Shares of Sinclair Broadcast Group roared an inexplicable 35% on Monday, the biggest one-day gain in 10 years that pushed the stock to a record high. The jump came after the TV broadcasting company's deal to buy 21 regional sports networks from Disney was reported Friday.
Background: Selling the sports networks was a condition of Disney's $71.3 billion acquisition of Fox's major entertainment assets.
- "While consumer viewing habits have shifted, the tradition of watching live sports and news remains ingrained in our culture," Sinclair CEO Chris Ripley said, according to Barron's.
What to watch: The deal got Sinclair a bullish upgrade from B. Riley FBR analyst Zack Silver, but Monday's price action sent share prices well above his $57 price target.