Blue Owl Capital Faces Class Action Lawsuit After Failed Merger Announcement
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Globenewswire
- Poor Financial Performance: Blue Owl reported fee-related earnings of only $376.2 million for Q3 2025, missing market expectations and causing a 4.23% drop in share price on October 30, indicating significant profitability pressures on the company.
- Merger Agreement Termination: Following the merger announcement, Blue Owl terminated the agreement on November 19, 2025, due to unfavorable market conditions, exacerbating investor concerns and resulting in a cumulative share price decline of over 10% during this period.
- Investor Loss Risks: According to the Financial Times, the merger could lead to a 20% loss for OBDC II investors, highlighting the company's liquidity issues and a severe lack of investor confidence.
- Legal Action Initiated: Investors have filed a class action lawsuit alleging significant disclosure failures by the company, which may lead to further losses for investors, reflecting deficiencies in corporate governance and transparency.
OWL
$15.285+Infinity%1D
Analyst Views on OWL
Wall Street analysts forecast OWL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for OWL is 22.00 USD with a low forecast of 18.00 USD and a high forecast of 28.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
10 Buy
2 Hold
0 Sell
Strong Buy
Current: 15.030
Low
18.00
Averages
22.00
High
28.00
Current: 15.030
Low
18.00
Averages
22.00
High
28.00
About OWL
Blue Owl Capital Inc. is an alternative asset management company. The Company deploys private capital across Credit, GP Strategic Capital and Real Estate platforms on behalf of institutional and private wealth clients. Its product platforms include Credit, GP Strategic Capital and Real Estate. Its credit products offer private financing solutions primarily to upper-middle-market companies. Its credit products are offered through a mix of business development companies, long-dated private funds, managed accounts and collateralized loan obligations. It is focused on acquiring equity stakes in or providing debt financing to private capital firms. Its Real Estate products are focused on acquiring triple net lease real estate occupied by investment-grade or creditworthy tenants. Its Real Estate products are offered through Permanent Capital vehicles, including its real estate investment trusts, and long-dated private funds. It offers asset management services to the insurance industry.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
