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by basch
171 days ago
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If two $1B companies 'merge' and the surviving entity gives the acquired entity $1B in shares, it didnt 'cost' the acquiring entity anything. Facebook's stock was up 20% later in the year after the acquisition. Facebook was worth $134.2-139.2B end of 2013 and $217.5-218.5B end of 2014. I would say it is misleading to say it cost them $15B in shares if the remaining shares FB kept ended up more valuable after the transaction. |
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