Yelp (YELP) Gains as Analyst Says Share Conversion Makes Takeover 'Easier', 'More Likely'
- Top 10 News for 10/17 - 10/21: Merger Rumors Abound; CEOs Depart; Tesla Kicks Autopilot Up A Notch
- Wall Street ends little changed; Microsoft hits record
- AT&T (T) in Advanced Talks to Acquire Time Warner (TWX) - DJ
- Rockwell Automation (ROK) Said to Attract Takeover Interest from Schneider Electric - Source
- British American Tobacco Offers to Acquire Remaining Shares of Reynolds American (RAI) for $56.50/Share
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
(Updated - September 26, 2016 10:19 AM EDT)
Yelp (NYSE: YELP) is up 1.4% early Monday after Cantor Fitzgerald Youssef Squali suggested the conversion of Class B super-voting shares into regular Class A makes the company "an easier, and more likely take-out target."
Squali notes that previously, with B shares having 10x the voting rights of A shares, B shares holders controlled over 50% of the aggregate voting power. Now those same holders control less than 10% of the vote.
The analyst highlighted Facebook (NASDAQ: FB), Priceline (NASDAQ: PCLN), TripAdvisor (NASDAQ: TRIP) and Microsoft (NASDAQ: MSFT) as potential acquirers. The analyst said ill will between Alphabet (Google) (NASDAQ: GOOGL) and Yelp, developed over the years, is unlikely to lead to a transaction between the two.
The analyst said the stock may be worth $53/share in a deal, using the sale of LinkedIn as a proxy. This suggests a 34% premium from current levels.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- GrubHub (GRUB), Yelp (YELP) Shares Pressured as Facebook (FB) Debuts New 'Order Food' Feature
- Virgin America (VA) Gains; Alaska Air (ALK) Near Consent Decree - CTFN
- Wells Fargo Raises Valuation Range, Not Rating on Time Warner (TWX) Following Latest AT&T Speculation
Create E-mail Alert Related CategoriesAnalyst Comments, Hot Comments, Rumors, Trader Talk
Related EntitiesCantor Fitzgerald
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!