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I don't have numbers, but a lot of shareholders are still out of the money - they bought when the price was climbing from ~40 to the peak of 70. I doubt that a
by karangoeluw 11y ago
I don't have numbers, but a lot of shareholders are still out of the money - they bought when the price was climbing from ~40 to the peak of 70.
I doubt that a 40% premium will be enough. But I can see your skepticism. A lot of acquisitions never make sense.
- Riod 11y agoIt would most likely not get past Google's board. And investors would crucify them for paying that kind of premium for a stalled social network (aka don't get the incremental benefits of growth via network effects). They would be left with 1) increase revenue/user or 2) cut costs. Periscope doesn't fulfill the "toothbrush" principle, aka stuff that you use every day. That's how Google does M&A. Their corporate development people have talked about it publicly. Also, the shares turnover every 26 days given that about 26MM shares trade every day. Hard to say that a majority of the shareholder base would not accept a 40% premium.