3 ms·
Isn't idea of leveraged buyout well buyout? And almost always with premium. That is existing shareholders get paid more than current market price of their holdi
by Ekaros 1y ago
Isn't idea of leveraged buyout well buyout? And almost always with premium. That is existing shareholders get paid more than current market price of their holdings. So they should also be winners and able to redeploy the capital they got.
- swiftcoder 1y agoPremiums on buyouts are kind of interesting: the buyout price was a 25% premium on the day the news was announced (and a 17% premium over the all-time high)... but of course the market immediately priced that in, so for the past few weeks it's been just a 5% premium over where EA stock is actually trading.
- s1artibartfast 1y agoSo how will those stock holders lose out? They just got a massive buyout.
- swiftcoder 1y agoThey lose the future upside of a company which a major cartel of investors clearly considers to be undervalued
- s1artibartfast 1y agoThen they shouldn't sell! Sales occur because the two sides have differences in valuation.