I saw that there was a deal today… YOKU was buying TUDO. If you don’t cover the Internet companies from China you probably don’t know what either of these are. Even if you do cover the Internet companies from China you still may not know who they are.
That deal withstanding, Monday used to be called “Merger Monday” due to the large number of mergers and or acquisitions that were announced at the start of the week. Lately, we just haven’t see that much in the way of M&A.
The market’s move higher without much visibility for corporate managers translates into fewer deals as prices move higher without much clarity on how the target company is performing. Another reason for fewer deals is that managements may be expecting higher stock prices in the coming weeks and months and don’t want to leave that appreciation on the table.
What do you think is a good reason for the slowdown in M&A?
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Zacks Investment Research
