GAME is also thinking of expanding by acquiring Online All the Time, Inc. (Online) te...
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GAME is also thinking of expanding by acquiring Online All the Time, Inc. (Online) te accelerate its streaming gaming platform. Assume the pre-merger (fair value) Online is $25.00 per share and there are 2 million shares oustanding, Online has no debt and since it is in high growth mode, there is no excess cash. GAME believes that combining the companies would be very synergistie and anticipates that after tax profit of the combined entity would be 10 million. Irregardless of your prior answers, assume that the market is fairly valuing game at $20.00 per share there are 100 million shares outstanding and $187.5 million of debt and $250 of excess o 6. What is the proforma value of the combined firm (including debo: 1.997.550.000 6. What is the most (per share that GAME should pay to Online's Shareholders? $30.00 be. What is the least (per share that Online's Shareholders should neept? $25.00 6d. Please list 1 pro and I con GAME should consider before entering into this transaction, Qualitative GAME is also thinking of expanding by acquiring Online All the Time, Inc. (Online) te accelerate its streaming gaming platform. Assume the pre-merger (fair value) Online is $25.00 per share and there are 2 million shares oustanding, Online has no debt and since it is in high growth mode, there is no excess cash. GAME believes that combining the companies would be very synergistie and anticipates that after tax profit of the combined entity would be 10 million. Irregardless of your prior answers, assume that the market is fairly valuing game at $20.00 per share there are 100 million shares outstanding and $187.5 million of debt and $250 of excess o 6. What is the proforma value of the combined firm (including debo: 1.997.550.000 6. What is the most (per share that GAME should pay to Online's Shareholders? $30.00 be. What is the least (per share that Online's Shareholders should neept? $25.00 6d. Please list 1 pro and I con GAME should consider before entering into this transaction, Qualitative
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