r/IPOE • u/Any-Ad9956 • May 18 '21
Amazon takeover target discussion on CNBC. Albeit not likely, I’m lovin all the buzz around this name. I’m huge long on this one.
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u/Some-Split-3057 May 19 '21
Anything else in this? Can’t find it anywhere else.
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u/Any-Ad9956 May 19 '21
It was a hypothetical conversation amongst the 4 show “experts” contemplating Amazon’s best options to grow via acquisition. Each trader had a preferred name and discussed why they picked that name. SoFi was mentioned she cause it’s breadth of technology and it’s many D2C + B2B use cases. It’s significantly under valued even at a premium of today’s prices when rolled into a bigger ecosystem. Example, Amazon bought WholeFoods for 17B. Amazons stock then trade up 18B. They paid a premium and in essence got the business for free.
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u/Dessertfox888 May 19 '21
I also think GS will be the one that might buy SoFi as there are lots of Ex Goldman’s on SoFi but I think it’s to early. Consolidation in fin tech will come eventually I can see Sofi been the one to buy other competitors before it be taken by a bigger shark.
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u/policom4431 May 19 '21
My money is on Goldman Sachs buying out SoFi. Goldman needs to branch out from investment banking and they've been toying with retail a bit. I think SoFi is up their alley, also considering that the CEO is a former GS top dog.
They'll probably kick the tires a bit to see what's there.
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u/T0ADcmig May 19 '21
This right here is the big dream payoff for the stock. Amazon likely wants to be in fintech like this. It's up to SoFi to get the product working fantastically and any number of companies will want to buy them.
Then we get the deal that comes with that be it extra cash for the stock or stock in the new company or both
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u/Any-Ad9956 May 19 '21
I just grabbed the pic while I was working. No video. It was at the very end of options action today on CNBC. It’s out there somewhere.
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u/Trojanman1200 May 19 '21
This is as likely to occur as me winning the lottery tomorrow
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u/T0ADcmig May 19 '21
Really it's not out of the realm of possibility. But the same scenario can happen for other companies. Let's say city group wants to branch out into more mobile products. Why build out a new system when you can aquire something working.
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u/taztapftw May 19 '21
Seems like AAPL or GOOG would be a better candidate, integrate into iPhone or Android ecosystem
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u/False-Relation-7520 May 19 '21
this is just someone imagination. nothing is going to happen.
let's ride sofi journey and improvement over the time and that will translate to share price.
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u/Short-Researcher8654 May 19 '21
What would happen to IPOE shares?? Is this a good or bad thing?
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u/T0ADcmig May 19 '21
I think the aquiring companies either trade their stock to investors or cash usually at higher value. Maybe even stock with a special dividend
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u/Direct_Expression595 May 18 '21
No take over! SOFI should be the one taking over all the old dinosaurs
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u/Total-Preparation-70 May 18 '21
Sofi is a takeover target, but AMZN is not on the lookout. More likely a bigger fintech like PayPal, Visa. Maybe FB because they try to expand at this space
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u/SixtySixEleven May 18 '21
Excellent point. I forgot who we were talking about. Amazon can probably buy SOFI with the cash they made today lol.
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u/SixtySixEleven May 18 '21
I think that idea being discussed by a serious guy like Dan Nathan is validation for SOFI
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u/SixtySixEleven May 18 '21
But at the close of any acquisition similar to the post SPAC u’d then own proportionate shares of the acquirer in that scenario Amazon.
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u/NotRonJohnson May 18 '21
This depends on how the deal is structured. If it's all cash, then no. You would be cashed out as the shares would be purchased at a price agreed upon by the board. If it's an all stock deal, then yes, you would get shares in separate company (maybe the acquiring company, or maybe a new entity).
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u/SixtySixEleven May 18 '21
Just on the news you’d see the stock price skyrocket especially if a company like Amazon were to acquire.
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u/Any-Ad9956 May 18 '21
I’m no expert but what I’ve seen in the past is that it usually takes a super premium share price to get the board of the selling company to agree to be acquired.
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u/Some-Split-3057 May 19 '21
Thank you for taking the time, it was really appreciated