Comment on Goldman Sachs and the $580 Million Black HoleparentComments−raverbashing14yThe stock swap thing seems to be common in M&AIt's done on the buyer's side, the seller company's partners get buyer's stock instead.It's not "your baby for theirs", it's more complicated−writetoalok14y> It's not "your baby for theirs", it's more complicatedHow so? Use the baby analogy (as it was indeed Baker's child), what was it in this case in your view?−raverbashing14yWell, because you agreed to the sale, so "your baby" is already gone, stock swap or not.And you're potentially getting a stock with more potential than the ones you have (which are most likely going away).And most stock are not materialized as a physical certificate, so it's mostly "on paper" (and on controlling power of course)
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The stock swap thing seems to be common in M&A
It's done on the buyer's side, the seller company's partners get buyer's stock instead.
It's not "your baby for theirs", it's more complicated
> It's not "your baby for theirs", it's more complicated
How so? Use the baby analogy (as it was indeed Baker's child), what was it in this case in your view?
Well, because you agreed to the sale, so "your baby" is already gone, stock swap or not.
And you're potentially getting a stock with more potential than the ones you have (which are most likely going away).
And most stock are not materialized as a physical certificate, so it's mostly "on paper" (and on controlling power of course)