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Stupid stock question

Posted on 6/11/14 at 10:00 am
Posted by dallastiger55
Jennings, LA
Member since Jan 2010
27660 posts
Posted on 6/11/14 at 10:00 am
Directv agreed to sell to AT&T for between $96/100 a share and right now it's trading at $82.


Why doesn't everyone load up on directv at $82 because when the FCC approves it won't it go to $96/100 or am I off?

What am I missing?
Posted by jso0003
Member since Jun 2009
5170 posts
Posted on 6/11/14 at 10:10 am to
Market doesn't believe the deal gets done for 96 a share or that the deal has a decent chance of falling apart.

There is still lots that could happen between now and then.
Posted by TheHiddenFlask
The Welsh red light district
Member since Jul 2008
18384 posts
Posted on 6/11/14 at 1:08 pm to
There is an entire hedge fund subsector that does nothing but that (merger arb).

The risk is that if the deal falls through, Directv stock will go into free fall.
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37023 posts
Posted on 6/11/14 at 2:18 pm to
Approval, if/when it comes, is a while off.

I think future approval of the sale, as currently written, is too unsure, to reflect in the stock price.

If the deal gets approval, I think it will be with some conditions, which will lower the offer price.

If the deal does not get approval, DTV could collapse. Anyone it could then merge with would be a significantly smaller player, or someone not in competition with them currently.
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