Investing.com - Shares of Manchester United soared in midday trading Wednesday after its crosstown rival sold a stake to a private equity firm, a move that could boost the valuation of all major soccer teams.
Silver Lake Partners, based in Menlo Park, Calif., will buy a little more than a 10% stake in City Football Group (CFG), owner of Manchester City, New York City FC and stakes in other clubs, for $500 million.
That values the group at about $4.8 billion.
Manchester United (NYSE:MANU) shares rose 10.8% on expectations that the deal could boost private equity or buyout interest in other major teams.
While Man City has eclipsed Man United on the field in recent years, helped by an influx of cash from Sheikh Mansour of the UAE, Manchester United has a history and global fanbase that make it one of the most famous clubs in soccer.
Silver Lake Managing Director Egon Durban, who will join CFG's board, said the California firm's investment would "help drive the next phase of CFG's growth in the fast-growing premium sports and entertainment content market."
Shares of Man United are down about 2.2% year to date.
-- Reuters contributed to this report.