Motley Fool Money Deal or No Deal?
Jun 23, 2023
Emily Flippen, a Senior Analyst at Motley Fool, and Matt Argersinger, also a Senior Analyst, dive into the current landscape of mergers and acquisitions. They discuss regulatory scrutiny on major players like Adobe and Microsoft and the implications for shareholders. The duo also sheds light on the impact of upcoming rate hikes and the housing market's persistent inflation challenges. Additionally, they explore dividend investing strategies, especially in the context of Schwab US Dividend Equity ETF and its appeal during market volatility.
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Homebuilding Surge
- Homebuilding surged despite rising rates, driven by a supply-constrained market.
- Existing homeowners are reluctant to sell due to low, locked-in mortgage rates, increasing demand for new homes.
Adobe-Figma Deal Scrutiny
- Adobe's acquisition of Figma faces EU regulatory scrutiny due to potential anti-competitive concerns.
- The high acquisition price (50x annual recurring revenue) and Figma's status as a major competitor raise doubts.
Microsoft-Activision Deal Uncertainty
- Microsoft's Activision acquisition faces a potential FTC block, leaving Activision's future uncertain.
- Activision, with a potential $3B breakup fee and strong recent performance, presents an interesting investment opportunity.