Answers.com Acquired For $127 Million
The popular questions and answers site, Answers.com has announced they have been acquired by AFCV Holdings, LLC. for $127 million. AFCV Holdings is paying $10.50 per share for the outstanding shares.
“This is a great outcome for our shareholders,” said Bob Rosenschein, Founder, Chairman and CEO. “After an exciting six years as a public company, we are very pleased to achieve considerable value for our investors. The acquisition price of $10.50 per share represents a significant cash premium of approximately 33% over our 90-day volume-weighted average closing stock price.”
Mr. Rosenschein continued, “This agreement is also a positive for our community members. The integrity and commitment of our company to our products remain unchanged, as we continue our mission of creating the ultimate destination for answers.”
Personally, I wanted to wish a huge congratulations to the Answers.com team!
For the full press release click here.
Postscript: BusinessInsider reports Answers.com shareholders are going to try to prevent the deal from happening.
A source close to Outboard investments, which owns 9.2% of the company, told us, “There’s not a shot in the world this thing is going through. This is going up for auction or it’s not going down.”
Says a principle: “We got this news this morning with our cornflakes – on Yahoo. The company gave no indication that it was anywhere near making a deal with anybody or that it was even shopping it around.”
“We’re not agreeing to anything at this stage. We’re waiting for the fourth quarter outcome. All we’ve seen is less than bare bones. Our expectation is that on reflection, the board will reconsider and look for signifinantly higher price.”
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