- What is Soho House?
- What’s the Soho Take-Private Deal?
- Who’s Behind the Take-Private Move?
- Why Does the Deal Matter to Soho?
- What This Means for Soho Shareholders and Other Stakeholders?
- The Bigger Picture With Soho
Soho House & Co (NYSE: SHCO) which is the upscale members-club operator, surged and closed more than 14% as per Google Finance on Monday, August 18, 2025 on the back of news that the company had agreed to a deal which takes it private in a $2.7 billion deal. The $9 per share cash for stock offer, which is being led by hotel owner MCR Hotels, sent Soho House share price surging and marked a significant moment in Soho House’s turbulent public market journey.
Let’s break down with this blog what happened, why it matters, and what comes next.
What is Soho House?
Soho House is a private members’ club and hospitality brand that started in London back in 1995. Over the years, it has built a reputation for creating stylish spaces where creatives and professionals come together from exclusive clubs and boutique hotels to restaurants and events. Today, the group runs more than 40 Houses across major cities in Europe, North America, and Asia. The company is officially called Membership Collective Group and has been listed on the New York Stock Exchange since 2021 under the ticker SHCO.
What’s the Soho Take-Private Deal?
Soho House will go private in a deal which is valuing the company, including debt, at about $2.7 billion. Shareholders now have an offer to get $9 per share which is a 17.8% premium over the Friday closing price of $7.64. After the announcement, the shares surged roughly 15-16% trading around $8.80 to $8.86 in early action and closed with a 14.92% surge at $8.78 which is just shy of the deal price, reflecting a close arbitrage gap and confidence that the transaction will close by end-2025.
Deal Summary Table
| Key Fact | Detail |
| Deal value | $2.7 billion (including debt) |
| Offer price | $9 per share cash (approx. 17.8% premium) |
| Friday’s closing price | ~$7.64 |
| Stock jump | ~15–16% to ~$8.80–8.86 |
| New board members | Ashton Kutcher, Tyler Morse (vice-chair) |
| New CFO | Neil Thomson |
| Insiders retaining control | Ron Burkle, Nick Jones, Richard Caring, Goldman Sachs |
| Backer financing | Apollo Global Management ($700–800m) |
| Expected closing | End of 2025, pending approvals |
| NYSE status post-deal | Will be delisted |
Who’s Behind the Take-Private Move?
The buyout is being led by MCR Hotels which is the third-largest hotel owner in the United States. Its chief executive, Tyler Morse, will take a seat on the Soho House board as vice-chair. Joining him is Ashton Kutcher, the famous actor and technology investor who has been a long-time member of the club. Neil Thomson has also been appointed as chief financial officer with immediate effect.
On the ownership side, Ron Burkle (through Yucaipa Companies), founder Nick Jones, investor Richard Caring, and Goldman Sachs Alternatives will keep their stakes in the business. By rolling over their shares, this group will maintain majority control once the company leaves the stock exchange.
Backing the deal financially, Apollo Global Management is providing between $700 million and $800 million in a mix of debt and equity funding.
Why Does the Deal Matter to Soho?
Premium Offer and Market Confidence: The $9-a-share buyout gives investors a 17.8% premium over Friday’s close. While still below the $14 IPO price, it offers quick upside after years of losses. The stock now trades just under the offer, signaling that markets expect the deal to go through.
Relief from Public Market Pressures: Since listing in 2021, Soho House lost nearly half its value as expansion costs weighed on profits. Even with recent profitable quarters, Wall Street stayed cautious. Going private removes that pressure, letting the company focus on exclusivity, member experience, and long-term stability.
Renewed Strategic Direction: With MCR Hotels and existing insiders at the helm, Soho House can reset its strategy. Tyler Morse brings hotel expertise, while Ashton Kutcher adds visibility and connections. The focus now is on steady growth and protecting the brand’s identity, rather than chasing fast scale.
What This Means for Soho Shareholders and Other Stakeholders?
If you hold Soho House shares, there’s nothing you need to do at this stage. Once the take-private deal closes, your shares will be converted into cash automatically at $9 per share. The only choice for investors now is whether to sell in the market at current levels or wait until the transaction is completed.
As for other stakeholders:
- Activist investors (e.g., Third Point/ Dan Loeb) achieved a sale, though some desired a more competitive process or higher offer.
- Minority holders: Liquidation at the deal price with little participation in future upside.
- Private owners (Burkle, Jones, Caring, Goldman): Ongoing control and ability to steer long-term strategy outside of public markets.
- Industry watchers: A high-profile example of a lifestyle brand retreating from public market constraints to protect its mystique and niche value.
The Bigger Picture With Soho
The take-private deal reflects a wider trend where lifestyle and culture-driven brands often struggle under public market pressure. For Soho House, the move is less about retreat and more about protecting its identity, focusing on exclusivity, member experience, and long-term growth rather than quarterly results.
With backing from MCR, Apollo, Ashton Kutcher, and long-time insiders, Soho House now has the chance to reset. Success will hinge on managing new openings carefully while preserving its brand’s appeal. Freed from Wall Street scrutiny, the company may find a more sustainable path and rebuild the confidence that once made it stand out.
Disclaimer:
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