So Business Insider's Joe Weisenthal tweets:
Who will buy the FT? Maybe BI in a reverse merger?
— Joseph Weisenthal (@TheStalwart) November 6, 2012
Except, that a reverse merger is not just about a smaller firm taking over a larger firm, the smaller firm must be public and generally the larger firm moves in as officers of the smaller firm, once the merger is completed.
Business Insider is not public. Weisenthal does not know what the hell he is talking about.
A reverse takeover or reverse merger (reverse IPO) is the acquisition of a private company by a much smaller public company so that the private company can bypass the lengthy and complex process of going public. The transaction typically results in the reorganization and capitalization of the acquiring company, with the officers and shareholders of the larger company taking control.
But, hey I would like to see the gold-hating duo of Weisenthal and Henry Blodget approach FT about a reverse merger, just for the chuckles
Ha! Put them on the trash heap with Newsweek & the NYT's.
ReplyDeleteI do not know a thing about reverse mergers other than what I just read, but Wikipedia seems to indicate that the smaller company must be private, not public. So BI, being the smaller, private company, could do a reverse merger.
ReplyDeleteAm I missing something?
Pearson (FT) is public, and BI is private. A reverse IPO is the acquisition of a public company by a private company. I don't understand how Weisenthal is wrong.
ReplyDeleteHilarious how little these keynesians who pretend to be experts on the economy actually know about it.
ReplyDeleteGood call Bob. Also sometimes called a cheaters IPO. Its frightening to think how much business advice is handed out by clowns like this guy that make up what they don't know as they go. Sadly, some people actually act on what these nuts say.
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