Happy Merger Monday!
Jim Cramer is weighing in LVMH's (LVMUY) deal to buy Tiffany's (TIF) - Get Report , Charles Schwab's (SCHW) - Get Report deal to buy TD Ameritrade (AMTD) - Get Report and why Twitter (TWTR) - Get Report is going to lose this election.
What's Going on With LVMH and Twitter?
LVMH, the French group behind luxury labels such as Christian Dior, Fendi, and Givenchy, said it would pay $135 a share for Tiffany a $10 premium to the stock's Friday closing price.
"Tiffany has been focused on executing on our key strategic priorities to drive sustainable long-term growth. This transaction, which occurs at a time of internal transformation for our legendary brand, will provide further support, resources, and momentum for those priorities as we evolve towards becoming The Next Generation Luxury Jeweler," said Tiffany CEO Alessandro Bogliolo. "As part of the LVMH group, Tiffany will reach new heights, capitalizing on its remarkable internal expertise, unparalleled craftsmanship, and strong cultural values."
Analysts have noted that more than half of Tiffany's sales come from outside the U.S., providing LVMH with both a doorway into the domestic luxury market while supporting the group's growth in key markets such as Europe and China.
Charles Schwab's Buying TD Ameritrade
Charles Schwab is buying TD Ameritrade in an all-stock deal valued at approximately $26 billion, the company confirmed on Monday.
Under the agreement, TD Ameritrade stockholders will receive 1.0837 Schwab shares for each TD Ameritrade share, representing a 17% premium over the 30-day volume-weighted average price exchange ratio as of Nov. 20.
The takeover, which first surfaced as a rumor last week, follows last month's move by Schwab to eliminate commissions for its retail clients, setting off a so-called "zero commissions" war in the online brokerage space that hammered the sector and caused major changes to earnings forecasts.
"With this transaction, we will capitalize on the unique opportunity to build a firm with the soul of a challenger and the resources of a large financial services institution that will be uniquely positioned to serve the investment, trading and wealth management needs of investors across every phase of their financial journeys," said Schwab CEO Walt Bettinger.
How Is Twitter Losing This Election?
"It's a certainty that Alphabet (GOOGL) - Get Report will get some sort of deal, too. Amazingly, the most technically challenged outfit and the one that would have had the most to gain, Twitter, has taken itself out of the race already in a decision that, from a business perspective, is now instantly regrettable," wrote Cramer. "Why would Facebook be the best? First, it's got the biggest reach. Facebook can be targeted geographically to flood the zone so that you wouldn't know anything but Bloomberg if you were an Instagram regular. Second, an odd one, but Bloomberg has so much money that he can design great looking ads, something that Facebook really wants."
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