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I think the suggestion is that the buyers are algorithmic trading systems.

An alternative explanation: could Twitter buy Tweeter and use it to list a lot more easily than the formal IPO process?

If the government shutdown goes on for so long that Twitter runs out of cash, or if the SEC goes 10 rounds with Twitter's S-1, it might be easier/cheaper for Twitter just to buy TWTRQ. For a stock with a market-cap of <$1 million, that might be worth a punt.

Or, more darkly, if someone held stock of TWTRQ, they'd probably be promoting that view. (I don't, for the record!)



They'd likely need the SEC to perform it, but what you're describing is called a "Reverse Merger".

http://en.wikipedia.org/wiki/Reverse_takeover

Lately, they've been the mechanism for numerous chinese pump-and-dump frauds like those exposed by John Hempton and Muddy Waters.

http://brontecapital.blogspot.com/2012/12/fushi-copperweld-c...

http://dealbook.nytimes.com/2011/07/26/chinese-reverse-merge...

But they do have a legitimate function for honest companies.


Although this is off-topic from the original post, the reverse merger hijinks are an interesting read. Here is a 2011 list of the American companies this involved:

http://www.zerohedge.com/article/complete-list-all-chinese-r...




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