Key Takeaways
- MeridianLink (MLNK) is set to go private in a $2 billion deal with Centerbridge Partners, offering shareholders a 26% premium at $20 per share.
- Paramount (PARA), now under Skydance control, secured exclusive U.S. Ultimate Fighting Championship (UFC) streaming rights in a seven-year, $7.7 billion deal, marking a significant shift away from UFC's traditional pay-per-view model.
- Gold prices fell after President Donald Trump confirmed that imported gold bullion would not face tariffs, alleviating market fears triggered by a recent U.S. Customs and Border Protection (CBP) ruling.
- U.S. stocks slipped across major indices as investors cautiously awaited key Consumer Price Index (CPI) data, due Thursday, which is expected to influence the Federal Reserve's potential September rate cut.
- U.S. steel capacity utilization reached 79.5% for the week ended August 9, according to the American Iron and Steel Institute (AISI), indicating strong activity in the domestic steel sector.
U.S. financial markets saw significant activity on Monday, August 11, with major corporate deals, policy clarifications, and pre-economic data jitters shaping trading sessions. Technology firm MeridianLink announced a substantial take-private deal, while media giant Paramount made a strategic move into sports streaming. Meanwhile, gold prices reacted to a tariff reversal, and U.S. stocks edged lower ahead of crucial inflation data.
Software firm MeridianLink (MLNK), a provider of cloud-based solutions for financial institutions, confirmed it would go private in an all-cash transaction valued at approximately $2 billion with investment firm Centerbridge Partners. The deal offers MeridianLink shareholders $20 per share, representing a 26% premium over the stock's closing price on August 8. The acquisition is anticipated to close in the second half of 2025.
In the entertainment sector, Skydance-owned Paramount (PARA) secured exclusive U.S. broadcasting and streaming rights for the Ultimate Fighting Championship (UFC) in a monumental seven-year deal valued at $7.7 billion, or an average of $1.1 billion annually. This agreement, set to begin in 2026, will see UFC's marquee numbered events and Fight Nights move to the Paramount+ streaming service, with select events simulcast on the CBS television network, effectively ending UFC's long-standing pay-per-view model. The deal marks the first major strategic move by the newly merged media giant, formed just days after the completion of the Paramount Global and Skydance Media merger.
Gold prices experienced a notable decline following President Donald Trump's assurance that no tariffs would be imposed on imported gold bullion. This announcement came after a recent ruling by the U.S. Customs and Border Protection (CBP) had suggested that certain gold bars could face country-specific import tariffs, causing market turmoil and driving gold futures to record highs. U.S. gold futures dropped 2.4% to $3,407 per ounce, while spot gold fell 1.2% to $3,357 per ounce in response to the clarification.
On the broader market front, U.S. stocks slipped as investors adopted a cautious stance ahead of key inflation data releases. The S&P 500 fell 0.25%, the Dow Jones Industrial Average dropped 0.3%, and the Nasdaq Composite eased 0.2%. Traders are keenly awaiting the July Consumer Price Index (CPI) data due on Tuesday and Producer Price Index (PPI) data on Thursday, as these figures are expected to heavily influence expectations for a potential Federal Reserve rate cut in September. Markets are currently pricing in a high probability, nearly 86%, of a Fed rate cut next month.
In the industrial sector, U.S. steel capacity utilization for the week ending August 9 was reported at 79.5% by the AISI. This figure reflects ongoing robust activity within the domestic steel industry.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.