Soho House stock jumped 15.3% on Monday after the exclusive members’ club operator agreed to a $2.7 billion private buyout deal. The Soho House Ashton Kutcher transaction will actually take the company private at $9.00 per share, which represents an 83% premium over the previous closing price. MCR Hotels is leading this acquisition, and actor Ashton Kutcher will be joining the board along with bringing some serious star power to the deal.

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Soho House Stock Surge, Ashton Kutcher Deal, Membership & Celebrities

The Buyout Deal That’s Driving Soho House Stock Higher Right Now

The Soho House stock surge reflects investor excitement about MCR Hotels’ acquisition offer. Shareholders are set to receive $9.00 cash per share, which will end the company’s four-year public trading period since its 2021 IPO at $14.

MCR Hotels, which operates over 150 properties including the TWA Hotel at JFK, is being backed by Apollo Global Management and also Goldman Sachs Alternatives. The Soho House Ashton Kutcher partnership adds celebrity appeal to what’s already an interesting transaction.

CEO Andrew Carnie stated:

“This reflects the strong belief our existing and incoming shareholders have in the future of Soho House & Co., and the transformation we’ve led since becoming a public company.”

Current Performance and Market Response

The Soho House price today reached $8.78, marking a new 52-week high and 18.8% year-to-date gains. Soho House stock has been experiencing significant volatility with 31 moves greater than 5% over the past year alone.

The Soho House Ashton Kutcher deal provides some certainty after what’s been a challenging public market performance. Original IPO investors who purchased $1,000 worth of shares would now hold approximately $694.31. This isn’t great but at least they’re getting a decent exit price right now.

Membership Structure and Celebrity Appeal

Soho House membership spans over 270,000 members across 46 locations in 18 countries. The club generated $329.8 million in second-quarter revenue, up 8.9% year-over-year, which was actually pretty solid performance.

What celebrities are Soho House members remains partly confidential due to privacy policies that are pretty strict. However, Leonardo DiCaprio, Justin Timberlake, Jessica Biel, and even Prince Harry and Meghan Markle are rumored members. The question of what celebrities are Soho House members often attracts media attention, though the club rarely confirms these affiliations.

Soho House membership includes unlimited access to all global Houses, guest privileges, early access to new openings, and discounts on accommodations. The Soho House membership structure also offers reduced rates for members under 27, which is pretty nice for younger professionals.

Why the Private Move Makes Sense

The Soho House price today reflects market confidence in this privatization strategy. The company has been struggling with profitability since its 1995 founding, reporting losses every year despite revenue growth.

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The Soho House Ashton Kutcher transaction addresses activist investor pressure from Dan Loeb’s Third Point fund, which had been pushing for a sale process. The deal is expected to close by year-end, pending approvals, and will end the company’s NYSE listing while beginning a new private ownership chapter that’s focused on expansion and technology improvements.