaths rise by nearly 900

MarketWatch - 2d

The global tally for confirmed cases of the coronavirus that causes COVID-19 climbed to 32.26 million as of Friday morning, according to data aggregated by Johns Hopkins University, while the death toll rose to 983,417. The U.S. was the world's leader with 6.98 million cases and 202,819 deaths. There were at least 885 new deaths in the U.S. on Thursday, down from 1,091 the day before, while new cases reported increased to 45,176 from 41,481, according to New York Times data. The new case tally compares with the daily average 41,859 over the past week, which is up 17% from the average two weeks earlier. Brazil has the second highest death toll in the world at 139,808 and third highest case tally at 4.66 million, JHU data show. India is third with 92,290 deaths and second with 5.82 million cases. Mexico is fourth with 75,439 deaths and seventh with 715,457 cases. The U.K. has 41,991 deaths and 418,889 cases, the highest death toll in Europe and fifth-highest in the world.


VIA Optronics prices IPO at low end of expectations, raises $93.8 million

MarketWatch - 2d

VIA Optronics AG's initial public offering priced at $15 per American depositary share, which was at the low end of the expected range of $15 to $17 per ADS. The Germany-based provider of interactive displays said late early Friday that it sold 6.25 million ADS in the IPO to raise $93.8 million. With 7.57 million ADS outstanding after the IPO, the pricing valued that company at $113.5 million. Berenberg was the sole book-running manager. The stock is expected to begin trading Friday on the NYSE under the ticker symbol "VIAO." The company is going public at a time that the Renaissance IPO ETF has rallied 58.7% year to date, while the S&P 500 has gained 0.5%.


Graybug Vision prices upsized IPO at midpoint of expected range, raises $90 million

MarketWatch - 2d

Graybug Vision Inc. said early Friday that its upsized initial public offering priced at $16 a share, in the middle of the expected range of $15 to $17 a share. The California-based biopharmaceutical company focused on retina and optic never disease treatments sold 5.625 million shares in the IPO, up from previous expectations of 4.79 million shares, to raise $90 million. With 19.16 million shares outstanding, the IPO pricing values that company at $306.5 million. The stock is expected to begin trading Friday on the Nasdaq under the ticker symbol "GRAY." SVB Leerink and Piper Sandler are acting as joint book-running managers. The company is going public at a time that the Renaissance IPO ETF has gained 20.1% over the past three months while the S&P 500 has edged up 5.3%


PMV Pharmaceuticals prices IPO at top end of expectations, raises $211.8 million

MarketWatch - 2d

PMV Pharmaceuticals Inc.'s initial public offering priced at $18 a share, which was at the top of the expected range of $16 to $18 a share. The oncology company said late Thursday that it sold 11.765 million shares in the IPO, which was recently upsized from 7.35 million shares, to raise $211.8 million. With 43 million shares outstanding after the IPO, the pricing valued that company at $773.99 million. Goldman Sachs, BofA Securities, Cowen and Evercore are the joint book-running managers. The stock is expected to begin trading Friday on the Nasdaq under the ticker symbol "PMVP." The company is going public at a time that the Renaissance IPO ETF has rallied 20.1% over the past three months, while the S&P 500 has gained 5.3%.


Johnson Outdoors raises dividend by 23.5%

MarketWatch - 2d

Johnson Outdoors Inc. said Friday that it is raising its quarterly dividend on its Class A shares by 23.5%, to 21 cents a share from 17 cents. The outdoor recreation products seller said the new dividend will be payable Oct. 23 to shareholders of record on Oct. 9. Based on Thursday's stock closing price of $80.36, the new annual dividend rate implies a dividend yield of 1.05%, compared with the implied yield for the S&P 500 of 1.74%. The stock, which is still inactive in premarket trading, has gained 4.8% year to date, while the S&P 500 has edged up 0.5%.


SEC fines BMW, U.S. subsidiaries for 'misleading' bond investors

MarketWatch - 3d

The Securities and Exchange Commission has slapped Germany's BMW AG and two of the company's U.S. subsidiaries with a $18 million penalty for allegedly fudging U.S. sales numbers to mislead bond investors. The SEC said late Thursday it has settled charges against the auto maker for disclosing "inaccurate and misleading information" about retail sales volume in the U.S. while raising about $18 billion from investors in several corporate bond offerings. BMW "inflated" its U.S. retail sales from 2015 to 2019, helping to close the gap between actual retail sales volume and internal targets "and publicly maintain a leading retail sales position relative to other premium automotive companies," the SEC alleged. BMW of North America LLC kept a reserve of unreported retail vehicle sales it internally referred to as the "bank," the SEC said in a press release. That was used to meet internal monthly sales targets "without regard to when the underlying sales occurred," the SEC said. BMW North America also paid dealers to designate vehicles as test-driving vehicles or loaners so that the company could count them as having been sold to customers. Additionally, BMW North America "improperly" adjusted its retail sales reporting in 2015 and in 2017 to meet internal sales targets or bank excess retail sales for future use, the SEC said. As a result, the information that the company provided to investors looking at bond offerings through a BMW U.S. financing subsidiary as well as to credit ratings agencies "contained material misstatements and omissions regarding BMW's U.S. retail vehicle sales," the SEC said. BWM cooperated with the investigation, which was taken into consideration in imposing the penalty, the SEC said. The three companies agreed to pay a joint penalty of $18 million and "to cease and desist from future violations of these provisions," the SEC said.


Colony Capital stock jumps after company agrees to sell hotel assets for $2.8 billion

MarketWatch - 3d

Shares of Colony Capital Inc. rose nearly 20% in the extended session Thursday after the real-estate investment firm said it has agreed to sell six of its hospitality portfolios to Highgate, a real-estate investment and hospitality management company. The deal is valued at $2.8 billion, including $67.5 million of gross proceeds and the assumption of $2.7 billion in debt. The six portfolios consist of 22,676 rooms across 197 hotel properties, Colony said. Colony is aiming "to focus exclusively on digital infrastructure assets," it said. "We are thrilled to be delivering on our commitment to dispose of non-core assets and harvest positive value for our hospitality business," Chief Executive Marc Ganzi said in a statement. "The sale of our legacy hospitality assets is a significant milestone in Colony's digital transformation as we pivot to focus exclusively on our fast-growing digital businesses that generate superior returns for Colony shareholders." The deal is expected to close in the first quarter of 2021. Shares of Colony ended the regular trading day down 1.3%.