Between the possible catalysts that actions haveone of the most interesting is found in the business transactions related to mergers and acquisitions. Thus, there are many investors who take positions in companies that can be boughtthat is, they can be object of a takeover bid.
And with these premises in mind, experts from TradeSmith stand out three American companies that could skyrocket on Wall Street by having “unique value” businesses that would complement the areas of activity of large multinationals.
It should be noted that for an acquisition to take place, the company interested in sealing the deal usually pays a generous premium over the market price. For example, Microsoft reached an agreement a few months ago for the integration of the video game manufacturer Activision Blizzard after offering a 45% premium.
However, one should also be aware that not all operations come to fruition and there is no guarantee that one company will be bought by another in the future.
WWE AND THE ALLURE OF WRESTLING
Still, TradeSmith believes that WWE is one of the companies that could have several suitorssuch as Amazon, Walt Disney, Alphabet, Apple or Netflix. The media and entertainment group, very popular among wrestling fans and also present in other audiovisual fields, such as cinema or American football, could contribute quality content to the most important video platforms in the world at a time when the competitiveness between the giants of the sector is maximum.
Furthermore, TradeSmith stresses that the company is looking for strategic alternatives to maximize value for its shareholders and that its fundamentals are “excellent”.
AMC NETWORKS AND THE POPULARITY OF ITS CONTENT
The second name that appears on this list of ‘opable’ companies is AMC Networksa producer of multimedia content and distributor of television channels, famous for being responsible for series como ‘Mad Men’, ‘Breaking Bad’ o ‘The Walking Dead’.
Nevertheless, this title “presents more risks”according to the aforementioned analysts, given the difficulties it has been going through in recent months.
THE VIRIDIAN BUSINESS COULD BE ATTRACTIVE FOR J&J OR SANOFI
Finally, these experts focus on Viridian Therapeuticsa biopharmaceutical company that is developing treatments for people with thyroid eye diseasewith three programs in various stages of development.
As pointed out by TradeSmith, this company could fit into the future plans of Johnson & Johnson or Sanofiwhat They already tried to buy Horizon, a competitor to Viridian. Even so, “it is a more favorable value for investors with a high tolerance for risk,” they conclude from the firm.
