gahnzz Posted January 26, 2012 Share Posted January 26, 2012 This morning, I heard THQ stock is down to $.70/share due to the recent news around their financial woes and the potential closing of the studio. When they get bought (which is inevitable with their catalogue including Saint's Row) does any stock held by a given individual convert to the comparative amount of the buyer's stock (i.e. EA)? Just curious before I make a purchase... Link to comment Share on other sites More sharing options...
Vagrant0 Posted January 27, 2012 Share Posted January 27, 2012 This morning, I heard THQ stock is down to $.70/share due to the recent news around their financial woes and the potential closing of the studio. When they get bought (which is inevitable with their catalogue including Saint's Row) does any stock held by a given individual convert to the comparative amount of the buyer's stock (i.e. EA)? Just curious before I make a purchase...Pretty sure the answer is no. This is why the stock is so low. Once they get bought out the stock is virtually worthless unless they only sell part of the company and a few IPs but remain under the same name and ownership. But not really an expert. Link to comment Share on other sites More sharing options...
Syco21 Posted January 27, 2012 Share Posted January 27, 2012 The company would make you an offer for your shares. I really hope they don't get bought out. The lady thing this industry needs is for EA to rape and pillage another great studio. Link to comment Share on other sites More sharing options...
JimboUK Posted January 27, 2012 Share Posted January 27, 2012 I wouldn't go anywhere near them at the moment , several buyers may appear and then you may be looking at a profit if they compete for shares, then again if no one is interested you'll lose out badly. There's a reason why their stock is that low. Link to comment Share on other sites More sharing options...
jaysus Posted January 28, 2012 Share Posted January 28, 2012 buying those stocks makes him own part of that company and it can not be completely sold until he sells his, EA would get a majority and hence could basicly do whatever they wanted with the company but they couldnt simply "dissolve" or "assimiliate" it anymore... it would most likely become a subsidiary of EA and hence the old stocks would keep their value and could probably rise againhowever they could go for bankrupcy and destroy the copmpany on intent to get rid of people like you and simply rip its core out and put it into EA by taking over employees and "buying" the brand names etc from themselves :/ you do not however simply get EA shares in exchange for yours automaticly, maybe EA would offer shares in exchange but i doubt that Link to comment Share on other sites More sharing options...
Dark0ne Posted January 28, 2012 Share Posted January 28, 2012 I recently had this situation arise with one of the stocks in my portfolio. I'm heavily invested in oil shares, especially North Sea oil, and a big Norwegian company came in for a stock buyout of one of the companies I am invested in. You get two options; you can either sell your shares at the price the buying company is offering or you can take shares in the buying company equal to the amount you would get if you sold your shares in the current company, at the buying company's price. Typically a buying company will offer a price between 10 - 25% higher than the current share price of the company they are planning to buy. This is to sweeten the deal and get on board all the major stock holders. They only need 51% of the stock to gain control of the company, so they don't need YOUR approval to go ahead with the deal. On top of this, the share price might rise above this buy price after it's been announced in an RNS as investors speculate on whether another company will make another, better, offer. It will then be your decision to sell at the time you think is best, or to take the shares the buying company is offering. Your strategy will depend on whether you have long term or short term goals. Link to comment Share on other sites More sharing options...
gahnzz Posted January 28, 2012 Author Share Posted January 28, 2012 Thanks all... that clears it up. I'm just going to sit on the sidelines this time... too many factors right now. Might pick it up later if it starts to improve... Link to comment Share on other sites More sharing options...
jaysus Posted January 28, 2012 Share Posted January 28, 2012 btw... fish is dying out... will prolly get pricey ;) Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now