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Google to buy Wiz for $32B

reuters.com

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Re: Google to buy Wiz for $32B

#71

Post by thinkindie »

atonse wrote: post #65

This is probably a dumb question, but what does all cash mean? Does it literally mean that they are putting $32bn in Wiz's bank account (or probably some kind of escrow, who knows) which then gets dispersed to their shareholders? What usually happens otherwise? Would they do partly google stock, etc? And each shareholder gets some kind of multiple? (you get your N amount of Wiz shares X .72 = your number of google sh…

Otherwise it depends on the deal structure. Especially if it's an acqui-hire, or founders are involved, it can be a combination of shares, options, earn-out, guaranteed bonus, certain salary levels (much higher then their current one) etc etc, and cash. Usually 100% cash deal is the most sought after unless the acquirer has a very solid business (in that case shares and options could be valuable too).

Re: Google to buy Wiz for $32B

#75

Post by sjm-lbm »

yujzgzc wrote: post #70

Sometime explain the strategic rationale behind this? Google's previous big acquisition in the cloud space, Looker, didn't exactly pan out.

.. and all the talk of multicloud makes me feel like I'm reading an IBM press release, which is never good.

Re: Google to buy Wiz for $32B

#76

Post by jaimebuelta »

atonse wrote: post #65

This is probably a dumb question, but what does all cash mean? Does it literally mean that they are putting $32bn in Wiz's bank account (or probably some kind of escrow, who knows) which then gets dispersed to their shareholders? What usually happens otherwise? Would they do partly google stock, etc? And each shareholder gets some kind of multiple? (you get your N amount of Wiz shares X .72 = your number of google sh…

They say that's an all-cash purchase. So it seems that they really put $32bn in the bank account.

Re: Google to buy Wiz for $32B

#78

Post by bhouston »

epolanski wrote: post #68
atonse wrote: post #65

This is probably a dumb question, but what does all cash mean? Does it literally mean that they are putting $32bn in Wiz's bank account (or probably some kind of escrow, who knows) which then gets dispersed to their shareholders? What usually happens otherwise? Would they do partly google stock, etc? And each shareholder gets some kind of multiple? (you get your N amount of Wiz shares X .72 = your number of google sh…

Acquisitions often involve swaps of shares.

The press releases say cash deal.

Re: Google to buy Wiz for $32B

#79

Post by exhibitapp »

atonse wrote: post #65

This is probably a dumb question, but what does all cash mean? Does it literally mean that they are putting $32bn in Wiz's bank account (or probably some kind of escrow, who knows) which then gets dispersed to their shareholders? What usually happens otherwise? Would they do partly google stock, etc? And each shareholder gets some kind of multiple? (you get your N amount of Wiz shares X .72 = your number of google sh…

In an all cash deal the Vendor (buyer) will purchase all shares of the Target (seller) for cash and cancel those shares. A substantial amount of the cash will be held back in escrow subject to a number of clauses and released at a future date.

This will protect the buyer against misrepresentations.

There are often also targets that have to be met to achieve the full purchase price but not always disclosed

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