Leaf Group Ltd. (LEAF) stock recently traded at $8.54 which is a 21.19% upward movement. The LEAF stock previously closed at 7.03$.
This recent positive movement in the LEAF stock was due to the announcement by the Leaf Group Ltd. about its acquisition by the Graham Holdings Company (GHC).
LEAF Stock’s operational background
Leaf Group Ltd. is a consumer internet company that focuses on building allows creators to build an enduring brand and help target the right market for the brand. This allows for the people passionate about such particular to create a community and grow into a lifestyle change. LEAF has diversified its portfolio of digital marketing by incorporation of vide range of companies from fitness and wellness to home, design, and art. Most notable companies for which LEAF has provided services are Well+Good, MyPlate App, Saatchi Art, Society6, and Hunker.
Grahams Holdings Company’s operational background
Grahams Holdings Company (NYSE: GHC) is a holding company that has diversified segments of operations including educational services, digital and local news, tailored- Manufacturing, automotive, television broadcasting, service leaders, and home health.
GHC acquires Leaf Group for all-cash premium valued at $323 million
The definitive agreement between LEAF stock and Graham Holdings will allow the latter to acquire all of the outstanding shares of the common stock of Leaf.
These LEAF stock are valued at $8.50 per share and the agreement includes an all-cash transaction of the common stock at the given price, valuing the total at $323 million.
The Leaf Group of Directors received a written proposal from Graham Holdings which discussed the acquisition of the Leaf Group for $8.50 per share in cash. The Leaf Group of directors did not directly accept the offer. They decided to maximize the offer by contacting other strategic buyers and compared the interest offers then finally realized that the $8.50 per share in cash maximizes value for Leaf Group shareholders.
This price per share to be paid in the transaction now represents a premium of approximately 21% to the closing price of Leaf Group common stock on 1 April 2021 and a 35% premium to the 90-day volume weighted average trading price of $6.30 per share.
Future stance for Leaf Group’s current team
The CEO of Leaf group, Sean Moriarty has been anticipated to maintain their roles even after the merger and similarly the high executives will continue to stay in the company. The CEO of Graham’s Holdings Company, Timothy J. O’Shaughnessy, believes that maintaining the existing team of executives will maintain the strong momentum of the Company which it has generated since the past year and look forward to drive this momentum into more profitable growth.