Buying Back Spinoffs
from the what-once-seemed-like-a-good-idea... dept
Here's a NYTimes article talking about the many companies that are suddenly deciding now is a good time to buy back the company they spun out a few years ago. It makes sense. Back then, the spin out would raise a ton of money to do stuff - and now those companies are cheap (very cheap). The article also talks about a legal judgment that has also made it easier for parent companies to take back over their subsidiaries, without necessarily going through a big process to prove the deal is fair. I wonder, if the economy really bounces back, if we'll see a trend to re-spinout companies that were spun out and bought back. It will be the corporate yo-yo.
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Mike Clouser, Founder, HVP clouser@ureach.com
650.544.8266
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The corporate yo-yo? I like that!
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Re: The corporate yo-yo? I like that!
Much like many equities we know in the public marketplace. Key to success is to buy low and sell high; then short sell when high. More patience required. More effort. But the potential returns are big.
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