Why Criteo Stock Was on Fire This Week

French adtech company Criteo (CRTO 1.12%) was the subject of some fairly robust takeover speculation this week, and opportunistic investors piled into it on the hopes it would sell for a substantial premium. The in-demand shares were rising by almost 20% week-to-date as of early Friday morning, according to data compiled by S&P Global Market Intelligence.

An apparent buyout bid

That kicked off Monday afternoon, when Bloomberg published an article stating that investment firms Vista Equity Partners and Quinti Capital Partners were trying to acquire Criteo.

Image source: Getty Images.

Citing unnamed "people familiar with the matter," the news agency wrote that the two firms recently submitted a buyout offer valuing Criteo at more than 50% of its typical closing share price over the past few weeks.

Those sources added that Criteo management was still mulling over how to respond to the bid. Those people added that there is no guarantee a deal will be consummated. Bloomberg pointed out that the niche tech company has been approached by would-be suitors before.

None of the three businesses mentioned in the article has yet commented publicly on it.

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NASDAQ: CRTO

Criteo

Today's Change

(-1.12%) $-0.26

Current Price

$22.88

Key Data Points

Market Cap

$1.2BMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.Market cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.

Day's Range

$22.50 - $23.24

52wk Range

$15.57 - $26.52

Volume

472.9K

Avg Vol

354.6K

Gross Margin

53.96%

A history of saying no

Piecing this together, I'd say it's likely Criteo is expecting a sky-high premium for any buyout offer to have a fighting chance. While that dangles the possibility of a blowout deal showering shareholders with riches, I'd caution that management has rebuffed takeover bids before, so it's entirely realistic that it'll do so again.

Investing in this stock now is risky, then, especially if these apparent suitors end up empty-handed.

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