{"id":2036,"date":"2017-03-21T10:54:25","date_gmt":"2017-03-21T14:54:25","guid":{"rendered":"http:\/\/www.ipoboutique.com\/blog\/?p=2036"},"modified":"2017-03-21T10:54:25","modified_gmt":"2017-03-21T14:54:25","slug":"ipo-boutique-brief-3-21-17-snap-is-not-selling-itself-for-14share","status":"publish","type":"post","link":"https:\/\/www.ipoboutique.com\/blog\/ipo-boutique-brief-3-21-17-snap-is-not-selling-itself-for-14share\/","title":{"rendered":"IPO Boutique Brief &#8211; 3.21.17 &#8211; Snap is not selling itself for $14\/share"},"content":{"rendered":"<p>There&#8217;s a lot of grumpy men on Wall Street who like to throw cold water on theories, ideas, research and\/or trades.<\/p>\n<p>We will join this list of curmudgeons happily.<\/p>\n<p>Snap is not going to sell itself to Facebook for $14 a share.<\/p>\n<p>The article was written by FBN Securities and it has been circulated around some of the top market sites &#8212; <a href=\"http:\/\/www.investopedia.com\/news\/analyst-facebook-would-buy-snap-14share\/\">this link is to\u00a0Investopedia<\/a> &#8212; but it has been posted at other sites like Barron&#8217;s. \u00a0I would encourage you to read\u00a0it in its entirety but the key points are:<\/p>\n<ul>\n<li>Facebook tried to buy it already<\/li>\n<li>Facebook has the cash<\/li>\n<li>Facebook could remove a threat<\/li>\n<\/ul>\n<p>What the article fails\u00a0to mention is the impact of the recent IPO. It is highly pertinent to include the valuation established after a much-hyped roadshow. Did the author of the article &#8216;forget&#8217; that Snap Inc just sold 200mm shares (with no voting power) to an array of investors for $17\/share. Additionally, a quarter of the new shareholders have a one-year lock-up agreement. To even suggest a timetable where $14\/share would be a conceivable offer for Snap would be somewhere in the 4-5 year range and that would be if metrics began deteriorating.<\/p>\n<p>Typically, a company would not likely\u00a0subject itself to the rigors of taking a company public, especially one with such the high-profile nature of Snap, just to sell itself within 12 months.\u00a0A high-profile technology company, AppDynamics, did sell itself\u00a048 hours prior to making a debut in January 2017. But this buyout, $3.7bn by Cisco, was a significant premium to the $1.7bn to $1.9bn that the company was potentially being valued at if the deal ended up being priced. Furthermore,\u00a0to think that Snap, a much higher-profile company in comparison to AppDynamics, would sell itself to Facebook at a discount to the offering price is a theory best described as &#8216;click-bait&#8217;.<\/p>\n<p>However, in the article&#8217;s defense, there is no timeline established for when a $14\/share bid\/buyout would or could happen.\u00a0But, in our opinion, it is about as far-fetched as seeing the Easter Bunny, Tooth Fairy and Santa Claus\u00a0show up at your house for dinner tomorrow night.<\/p>\n<p>My guess is that you won&#8217;t be needing to cook extra food&#8230;and Snap has no chance of being acquired by Facebook for $14\/share.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There&#8217;s a lot of grumpy men on Wall Street who like to throw cold water on theories, ideas, research and\/or trades. We will join this list of curmudgeons happily. Snap is not going to sell itself to Facebook for $14 a share. The article was written by FBN Securities and it has been circulated around[&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"zakra_general_container_width":0,"zakra_general_content_width":0,"zakra_general_sidebar_width":0,"zakra_sticky_header":"customizer","zakra_header_main_area":true,"zakra_site_logo_width":0,"zakra_header_top_enabled":"customizer","zakra_header_top_style":"customizer","zakra_primary_menu_item_style":"customizer","zakra_page_header_text_color":"","zakra_page_header_layout":"customizer","zakra_page_title_bg":"","zakra_footer_widgets_bg_image":0,"zakra_page_title_bg_repeat":"customizer","zakra_page_title_bg_position":"customizer","zakra_page_title_bg_size":"customizer","zakra_page_title_bg_attachment":"customizer","zakra_breadcrumbs_enabled":"customizer","zakra_breadcrumbs_text_color":"","zakra_breadcrumbs_separator_color":"","zakra_breadcrumbs_link_color":"","zakra_breadcrumbs_link_hover_color":"","zakra_page_title_bg_image":0,"zakra_footer_widgets_enabled":"customizer","zakra_footer_column_layout_1_style":"customizer","zakra_footer_widgets_bg":"","zakra_footer_widgets_bg_repeat":"customizer","zakra_footer_widgets_bg_position":"customizer","zakra_footer_widgets_bg_size":"customizer","zakra_footer_widgets_bg_attachment":"customizer","zakra_footer_bar_enabled":"customizer","zakra_footer_bar_style":"customizer","footnotes":""},"categories":[24],"tags":[],"class_list":["post-2036","post","type-post","status-publish","format-standard","hentry","category-ipo"],"_links":{"self":[{"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/posts\/2036","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/comments?post=2036"}],"version-history":[{"count":3,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/posts\/2036\/revisions"}],"predecessor-version":[{"id":2060,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/posts\/2036\/revisions\/2060"}],"wp:attachment":[{"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/media?parent=2036"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/categories?post=2036"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/tags?post=2036"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}