Merger Arbitrage Mondays – The Twitter – Musk Saga Unfolds

Merger activity remained steady last week with four new deals announced and two deals completed. Two of the four deals announced were potential deals in the works.

The month of April ended with 16 new deals announced for an aggregate deal value of $92.92 billion. Elon Musk’s acquisition of Twitter (TWTR) announced last Monday was the largest deal announced last week and the most talked about deal this year.

Twitter (TWTR)

Looking back over the years, I have written about Twitter multiple times going all the way back to 2009. In an article titled “Customer Service ala Twitter Style“, I had written about Twitter, a micro-blogging site that had exploded in popularity and more than doubled its unique visitors in March 2009 to 9.3 million. I was reminiscing about the company Kitchenette SF, that was discussed in the customer service article, with a friend and ex-colleague recently and neither of us could remember the name of that pop-up food truck. In 2017, I wrote about Jack Dorsey’s well-timed $7 million purchase of Twitter in an Insider Weekends article. The same year I wrote another article on Seeking Alpha titled ‘10 Things Worth Celebrating About Twitter‘, highlighting as the title suggests, aspects of Twitter that were worth celebrating.

Earlier this year, in February 2022, in a Seeking Alpha article titled Broken Growth Stocks: Twitter, I talked about how Twitter had been a show me story for years with a lot of potential that was yet to be realized. In spite of seeing significant revenue growth since going public the stock had not appreciated much. Having outperformed Facebook (FB) during the last five years and with a new CEO at the helm, the future looked bright for Twitter. We wrote the following about our valuation model in that article and the intrinsic value of $55.16 we came up with was remarkably close to the price Elon Musk ended up offering for Twitter,

Plugging the next two years of consensus analyst estimates for 2022 earnings of 20 cents per share and 2023 earnings of 90 cents per share into a DCF model, assuming an EPS growth rate of 35% in year 3, declining 3% a year through 2031, an 8% discount rate and a 2% terminal growth rate, I get an intrinsic value of $55.16 per share, a 53% discount to current price. A DCF model is only as good as its assumptions and it’s entirely possible that the future might unfold differently.

Twitter DCF Model

In our latest Insider Weekends article, titled ‘Insider Weekends: Elon Musk Sells $8.52 Billion Of Tesla To Fund Twitter Purchase‘, we wrote the following,

The other big event last week was Elon Musk’s acquisition of Twitter (TWTR) in a deal financed through $13 billion in debt from banks, $12.5 billion through a margin loan on his Tesla (TSLA) shares and an additional $21 billion in equity financing from him. Towards this end, he sold 9.645 million shares of Tesla generating $8.52 billion from the sales. We discussed his sales of Tesla late last year in an article titled The Pied Piper Is Heading Out Of Town.

The spread on the Twitter-Musk deal is 10.57%, indicating that investors are concerned about the deal being consummated. Primary concerns include potential regulatory issues with the Biden administration focused on big tech and Musk’s financing of the deal, partly through loans backed by Tesla.

We did a series of four Twitter threads last week to create a primer about the merger arbitrage strategy. You can find the threads here:

  1. Introduction to merger arbitrage
  2. Deal types, CVRs and methods to capture the spread
  3. Next steps and regulatory processes
  4. Different ways to express a merger arbitrage strategy

Significant Tweets related to the deal:

 

The merger agreement includes a termination fee of $1 billion, which is payable both ways depending on which party terminates the deal. The agreement also barred Elon Musk from sending disparaging tweets about the company or its representatives.

You can find all the active deals listed below in our Merger Arbitrage Tool (MAT) that automatically updates itself during market hours.

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Deals In The Works

There were three new deals announced in the Deals in the Works section last week.

SPAC Arbitrage

There were three new SPAC IPOs filed and five new SPAC combinations announced last week. You can find the new SPAC IPO announcements in our SPACs tool here.

  1. On April 25, 2022, SuperBac Biotechnology Solutions, a biotech company in Brazil, entered into a definitive business combination agreement with XPAC Acquisition Corp. (XPAX).
  2. On April 25, 2022, OneMedNet Corporation, a curator of regulatory-grade Imaging Real Word Data and Data Knights Acquisition Corp. (DKDCAannounced the signing of a definitive business combination agreement
  3. On April 26, 2022, Arogo Capital Acquisition (AOGOentered into a definitive business combination agreement with EON Reality.
  4. On April 26, 2022, Isleworth Healthcare Acquisition (ISLE) and Cytovia Holdings, a biopharmaceutical company empowering natural killer (NK) cells to fight cancer through stem cell engineering and multispecific antibodies entered into a definitive business combination agreement.
  5. On April 28, 2022, Peak Bio, a clinical-stage biopharmaceutical company focused on developing the next-generation of therapeutics to treat oncology and inflammatory diseases, and Ignyte Acquisition (IGNY) have entered into a definitive business combination agreement.

Weekly Spread Changes:

The table below shows weekly spread changes between April 22 and April 29, 2022.

Symbol Quote Acquiring
Company
Acquiring
Company Quote
Current
Spread
Last Week
Spread
Spread Change
Weekly
Deal
Type
ZNGA 8.27 Take-Two Interactive Software, Inc. (TTWO) 119.51 19.23% 10.79% 8.44% Special Conditions
MILE 0.9814 Lemonade (LMND) 20.86 11.80% 5.83% 5.97% All Stock
ATVI 75.6 Microsoft Corporation (MSFT) 277.52 25.66% 20.85% 4.81% All Cash
NP 35.4 Schweitzer-Mauduit International, Inc. (SWM) 25.16 -3.48% -7.27% 3.79% All Stock
SAVE 23.61 Frontier Group Holdings, Inc. (ULCC) 10.61 -5.03% -8.24% 3.21% Cash Plus Stock
ABTX 40.86 CBTX, Inc. (CBTX) 28.52 -1.00% -0.14% -0.86% All Stock
AZPN 158.54 Emerson Electric Co. (EMR) 90.18 0.92% 1.97% -1.05% Special Conditions
GCP 31.37 Saint-Gobain (N/A) 2.01% 3.29% -1.28% All Cash
MBII 1.16 Bioceres Crop Solutions Corp. (BIOX) 14.6 10.76% 14.98% -4.22% All Stock
PTRS 8.94 OceanFirst Financial Corp. (OCFC) 18.73 -5.47% 15.98% -21.45% All Stock

Deal Statistics:

Total Number of Deals Closed in 2022 62
Total Number of Deals Not Completed in 2022 4
Total Number of Pending Deals
Cash Deals 55
Stock Deals 10
Stock & Cash Deals 9
Special Conditions 7
Total Number of Pending Deals 81
Aggregate Deal Consideration $791.96 billion

New Deals:

  1. The acquisition of PS Business Parks (PSB) by Blackstone (BX) for $7.6 billion or $187.50 per share in cash.
  2. The acquisition of Twitter (TWTR) by an entity wholly owned by Elon Musk for $44 billion or $54.20 per share in cash. We added TWTR as a potential deal to the Deals in the Works section on April 14, 2022,  and the price after the news of the potential deal came out was $45.08.
  3. The acquisition of GTY Technology Holdings (GTYH) by GI Partners for $383.29 million or $6.30 per share in cash.
  4. The merger of BlueCity Holdings Limited (BLCT) with Multelements Limited for $60 million or $1.6 per share in cash. We added BLCT as a potential deal to the Deals in the Works section on April 18, 2022,  and the price after the news of the potential deal came out was $1.27.

Deal Updates:

  1. On April 25, 2022, UnitedHealth Group Incorporated (UNHentered into an equity purchase agreement and related agreements relating to the sale of the claims editing business (ClaimsXten) of Change Healthcare (CHNG) to an affiliate of investment funds of TPG Capital for a base purchase price in cash equal to $2.2 billion.
  2. On April 25, 2022, Tower Semiconductor (TSEM) announced that at its extraordinary general meeting of shareholders, certain proposals related to the agreement and plan of merger with Intel Corporation (INTCwere approved.
  3. On April 26, 2022, shareholders of US Ecology (ECOLapproved the company’s merger with Republic Services (RSG) at a special meeting of shareholders.
  4. On April 27, 2022, New York Community Bancorp (NYCB) and Flagstar Bancorp (FBC) announced that they have mutually extended their merger agreement to October 31, 2022.
  5. On April 27, 2022, 51job (JOBS) announced that the company’s shareholders voted in favor of the proposal to approve the previously announced agreement and plan of merger with Garnet Faith Limited.
  6. On April 28, 2022, Activision Blizzard (ATVI) announced that its stockholders approved Microsoft Corporation’s (MSFT) proposal to acquire Activision Blizzard.

Closed Deals:

  1. The acquisition of Volt Information Sciences (VOLT) by Vega Consulting on April 25, 2022. It took 42 days for this deal to be completed.
  2. The acquisition of MGM Growth Properties (MGP) by VICI Properties (VICI) on April 29, 2022. It took 268 days for this deal to be completed.

Top 10 deals with largest spreads:

Please do your own due diligence on deals with large spreads. Some of these large spreads might be related to regulatory issues or because of the way the deal is structured. We classify some of these deals as “special situation” deals in our merger arbitrage tool and provide additional details to help with the analysis. There may be unique situations related to special dividends, spinoffs, proration, etc. that need to be accounted for when looking at these spreads.

Symbol Announced
Date
Acquiring
Company
Closing
Price
Last
Price
Closing
Date
Profit Annualized
Profit
BLCT 04/30/2022 Multelements Limited (N/A) $1.60 $1.26 12/31/2022 26.98% 40.37%
ATVI 01/18/2022 Microsoft Corporation (MSFT) $95.00 $75.6 06/30/2023 25.66% 22.04%
ZNGA 01/10/2022 Take-Two Interactive Software, Inc. (TTWO) $9.86 $8.27 06/30/2022 19.23% 116.96%
CHNG 01/06/2021 UnitedHealth Group Incorporated (UNH) $27.75 $23.56 12/31/2022 17.78% 26.60%
TEN 02/23/2022 Apollo Global Management, Inc. (APO) $20.00 $17.17 12/31/2022 16.48% 24.66%
WLL 03/07/2022 Oasis Petroleum Inc. (OAS) $82.85 $73.05 12/31/2022 13.41% 20.06%
BRG 12/20/2021 Blackstone Real Estate (N/A) $29.85 $26.61 06/30/2022 12.18% 74.07%
MILE 11/08/2021 Lemonade (LMND) $1.10 $0.9814 06/30/2022 11.80% 71.80%
FHN 02/28/2022 The Toronto-Dominion Bank (TD) $25.00 $22.38 11/27/2022 11.71% 20.35%
MBII 03/16/2022 Bioceres Crop Solutions Corp. (BIOX) $1.28 $1.16 09/30/2022 10.76% 25.83%

List of all pending deals:

The list of all pending deals is only available to InsideArbitrage Premium and Plus members.

Target Announced
Date
Acquirer Deal
Type
Closing
Value
Deal
Price
Last
Price
Target Volume Estimated
Closing Date
Return Annualized
Return
+ BLCT 4/30/22 Multelements Limited (N/A) All Cash $60 M $1.60 $1.26 64,075 12/31/22 26.98% 40.53%
+ ATVI 1/18/22 Microsoft Corporation (MSFT) All Cash $68.7 B $95.00 $75.6 8,450,424 6/30/23 25.66% 22.09%
+ TMX 12/14/21 Rentokil Initial plc (RTOKY) Special Conditions $6.7 B $55.00 $45.89 701,330 12/31/22 19.85% 29.82%
+ ZNGA 1/10/22 Take-Two Interactive Software, Inc. (TTWO) Special Conditions $12.7 B $9.86 $8.27 18,312,480 6/30/22 19.23% 118.94%
+ CHNG 1/06/21 UnitedHealth Group Incorporated (UNH) All Cash $13.28 B $27.75 $23.56 1,096,056 12/31/22 17.78% 26.71%
+ TEN 2/23/22 Apollo Global Management, Inc. (APO) All Cash $7.1 B $20.00 $17.17 1,624,830 12/31/22 16.48% 24.76%
+ WLL 3/07/22 Oasis Petroleum Inc. (OAS) Cash Plus Stock $2.82 B $82.85 $73.05 196,883 12/31/22 13.41% 20.15%
+ BRG 12/20/21 Blackstone Real Estate (N/A) Special Conditions $3.6 B $29.85 $26.61 118,806 6/30/22 12.18% 75.33%
+ MILE 11/08/21 Lemonade (LMND) All Stock $201.47 M $1.10 $0.9814 670,599 6/30/22 11.80% 73.02%
+ FHN 2/28/22 The Toronto-Dominion Bank (TD) Special Conditions $13.4 B $25.00 $22.38 6,317,141 11/27/22 11.71% 20.45%
+ MBII 3/16/22 Bioceres Crop Solutions Corp. (BIOX) All Stock $236 M $1.28 $1.16 4,149,527 9/30/22 10.76% 26.01%
+ TWTR 4/25/22 Elon Musk (N/A) All Cash $44 B $54.20 $49.02 37,793,473 12/31/22 10.57% 15.87%
+ TSEM 2/15/22 Intel Corporation (INTC) All Cash $5.4 B $53.00 $48.3 890,737 2/15/23 9.73% 12.29%
+ TGNA 2/22/22 Standard General L.P. (N/A) Special Conditions $8.6 B $24.00 $22.05 2,010,748 12/31/22 8.84% 13.28%
+ SJR 3/15/21 Rogers Communications Inc. (RCI) Special Conditions $26 B $32.40 $29.78 339,639 6/30/22 8.80% 54.43%
+ MGI 2/15/22 Madison Dearborn Partners, LLC (N/A) All Cash $1.8 B $11.00 $10.13 1,650,325 12/31/22 8.59% 12.90%
+ PNM 10/21/20 Avangrid, Inc. (AGR) All Cash $8.05 B $50.30 $46.66 623,257 6/30/22 7.80% 48.26%
+ SAFM 8/09/21 Cargill and Continental Grain Company (N/A) All Cash $4.49 B $203.00 $189.37 250,407 6/30/22 7.20% 44.53%
+ NPTN 11/04/21 Lumentum Holdings Inc. (LITE) All Cash $745.24 M $16.00 $15.14 414,752 12/31/22 5.68% 8.53%
+ ATC 7/01/21 MKS Instruments, Inc. (MKSI) Cash Plus Stock $6.5 B $22.49 $21.3 390,869 9/30/22 5.59% 13.52%
+ SJI 2/24/22 Infrastructure Investments Fund (N/A) All Cash $8.1 B $36.00 $34.19 2,147,219 12/31/22 5.29% 7.95%
+ VG 11/22/21 Ericsson (ERIC) All Cash $6.2 B $21.00 $19.96 2,526,031 6/30/22 5.21% 32.23%
+ FBC 4/26/21 New York Community Bancorp, Inc. (NYCB) All Stock $2.6 B $37.10 $35.3 691,354 10/31/22 5.10% 10.22%
+ HTA 2/28/22 Healthcare Realty Trust Incorporated (HR) Cash Plus Stock $10.74 B $31.90 $30.46 2,168,034 9/30/22 4.73% 11.43%
+ MNDT 3/08/22 Alphabet Inc. (GOOG) All Cash $5.4 B $23.00 $21.98 3,005,852 12/31/22 4.64% 6.97%
+ NLSN 3/29/22 Evergreen Coast Capital Corporation (N/A) All Cash $16 B $28.00 $26.81 2,634,619 12/31/22 4.44% 6.67%
+ CTXS 1/31/22 Vista Equity Partners and Elliott Investment Management LP (N/A) All Cash $16.5 B $104.00 $100.1 1,090,148 6/30/22 3.90% 24.10%
+ EXTN 1/24/22 Enerflex Ltd. (EFX.TO) All Stock $735 M $7.02 $6.79 204,272 9/30/22 3.46% 8.35%
+ GTYH 4/29/22 GI Partners (N/A) All Cash $383.29 M $6.30 $6.09 18,386,479 9/30/22 3.45% 8.34%
+ XENT 8/06/21 Medtronic plc (MDT) All Cash $1.1 billion $28.25 $27.37 838,006 4/30/22 3.22% 0.00%
+ COHR 3/25/21 II-VI Incorporated (IIVI) Cash Plus Stock $6.84 B $275.70 $267.9 220,626 5/31/22 2.91% 36.65%
+ RNDB 3/28/22 Hometown Financial Group, Inc. (N/A) All Cash $146.5 M $27.00 $26.34 11,717 12/31/22 2.51% 3.76%
+ LHCG 3/28/22 Optum (N/A) All Cash $6.2 B $170.00 $165.85 616,729 12/31/22 2.50% 3.76%
+ CCMP 12/15/21 Entegris, Inc. (ENTG) Cash Plus Stock $6.5 B $183.19 $178.91 223,331 12/31/22 2.39% 3.60%
+ ROG 11/02/21 DuPont de Nemours, Inc. (DD) All Cash $5.2 B $277.00 $270.72 133,200 6/30/22 2.32% 14.35%
+ MSP 4/11/22 Kaseya (N/A) All Cash $6.2 B $35.50 $34.7 889,105 12/31/22 2.31% 3.46%
+ SAIL 4/11/22 Thoma Bravo (N/A) All Cash $6.9 B $65.25 $63.83 6,238,800 12/31/22 2.22% 3.34%
+ CDR 3/02/22 Wheeler Real Estate Investment Trust, Inc. (WHLR) All Cash $291.3 M $29.00 $28.38 624,001 6/30/22 2.18% 13.52%
+ GCP 12/06/21 Saint-Gobain (N/A) All Cash $2.3 B $32.00 $31.37 802,854 12/31/22 2.01% 3.02%
+ BKEP 4/22/22 Ergon, Inc. (N/A) All Cash $199.72 M $4.65 $4.56 792,706 6/30/22 1.97% 12.21%
+ MTOR 2/22/22 Cummins Inc. (CMI) All Cash $3.7 B $36.50 $35.91 602,710 12/31/22 1.64% 2.47%
+ WBT 7/14/21 Ali Holding S.r.l. (N/A) All Cash $4.8 B $24.00 $23.62 2,704,961 6/30/22 1.61% 9.95%
+ PLAN 3/20/22 Thoma Bravo (N/A) All Cash $10.7 B $66.00 $64.99 4,478,156 6/30/22 1.55% 9.61%
+ PBIP 3/02/22 Fulton Financial Corporation (FULT) Cash Plus Stock $142.1 M $15.75 $15.52 9,297 9/30/22 1.46% 3.53%
+ CERN 12/20/21 Oracle Corporation (ORCL) All Cash $28.4 B $95.00 $93.64 2,924,095 12/31/22 1.45% 2.18%
+ Y 3/21/22 Berkshire Hathaway (BRK.A) All Cash $11.6 B $848.02 $836.5 151,793 12/31/22 1.38% 2.07%
+ SUMR 3/16/22 Kids2, Inc. (N/A) All Cash $97.44 M $12.00 $11.84 3,870 6/30/22 1.35% 8.36%
+ ACC 4/19/22 Blackstone (BX) All Cash $12.8 B $65.47 $64.67 6,758,953 9/30/22 1.24% 2.99%
+ CMPI 4/19/22 Regeneron Pharmaceuticals, Inc. (REGN) All Cash $250 M $10.50 $10.38 374,786 6/30/22 1.16% 7.15%
+ TVTY 4/05/22 Stone Point Capital (N/A) All Cash $2 B $32.50 $32.13 833,682 9/30/22 1.15% 2.78%
+ UMPQ 10/12/21 Columbia Banking System, Inc. (COLB) All Stock $4.5 B $16.73 $16.54 1,334,045 6/30/22 1.15% 7.11%
+ CNR 3/07/22 Clayton, Dubilier & Rice (N/A) All Cash $5.8 B $24.65 $24.39 1,536,262 9/30/22 1.07% 2.58%
+ IIN 2/28/22 Altaris Capital Partners, LLC (N/A) All Cash $183.22 M $24.25 $24.01 68,629 6/30/22 1.00% 6.18%
+ AZPN 10/11/21 Emerson Electric Co. (EMR) Special Conditions $12.34 B $160.00 $158.54 301,223 6/30/22 0.92% 5.70%
+ SRRA 4/13/22 GlaxoSmithKline plc (GSK) All Cash $1.1 B $55.00 $54.51 381,769 9/30/22 0.90% 2.17%
+ CDK 4/07/22 Brookfield Business Partners (N/A) All Cash $8.3 B $54.87 $54.41 1,915,117 9/30/22 0.85% 2.04%
+ OCDX 12/23/21 Quidel Corporation (QDEL) Cash Plus Stock $8.33 B $17.76 $17.61 770,969 6/30/22 0.83% 5.11%
+ TUFN 4/06/22 Turn/River Capital (N/A) All Cash $570 M $13.00 $12.9 1,387,444 6/30/22 0.78% 4.80%
+ ANAT 8/09/21 Brookfield Asset Management Reinsurance Partners Ltd. (BAMR) All Cash $5.1 B $190.00 $188.61 52,746 6/30/22 0.74% 4.56%
+ REGI 2/28/22 Chevron Corporation (CVX) All Cash $2.75 B $61.50 $61.06 1,722,578 12/31/22 0.72% 1.08%
+ NTUS 4/18/22 ArchiMed (N/A) All Cash $1.2 B $33.50 $33.27 417,486 9/30/22 0.69% 1.67%
+ EPAY 12/17/21 Thoma Bravo (N/A) All Cash $2.6 B $57.00 $56.62 534,607 6/30/22 0.67% 4.15%
+ ATRS 4/13/22 Halozyme Therapeutics, Inc. (HALO) All Cash $960 M $5.60 $5.565 5,243,111 6/30/22 0.63% 3.89%
+ MN 4/01/22 Callodine (N/A) All Cash $137.1 M $12.85 $12.77 201,500 9/30/22 0.63% 1.51%
+ TSC 10/20/21 Raymond James Financial, Inc. (RJF) Cash Plus Stock $1.1 B $30.37 $30.21 127,434 6/30/22 0.51% 3.17%
+ APTS 2/16/22 Blackstone Real Estate Income Trust, Inc. (N/A) All Cash $5.8 B $25.00 $24.88 1,056,333 6/30/22 0.48% 2.98%
+ MIME 12/07/21 Permira (N/A) All Cash $5.8 B $80.00 $79.68 820,361 6/30/22 0.40% 2.48%
+ POLY 3/28/22 HP Inc. (HPQ) All Cash $3.3 B $40.00 $39.86 1,122,490 12/31/22 0.35% 0.53%
+ JOBS 6/21/21 Garnet Faith Limited (N/A) All Cash $3.63 B $61.00 $60.85 981,252 6/30/22 0.25% 1.53%
+ ESBK 10/04/21 Community Bank System, Inc. (CBU) All Cash $82.8 M $23.10 $23.05 379 3/31/22 0.22% 0.00%
+ HBP 3/21/22 Woodgrain Inc. (N/A) All Cash $350 M $10.70 $10.68 897,927 6/30/22 0.19% 1.16%
+ PSB 4/25/22 Blackstone (BX) All Cash $7.6 B $187.50 $187.2 544,148 9/30/22 0.16% 0.39%
+ VWTR 4/14/22 D.R. Horton, Inc. (DHI) All Cash $260 M $15.75 $15.74 254,579 6/30/22 0.06% 0.39%
+ ECOL 2/09/22 Republic Services, Inc. (RSG) All Cash $2.2 B $48.00 $47.99 1,034,195 6/30/22 0.02% 0.13%
+ NSEC 1/26/22 VR Insurance Holdings, Inc. (N/A) All Cash $41.4 M $16.35 $16.35 426 6/30/22 0.00% 0.00%
+ GNOG 8/09/21 DraftKings Inc. (DKNG) All Stock $1.52 B $4.99 $5.01 470,098 5/31/22 -0.34% -4.22%
+ ABTX 11/10/21 CBTX, Inc. (CBTX) All Stock $1.5 B $40.45 $40.86 59,398 6/30/22 -1.00% -6.17%
+ NP 3/28/22 Schweitzer-Mauduit International, Inc. (SWM) All Stock $1.18 B $34.17 $35.4 64,270 12/31/22 -3.48% -5.23%
+ SAVE 2/07/22 Frontier Group Holdings, Inc. (ULCC) Cash Plus Stock $6.6 B $22.42 $23.61 1,678,114 12/31/22 -5.03% -7.55%
+ PTRS 11/04/21 OceanFirst Financial Corp. (OCFC) All Stock $186 M $8.45 $8.94 5,186 6/30/22 -5.47% -33.84%
+ EMCF 3/24/22 Farmers National Banc Corp. (FMNB) All Stock $105 M $32.94 $35.65 1,427 12/31/22 -7.61% -11.43%

Conclusion:

SPAC activity picked up a little last week with three new SPAC IPOs filed and five business combinations announced. As companies have started filing their first quarter earnings, we can see a change in the spreads for some deals. Multiple deals received required shareholder approvals last week. There was a significant change in the spread for the Zynga (ZNGA) – Take Two Interactive (TTWO) deal last week, probably caused by reports regarding the videogame industry sales that slipped year-over-year for a fifth straight month in March.

Disclaimer: I have long positions in Twitter (TWTR), First Horizon (FHN), Tower Semiconductor (TSEM), Healthcare Trust of America (HTA), TEGNA (TGNA) and Bluerock Residential Growth REIT (BRG). Please do your own due diligence before buying or selling any securities mentioned in this article. We do not warrant the completeness or accuracy of the content or data provided in this article.

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