>Oh it ended up owned by Porsch? No, VW Group owns Porsche, the car brand. There is also Porsche SE which is a tiny company, which owns controlling shares over

>Oh it ended up owned by Porsch? No, VW Group owns Porsche, the car brand. There is also Porsche SE which is a tiny company, which owns controlling shares over VW Group. The short squeeze happened because there aren't actually that many shares around which you can buy. >I know that a merger doesn't involve paying the market cap. It's more about convincing the shareholders that their final shares in the merged company would be worth more than the sum of whatever shares they have in each part. Shareholders opinions are totally irrelevant. The only thing that would matter is the family who owns Porsche SE agreeing, which isn't going to happen. Market cap is the product of the number of shares and what the market thinks a single share is worth. So the market cap matters as it puts a bound on what the price could be. But in this case the price at which shareholders would accept such an acquisition is irrelevant, as their is a single shareholder who holds controlling shares and gets to make the decision.