[Ipg-smz] Asymmetrical Mergers

[Perlow, Jason]

Reverse mergers are between a private company and a public company though,
in which the private buys the public one. The scenario I am thinking about
is two publicly traded companies but one has about 10X the valuation of
another. But the smaller company has a market cap of $100B.

On Tue, Oct 22, 2019 at 5:11 PM Tom Henderson via Ipg-smz <
ipg-smz at netpress.org> wrote:

> Reverse mergers are pretty commonplace. Usually, it's structure, assets,
> cashcow-cashflow, management, international presence, etc that's the
> motivator. I've been involved with two of them. Many work out well, but a
> few of them are dodgy.
>
> Tom
>
>
> On 10/22/19 4:28 PM, Perlow, Jason via Ipg-smz wrote:
>
> Good example
>
> On Tue, Oct 22, 2019 at 4:26 PM Steve Wexler <
> stevewexler.wordslingers at gmail.com> wrote:
>
>> It wasn't a 10x acquisition, but Dell-EMC pushed the boundaries at least
>> a little bit for the IT industry.
>>
>> On Tue, 22 Oct 2019 at 16:23, Perlow, Jason via Ipg-smz <
>> ipg-smz at netpress.org> wrote:
>>
>>> Doesn't look great for the future of these things either
>>>
>>>
>>> https://www.washingtonpost.com/business/the-leveraged-buyout-industry-is-starting-to-eat-itself/2019/08/06/3a01e192-b843-11e9-8e83-4e6687e99814_story.html
>>>
>>> On Tue, Oct 22, 2019 at 3:42 PM Dan Rosenbaum via Ipg-smz <
>>> ipg-smz at netpress.org> wrote:
>>>
>>>> It sounds to me like you’re describing a classic leveraged buyout,
>>>> where a smaller company uses a bigger company’s assets or cash to buy it.
>>>> The classic case was RJR Nabisco.
>>>>
>>>>
>>>>
>>>> d
>>>>
>>>>
>>>>
>>>> *From: *Ipg-smz <ipg-smz-bounces at netpress.org> on behalf of "Perlow,
>>>> Jason via Ipg-smz" <ipg-smz at netpress.org>
>>>> *Reply-To: *<ipg-smz at netpress.org>
>>>> *Date: *Tuesday, October 22, 2019 at 3:28 PM
>>>> *To: *IPG List <ipg-smz at netpress.org>
>>>> *Cc: *Jason Perlow <jperlow at gmail.com>
>>>> *Subject: *[Ipg-smz] Asymmetrical Mergers
>>>>
>>>>
>>>>
>>>> Does anyone know, historically, of a merger between two companies where
>>>> the valuation was highly asymmetrical? Such as when you might have a
>>>> company that is worth $1000B, but wants to merge with a company that is
>>>> worth $100B? They don't have the assets to buy it outright, but it would be
>>>> a beneficial marriage.
>>>>
>>>>
>>>>
>>>> I am going by this list and I cannot find any that are comparable.
>>>>
>>>>
>>>>
>>>>
>>>>
>>>> https://en.wikipedia.org/wiki/List_of_largest_mergers_and_acquisitions
>>>>
>>>>
>>>>
>>>> --
>>>>
>>>> *JASON PERLOW*
>>>>
>>>> Sr. Technology Editor, ZDNet
>>>>
>>>>
>>>>
>>>> *Voice/Text (561)510-0063 jperlow at gmail.com <jperlow at gmail.com> **ZDNet
>>>> Tech Broiler: **www.techbroiler.com <http://www.techbroiler.com/>*
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>>>>
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>>>
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>>
>>
>> --
>> Steve Wexler
>> Wordslingers Ink
>> 416-282-0091
>> stevewexler.wordslingers at gmail.com
>>
>
>
> --
> *JASON PERLOW*
> Sr. Technology Editor, ZDNet
>
>
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> Tom Henderson
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-- 
*JASON PERLOW*
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