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Yahoo's stock is worth 20 billion. You can acquire companies for stock and cash. When a company is public, you can acquire more easily in exchange for stock. M
by quellhorst 15y ago
Yahoo's stock is worth 20 billion. You can acquire companies for stock and cash. When a company is public, you can acquire more easily in exchange for stock.
Mark Cuban became a billionaire from his Yahoo stock he got from the acquisition of broadcast.com.
- pitdesi 15y agoYahoo's stock is worth 20 billion... and is mostly owned by shareholders. Yahoo can't give it to someone else, because people like me own it. Edit: Suking is right, they could issue new shares... IF people actually wanted Yahoo shares and a target company would actually accept them. (would not happen)
- suking 15y agoThey would create new shares. If they buy someone for $4bn, they create $4bn in new shares and if the public market values the acquisition at $4bn, the price will remain the same. Usually, companies that acquire pay a premium and will take a dip though.
- agotterer 15y agoNot mention even if they had the $20B to buy all those companies. You now have a portfolio of companies that really don't make much/any money. Those smart people aren't going to work for free!
- deleted 15y ago[deleted]