Mergers & Acquisitions - How to calculate stock buyout price?
Thread DetailsLast Edited by im2bz2p December 9, 2011 at 09:45 AM
Does anyone know how to calculate a stock's close price if they are acquired by another company? This question is best illustrated by an example:
Google (GOOG) had announced on Nov. 17 to buy Motorola Mobility Holdings (MMI) for $12.5 billion cash.
It was mentioned that the price per share was $40, but I don't understand how they calculated this.
I thought the calculation would be $12,500,000,000/299,040,000 (number of shares outstanding: http://finance.yahoo.c
Can anyone explain? Sometimes in the buyout news articles that I read, they only list the buyout amount (in this case $12.5 billion) and not the price per share, so I was curious how to calculate this. Maybe they are getting the "number of shares outstanding" from a different source.
I appreciate the help in advance,