This is standard for all acquisitions. - The acquiring company's share price drops because it often pays a premium for the target company, or incurs debt to fi

This is standard for all acquisitions. - The acquiring company's share price drops because it often pays a premium for the target company, or incurs debt to finance the acquisition. - The target company's short-term share price tends to rise because the shareholders only agree to the deal if the purchase price exceeds their company's current value. See https://www.investopedia.com/ask/answers/203.asp https://www.investopedia.com/ask/answers/203.asp