Not sure where to ask but looking for a little bit of advice/opinion.
Well I'm 37, due to previous employment i had some share options which turned into Zynga shares (yes Farmville Zynga) back in 2014, they all vested years ago but I sat on the as yes having a extra 10k in the bank would be nice but it wouldn't be enough for my gaols (help buy a house).
If you are not aware it was announced that Take 2 is going to buy Zynga, for $3.50 in cash per share on top of $6.36. or roughly $9.86 per share in total value
https://www.reuters.com/markets/dea...a-an-enterprise-value-127-billion-2022-01-10/
The current share price spiked on the news and is now hovering around the $9.10 mark, not a million miles away from the take over price if it goes through.
My question is I wonder am I better off cashing in soon and not bothering to wait for takeover.
I say this as if its anything like when Zynga brought my past employer (NatualMotion) The Zynga shares that turn into take 2 share will likely be restricted in stages and so I can't just sell up to help pay for a house/house deposit and to be honest I don't think there is the scope for Take 2 share to grow to much if at all.
I'll be interested to hear people opinions
i don’t think you would be locked up if you hold out for the takeover to go through and end up holding TakeTwo shares. It’s quite a different situation to when Zynga acquired your former employer which was a private company, at which point the lock up would have been to incentivise employees (some of whom probably made a lot of money) to continue working there. So don’t let that influence your decision. You can sell the shares the day after you get them.
Really in your mind you need to weigh up the likelihood of three scenarios. Firstly the takeover falls through and the Zynga share price drops back to where it was. Secondly it goes through as currently planned. And thirdly, someone else comes over the top with a higher offer (note that there is a go shop period ending next week so you might at least want to wait until the end of this). If you weigh these up and get a price above today’s you should hold. If not, sell.