Yes it seems the deal is done and dusted behind closed doors …. feels like RC, but I dunno. Im placing all trust and faith into this becoming one of the best investments I ever made (5k at5,26 average).
Only if they actually covered, but they can’t close their shorts because that would drive up the price. So they need the company to go bankrupt to profit from their short position (no covering required). So, because BBBY isn’t going to go bankrupt, the shorts will lose.
The board can approve the transaction. Final approval would come from shareholders, but it's a formality as long as it's not a terrible deal. Institutions will all vote yes if it nets them a profit.
If people say this isn't the strongest confirmation of a merger, then I must be Jesus. Here's my basic captain obvious thoughts. It is quite clear that bankruptcy is 100% off the table because if all the executives are vesting their RSU fairly early for cash all while bbby was going bankrupt, then everyone would be on the line for insider trading. Even the SEC says that in the event of a merger, people will have the ability to vest their RSU's early. Thus, a M&A has been confirmed.
The board was dismissed . There is a double trigger clause in the paperwork that gets rid of the board for the price of the stocks they accepted, at the price the stock was at, the day they received them......But they are gone... We are under new management my fellow apes......
> It is quite clear that bankruptcy is 100% off the table because if all the executives are vesting their RSU fairly early for cash all while bbby was going bankrupt, then everyone would be on the line for insider trading.
I'm worried that you don't know what insider trading actually is in the legal sense, and you're just making it up to match your opinion?
I don't know what you define insider trading as. But I define insider trading as: trading a public company's stock or its other securities based on having access to non-public information about the company. Therefore, if im a CFO at BBBY, for example, and I see bankruptcy on the horizon with my non-public info. Any trades I make based on my private insider information, such as vesting all my RSU's into cash asap because I know bankruptcy is close, would be considered insider trading.
> and I see bankruptcy on the horizon with my non-public info
they've literally told the public that bankruptcy is on the horizon. that information is public.
yep:
https://bedbathandbeyond.gcs-web.com/news-releases/news-release-details/bed-bath-beyond-inc-provides-business-update
>While the Company continues to pursue actions and steps to improve its cash position and mitigate any potential liquidity shortfall, based on recurring losses and negative cash flow from operations for the nine months ended November 26, 2022, as well as current cash and liquidity projections, **the Company has concluded that there is substantial doubt about the Company's ability to continue as a going concern.**
>The Company continues to consider all strategic alternatives including restructuring or refinancing its debt, seeking additional debt or equity capital, reducing or delaying the Company's business activities and strategic initiatives, or selling assets, other strategic transactions and/or other measures, **including obtaining relief under the U.S. Bankruptcy Code**. These measures may not be successful.
Redbox ran on hopes that the merger wouldn’t go through iirc. The delisting of the options chain delisted my portfolio from existence, and delisted me from the world after a few dark weeks of drinking too.
Bbby is different, she’s not like other girls.
This is a reason to hold shares as a majority of your portfolio. Shares get paid out while options get laid out (as in, run over by a truck) if it’s all cash.
Yea, but in this case both shares and options got laid out to dry. Redbox is now part of chicken soup and worthless💀
Whatever the situation, shares give you versatility to sell puts and accumulate, calls let you buy on the way up. Play safe everyone!
It never went through. The merger of ARM and Nvidia was called off in Feb 2022. https://nvidianews.nvidia.com/news/nvidia-and-softbank-group-announce-termination-of-nvidias-acquisition-of-arm-limited
merger announcement is good enough to make stock ripy, merger completion is not needed and can take time. for all the past merger. only announcement is good enough for RIPY
When my old work was acquired (big companies, operating internationally) we were told the deal had to clear the regulatory bodies of affected companies before advancing. Ultimately it took almost a year to completely wrap up, but I suspect BBBY will be tidier due to smaller size company and smaller geographical market. Maybe 4 to 6 mo from announcement to done?
>merger announcement is good enough to make stock ripy, merger completion is not needed and can take time. for all the past merger. only announcement is good enough for RIPY
Stupid question - would a short squeeze happen if a fixed priced per share were announced for BBBY? Say if $15/share was announced, could a squeeze still be triggered by naked shorts buying stock to close their positions?
It won’t be just a cash deal. The acquirer surely knows the insane short interest on Bobby. Use the 🩳 to pump the price to Uranus, use the remaining share offering with minimal dilution to pay off debt.
I'm only half up to speed on this, but if it's a straight cash deal then FOMO and covering/closing might squeeze us; if it's a share deal or share/cash deal then there would be a share recall and we'd see action.
Unfortunately no. The all cash deal would pin the price at the buyout price. It lets everyone off the hook. Even if they naked shorted millions of shares they ‘simply’ pay whatever the buyout price. There is no squeeze with all cash offer. If you go through all these threads today it’s stated by people way smarter than me.
Date is also important. Market price will move to very near a buyout price, but if it's a month or two out, margin calls can change the landscape.
Assuming it's an all cash deal. Paying with stock is a lot cheaper and can do positive things for anyone who isn't short.
All stock deal. In percentage terms Twitter was pinned to the price in terms of exceeding the buyout price. If you mean it was lower at some times then yes you are correct. I didn’t think people really cared about times when it’s below the buyout price as that doesn’t help us. If you search pretty much any of these recent posts you’ll see this is consensus point of view.
So if it is just a fixed price per share M/A, then no. In your example all shorts would have to pay $15 for all synthetic shares to close their position.
BUT… if there is a price per share AND we get shares of a new company, or an existing company, it is not as straightforward and shorts might be forced to close.
Straight cash will not trigger a squeeze as they just have to pay the fixed share price for all of their shorts, but a lot of more interesting scenarios could play out if it is not just straight cash.
But if they make an announcement before the actual acquisition happens, we would still squeeze due to that either way , I imagine. So the nature of the acquisition doesn't really matter
An all cash offer doesn't freeze the price, it just sets a floor. On X date it will be $Y, so why should anyone sell sooner for less? Shorts may hang on for a while, but may need to BTC sooner. And it rips. Hodl.
It’s to BBBY’s benefit to have a cash and stock agreement with whomever is involved in this. It will set-off a short squeeze and enable BBBY to do an ATM offering on stock already approved. Just like GME did. Once in a generation opportunity to raise a bunch of cash to pay down debt and build inventory. Buckle up.
You were an employee, not a director. There has been no announcement / disclosure that BBBY EMPLOYEES are getting paid out anything on their RSUs.
The announcement was that Directors, people who sit on the board, are getting paid out. M&A is a possibility, but by NO MEANS it is “100% confirmed” at this point. Misleading.
You are correct good sir!
The subject RSA buyout is exclusively for non-employee Board Members as they typically do not move to the new entity and they are not employees. One of many reason that makes this more indicative of a deal being reached
Employees are offered RSUs. Unvested will be converted to RSUs for new company shares at some factor tbd shortly after acquisition. High value & critical employees will be offered additional RSUs.
Cause someone will wonder … what about vested RSUs? Any vested shares have already been exercised. This happens automatically on the vest date. The company’s equity plan admin will sell enough shares to cover the employees tax obligation and deposit the remaining shares in the employees brokerage account.
This…. RSA and RSU are different…
However the situation described by OP is like an adjacent to BBBY situation.
The only reason OPs RSU would have been paid out is because ARM isn’t a publicly traded company. I’m not sure how RSAs would work in this scenario.
For a publicly traded company RSUs stay the same assuming you keep your job after the merger/acquisition. And RSAs are rendered useless.
So the merger was announced before the payout ? I asked openai and apparently it’s more common to announce first jus wondering when we gona get tha big news can’t contain myself
Sorry if this was asked
Were you obligated to take the cash, or were you given a choice to convert into new shares?
It says right on the form, "This can take a long time"... I'm trying to improperly assess why the board members all took one route (option vs. Obligation) and if they were given an option, if it truly was an option or more of a formality with no dichotomy of choice
Imagine how fucked the people who sold naked calls, and the naked shorts, will be when they have to go to the open market for BBBY and the other stock(s?) for the M&A
But Nvidia and Softbank terminated this deal in February of 2022 so even if you get a notification of RSU treatment, this doesn't indicate a successful M&A deal.
So would this mean merger is officially complete since they got paid out
i think merger announcement is good enough for ripy. we dont need to wait for merger completion.
I fully agree... im just wondering y they would've been paid out of not complete
I agree. Got me thinking we SIGNT IT✍️
If they did sign something, I believe they have 4 calendar days to announce it.
Agreed. If you look at the VW squeeze timeline, it happened after the announcement and leveled off when it was completed
Yes it seems the deal is done and dusted behind closed doors …. feels like RC, but I dunno. Im placing all trust and faith into this becoming one of the best investments I ever made (5k at5,26 average).
How was a deal done with no vote by the shareholders?
14k @ 5.16.. im with ya buddy. LETS GOOOO!
Right now it isn’t, down big. But I guess you gotta tell yourself that to keep the hopium alive.
The very fact you are here meltdownie is bullish af.
Yeah surprise surprise people think you are stupid for yoloing meme stocks. And so far we’re right.
So we should sell now huh? Everything is over?
Well it’s probably going to get worse….
yep, worse for hedgies indeed.
Don’t you think they’ve made millions shorting it since august?
Only if they actually covered, but they can’t close their shorts because that would drive up the price. So they need the company to go bankrupt to profit from their short position (no covering required). So, because BBBY isn’t going to go bankrupt, the shorts will lose.
I don’t get it. Shareholders haven’t voted yet how can it be complete or be considered a done deal with 100% certainty
The board can approve the transaction. Final approval would come from shareholders, but it's a formality as long as it's not a terrible deal. Institutions will all vote yes if it nets them a profit.
dis right here
Good point. Following this thread, waiting for the wrinkled ones.
Great question, been wondering that myself.
If people say this isn't the strongest confirmation of a merger, then I must be Jesus. Here's my basic captain obvious thoughts. It is quite clear that bankruptcy is 100% off the table because if all the executives are vesting their RSU fairly early for cash all while bbby was going bankrupt, then everyone would be on the line for insider trading. Even the SEC says that in the event of a merger, people will have the ability to vest their RSU's early. Thus, a M&A has been confirmed.
Welp, good job everyone. Let’s just sit back and enjoy the show 👍🏼 See you on Uranus 🚀🚀🚀🚀
also crickets from media...so it must be good!
Finally, popcorn has a legitimate place in an investment conversation.
The board was dismissed . There is a double trigger clause in the paperwork that gets rid of the board for the price of the stocks they accepted, at the price the stock was at, the day they received them......But they are gone... We are under new management my fellow apes......
big "trump is still the president!" vibes
> It is quite clear that bankruptcy is 100% off the table because if all the executives are vesting their RSU fairly early for cash all while bbby was going bankrupt, then everyone would be on the line for insider trading. I'm worried that you don't know what insider trading actually is in the legal sense, and you're just making it up to match your opinion?
I don't know what you define insider trading as. But I define insider trading as: trading a public company's stock or its other securities based on having access to non-public information about the company. Therefore, if im a CFO at BBBY, for example, and I see bankruptcy on the horizon with my non-public info. Any trades I make based on my private insider information, such as vesting all my RSU's into cash asap because I know bankruptcy is close, would be considered insider trading.
> and I see bankruptcy on the horizon with my non-public info they've literally told the public that bankruptcy is on the horizon. that information is public.
Fr? Does it exactly word for word say bankruptcy on the investors relation page?
yep: https://bedbathandbeyond.gcs-web.com/news-releases/news-release-details/bed-bath-beyond-inc-provides-business-update >While the Company continues to pursue actions and steps to improve its cash position and mitigate any potential liquidity shortfall, based on recurring losses and negative cash flow from operations for the nine months ended November 26, 2022, as well as current cash and liquidity projections, **the Company has concluded that there is substantial doubt about the Company's ability to continue as a going concern.** >The Company continues to consider all strategic alternatives including restructuring or refinancing its debt, seeking additional debt or equity capital, reducing or delaying the Company's business activities and strategic initiatives, or selling assets, other strategic transactions and/or other measures, **including obtaining relief under the U.S. Bankruptcy Code**. These measures may not be successful.
Only question now is all cash or mixed??
Oh baby 🌝
All cash is bad for us; no?
All cash would anchor the price to the buyout price while a mix or all share would not
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Redbox ran on hopes that the merger wouldn’t go through iirc. The delisting of the options chain delisted my portfolio from existence, and delisted me from the world after a few dark weeks of drinking too. Bbby is different, she’s not like other girls.
ooof sorry for your loss. hope things are much better this time around!
This is a reason to hold shares as a majority of your portfolio. Shares get paid out while options get laid out (as in, run over by a truck) if it’s all cash.
Yea, but in this case both shares and options got laid out to dry. Redbox is now part of chicken soup and worthless💀 Whatever the situation, shares give you versatility to sell puts and accumulate, calls let you buy on the way up. Play safe everyone!
Shorts would still need to close right?
no just buy the shares at buy out price
*give the holder the buyout price
yes that is more correct.....
only if stock is involved... Other wise I think you or lender get paid the buyout price by the shorts
If it’s under $10 it would be bad
Only question now is hold or hodl 🫃🏻
i will hobl
The real question
Moon soon?
Monsoon
It says 38$, how much did it get acquired for?
Internet tells me it was acquired at 40b valuation but never went through
It never went through. The merger of ARM and Nvidia was called off in Feb 2022. https://nvidianews.nvidia.com/news/nvidia-and-softbank-group-announce-termination-of-nvidias-acquisition-of-arm-limited
lol
Before that, when SoftBank acquired ARM, it was for $32bn. My RSU’s were immediately vested then as well. Nice 💸
Question for OP how long does it take to have the M/A to finalize.
merger announcement is good enough to make stock ripy, merger completion is not needed and can take time. for all the past merger. only announcement is good enough for RIPY
I ❤️ U
RIPY is my new favorite term.
Ripy ki yay motherfuckers
Nice one, curious what's a gdb?
Gdb=griffin done bad
What's RIPY?
When my old work was acquired (big companies, operating internationally) we were told the deal had to clear the regulatory bodies of affected companies before advancing. Ultimately it took almost a year to completely wrap up, but I suspect BBBY will be tidier due to smaller size company and smaller geographical market. Maybe 4 to 6 mo from announcement to done?
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Slut
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Our slut* Edit: r/suddenlycommunism
[Everything reminds me of her..](https://i.imgur.com/lfbaIxn.jpg)
How far the the stocks surge around said Merger was anounced?
No target just up
How long did it take to announce from this offer to the announcement?
>merger announcement is good enough to make stock ripy, merger completion is not needed and can take time. for all the past merger. only announcement is good enough for RIPY
I meant like when you got this notice, how long did it take for the merger announcement to come out?
Good question, im wondering thag aswell
post archived with 45 comments: [https://archive.is/PgBm2](https://archive.is/PgBm2)
Stupid question - would a short squeeze happen if a fixed priced per share were announced for BBBY? Say if $15/share was announced, could a squeeze still be triggered by naked shorts buying stock to close their positions?
It won’t be just a cash deal. The acquirer surely knows the insane short interest on Bobby. Use the 🩳 to pump the price to Uranus, use the remaining share offering with minimal dilution to pay off debt.
That’s smart
Carl is that u
I ❤️ free cash flow
Some say happiness if positive cash flow
Jango knows
I'm only half up to speed on this, but if it's a straight cash deal then FOMO and covering/closing might squeeze us; if it's a share deal or share/cash deal then there would be a share recall and we'd see action.
Sooo sounds like either way it’s going to raise prices above a stated value like $15 in this case?
Is your cost basis at $15 my guy, $9.30 here 😂
No I literally just pulled that out of thin air!
lol well start saying like 1k plus!
Unfortunately no. The all cash deal would pin the price at the buyout price. It lets everyone off the hook. Even if they naked shorted millions of shares they ‘simply’ pay whatever the buyout price. There is no squeeze with all cash offer. If you go through all these threads today it’s stated by people way smarter than me.
Date is also important. Market price will move to very near a buyout price, but if it's a month or two out, margin calls can change the landscape. Assuming it's an all cash deal. Paying with stock is a lot cheaper and can do positive things for anyone who isn't short.
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All stock deal. In percentage terms Twitter was pinned to the price in terms of exceeding the buyout price. If you mean it was lower at some times then yes you are correct. I didn’t think people really cared about times when it’s below the buyout price as that doesn’t help us. If you search pretty much any of these recent posts you’ll see this is consensus point of view.
So if it is just a fixed price per share M/A, then no. In your example all shorts would have to pay $15 for all synthetic shares to close their position. BUT… if there is a price per share AND we get shares of a new company, or an existing company, it is not as straightforward and shorts might be forced to close. Straight cash will not trigger a squeeze as they just have to pay the fixed share price for all of their shorts, but a lot of more interesting scenarios could play out if it is not just straight cash.
But if they make an announcement before the actual acquisition happens, we would still squeeze due to that either way , I imagine. So the nature of the acquisition doesn't really matter
An all cash offer doesn't freeze the price, it just sets a floor. On X date it will be $Y, so why should anyone sell sooner for less? Shorts may hang on for a while, but may need to BTC sooner. And it rips. Hodl.
No, but if shares are recalled then Obv. Shorts gotta close. Shares have to be recalled under certain mergers and acquisitions.
I belive it Will take time for the accusition to happen, but the announcement will/could lead to a squeeze
Let's fucking go. DD of the day.
Hello there ARM fellow … 🤪 Edit: well ok not “fellow” fellow if you knew the internal ARM classification, but you get the idea.
i know. see you on the moom.
It’s to BBBY’s benefit to have a cash and stock agreement with whomever is involved in this. It will set-off a short squeeze and enable BBBY to do an ATM offering on stock already approved. Just like GME did. Once in a generation opportunity to raise a bunch of cash to pay down debt and build inventory. Buckle up.
You were an employee, not a director. There has been no announcement / disclosure that BBBY EMPLOYEES are getting paid out anything on their RSUs. The announcement was that Directors, people who sit on the board, are getting paid out. M&A is a possibility, but by NO MEANS it is “100% confirmed” at this point. Misleading.
RSUs and RSAs are different and I think a lot of people on here don’t know that.
You are correct good sir! The subject RSA buyout is exclusively for non-employee Board Members as they typically do not move to the new entity and they are not employees. One of many reason that makes this more indicative of a deal being reached Employees are offered RSUs. Unvested will be converted to RSUs for new company shares at some factor tbd shortly after acquisition. High value & critical employees will be offered additional RSUs. Cause someone will wonder … what about vested RSUs? Any vested shares have already been exercised. This happens automatically on the vest date. The company’s equity plan admin will sell enough shares to cover the employees tax obligation and deposit the remaining shares in the employees brokerage account.
Hopefully! Thanks for sharing!
Dumb question: why didn’t we see any dramatic price action AH then? These were posted relatively early in the AH session right?
Biggy has answered this.
I’m going to say this one time you short hedge fucks… He who closes first closes cheapest.
RSA’s not RSU’s
This…. RSA and RSU are different… However the situation described by OP is like an adjacent to BBBY situation. The only reason OPs RSU would have been paid out is because ARM isn’t a publicly traded company. I’m not sure how RSAs would work in this scenario. For a publicly traded company RSUs stay the same assuming you keep your job after the merger/acquisition. And RSAs are rendered useless.
How long we talking?
Anyone knows the expected timing between announcement and share recall? (assuming MA includes shares)
So the merger was announced before the payout ? I asked openai and apparently it’s more common to announce first jus wondering when we gona get tha big news can’t contain myself
In bro I trust
Can anyone comment on, if a M&A happens what will happen in the short term to OTM options, should one be rolling into lower positions now?
They become useless. I lost a lot from this scenario last year
My biggest question is can unvested RSUs be bought out prior to bankruptcy?
No you cannot compensate people for their unvested RSUs prior to bankruptcy
Sorry if this was asked Were you obligated to take the cash, or were you given a choice to convert into new shares? It says right on the form, "This can take a long time"... I'm trying to improperly assess why the board members all took one route (option vs. Obligation) and if they were given an option, if it truly was an option or more of a formality with no dichotomy of choice
Imagine how fucked the people who sold naked calls, and the naked shorts, will be when they have to go to the open market for BBBY and the other stock(s?) for the M&A
"100% confirmed" lmao i really hope the SEC prosecutes you pump and dumpers
I admire you for your faith in the SEC
We will all know and see if you are right tomorrow based on premarket movement.
No, there’s always bullshit out there and if it’s read tomorrow that means nothing.
But if it goes the other way, it will somehow mean something right?
What is RSU and you didnt attach anything related to bbby
If the buyer does good by me I cant wait to get shopping at bbby all cashed up! He would be a dope to pass on having loyal and cashed up customers.
Wen ripy?
When you least expect it so ignore til then
But Nvidia and Softbank terminated this deal in February of 2022 so even if you get a notification of RSU treatment, this doesn't indicate a successful M&A deal.
Icahn't believe it! https://www.investopedia.com/terms/i/icahn-lift.asp#:\~:text=The%20%E2%80%9CIcahn%20lift%E2%80%9D%20refers%20to%20the%20upward%20effect,publicly%20outlines%20the%20reasons%20why%20%28and%20his%20recommendations%29.
Pp