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Ask a Fool: Foolish Opinion on Top 3 Buyout Targets

By Brendan Mathews and Jason Moser – Mar 4, 2014 at 7:06PM

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Which three companies today could be potential buyout targets?

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 (YELP 0.07%) could be purchased for its healthy user base and big repository of data. Brendan thinks DreamWorks Animation (DWA) could be purchased for its library of content and characters. He also believes that WisdomTree Investments (WT 0.35%) could be an attractive target for a big financial firm looking to expand its presence in exchange-traded funds.

Brendan Mathews owns shares of WisdomTree Investments. Jason Moser has no position in any stocks mentioned. The Motley Fool recommends DreamWorks Animation, WisdomTree Investments, and Yelp. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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