Will you be paying in cash or stock? How companies buy other firms.
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It’s been a busy few weeks in the world of mergers and acquisitions. Xerox is considering a cash and stock offer for HP. Last Friday, Google said it’s buying Fitbit for $2.1 billion in cash. Not to mention the luxury giant LVMH, which said it’ll pay $14.5 billion in cash for Tiffany (Tiffany is reportedly asking for more). Deciding whether to pay cash, stock or a combination of the two can say a lot about both the deal itself and where companies think the broader economy might be headed.
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