Paid For Github In 1 day. Cool.
This is a Symbol Surfing Post from Mon, Jun 4, 2018.
Microsoft has acquired GitHub for $7.5B in stock
The market capitalization of MSFT is $780 billion.
This $7.5 billion purchase represents less than 1% of $780 billion market cap.
It's also worth mentioning that MSFT stock was up almost 1% today on this news.
The increase in stock price today alone almost paid for the entire acquisition.
I remember when Google bought YouTube for $1.65 billion in stock back on October 9, 2006
The increase in Google's stock price more than paid for the entire purchase within a few days.
So, what does it mean when the acquirer's stock price goes up?
It means that the market likes the purchase.
Mon, Jun 4, 2018 MSFT @ $101.67