3 Buyouts That Just Make Sensehttp://www.fool.com/investing/general/2013/02/14/3-buyouts-that-just-make-sense.aspx Travis Hoium
February 14, 2013
Mergers and acquisitions are tough to predict -- but that doesn't mean it's not fun to try. There are a lot of business marriages that make sense from a strategic or financial perspective. Here are three I think would make all the sense in the world.
Toyota buying Tesla Motors
Tesla Motors (NASDAQ: TSLA) could change that and bring a whole new feel to the company. Tesla is already supplying drivetrains for the RAV4, so there's a relationship between the companies. We also know that Toyota is willing to take technological leaps forward, as it did with the Prius, creating early dominance in the hybrid market. Tesla could do the same for electric cars, giving Toyota credibility that General Motors, Ford, and Nissan haven't been able to gain in early electric efforts.
I'm not sure Elon Musk would be excited about a deal, but a few billion dollars could change that. Tesla currently has a $4.37 billion market cap and a 50% premium would cost about $6.55 billion, or $57.68 per share. For Toyota, I think it would be money well spent and for Tesla it would take a lot of risk out of the way before ever earning a dime in profit, plus get a great price for shareholders.
Comcast buys up content
Comcast is up against media giants like Disney, Time Warner, and Viacom, which own a vast majority of the content we consume. If Comcast added DreamWorks Animation to its stable, it would get two or three full feature movies per year, a number of television shows, and all of DreamWorks' past content. For $2 billion or so, that could end up being a steal.
With DreamWorks' stock trading near a 52-week low, I don't think investors would oppose a deal, either. Comcast needs more content and DreamWorks would love to find a buyer so it isn't all alone in a world of big media. This deal makes all the sense in the w