In this edition of The Motley Fool's "Ask a Fool" series, Motley Fool One analyst Jason Moser and Motley Fool Stock Advisor analyst Brendan Mathews take a question from a reader, who asks: "What's your Foolish opinion on the top 3 buyout targets?"
To start, both Jason and Brendan point out that investing in companies with the prospect of a buyout isn't a good idea: It's too hard to reliably predict a buyout. That said, they each have companies that seem ripe for purchase by a bigger company. Jason thinks Yelp (NYSE:YELP) could be purchased for its healthy user base and big repository of data. Brendan thinks DreamWorks Animation (NASDAQ:DWA) could be purchased for its library of content and characters. He also believes that WisdomTree Investments (NASDAQ:WETF) could be an attractive target for a big financial firm looking to expand its presence in exchange-traded funds.