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I'm a bit confused by what this means for WORK shareholders. "Under the terms of the agreement, Slack shareholders will receive $26.79 in cash and 0.0776 share
by theNJR 6y ago
I'm a bit confused by what this means for WORK shareholders.
"Under the terms of the agreement, Slack shareholders will receive $26.79 in cash and 0.0776 shares of Salesforce common stock for each Slack share, representing an enterprise value of approximately $27.7 billion based on the closing price of Salesforce’s common stock on November 30, 2020."
Lets say you own 100 shares of WORK. Does that mean you get both
1. $4,434 in cash (100 * 43.84 current value of WORK)
and
2. 7.76 shares of CRM (100 * .0776)
Edit: I can't read!
- pashabitz 6y ago$2,679 in cash
- jbeam 6y ago$2,679 in cash and the fractional shares of CRM (0.76) will likely be converted to cash as well at some market rate.
- manigandham 6y ago100 shares of WORK will be converted to $2679 and 7.76 shares of CRM. Where did you get 43.84 from? The current value of WORK doesn't matter, it's the closing price on 11/30. The stock price will effectively be pinned at that now since nobody will want to trade at another price.
- advisedwang 6y agoNo, it means you get 1. $2679 in cash (100 * 26.79) and 2. 7.76 shares of CRM (100 * .0776)
- JMTQp8lwXL 6y agoAre fractional shares rounded down and converted to cash? E.g., (following OP's example): 7.76 shares of CRM -> 0.76 shares of CRM => 241.35 (closing CRM price) * 0.76 = $183.42.