Comments on: JP Morgan buys Bear Stearns for almost nothing — to head off financial chaos http://venturebeat.com/2008/03/16/jp-morgan-buys-bear-stearns-for-almost-nothing-to-head-off-financial-chaos/ News About Tech, Money and Innovation Thu, 26 Nov 2009 01:33:32 +0000 http://wordpress.org/?v=2.8.5 hourly 1 By: abercrombie622 http://venturebeat.com/2008/03/16/jp-morgan-buys-bear-stearns-for-almost-nothing-to-head-off-financial-chaos/comment-page-1/#comment-895969 abercrombie622 Thu, 15 Oct 2009 08:25:08 +0000 http://venturebeat.com/2008/03/16/jp-morgan-buys-bear-stearns-for-almost-nothing-to-head-off-financial-chaos/#comment-895969 Why tiffany jewellery is your best choice?Compared with other jewellerys,tiffany jewellery have many advantages.<br><a href="http://www.tiffanyjewelleryonsale.co.uk" rel="nofollow">www.tiffanyjewelleryonsale.co.uk</a> Why tiffany jewellery is your best choice?Compared with other jewellerys,tiffany jewellery have many advantages.
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]]> By: Roundup: Murdoch on media and politics, Intelius a scam?, and more » VentureBeat http://venturebeat.com/2008/03/16/jp-morgan-buys-bear-stearns-for-almost-nothing-to-head-off-financial-chaos/comment-page-1/#comment-815241 Roundup: Murdoch on media and politics, Intelius a scam?, and more » VentureBeat Fri, 30 May 2008 08:54:30 +0000 http://venturebeat.com/2008/03/16/jp-morgan-buys-bear-stearns-for-almost-nothing-to-head-off-financial-chaos/#comment-815241 [...] (red line) in the last fifty years. Our previous coverage of Fisher’s views on the economy here. More details on Chinese social network 51.com’s social network — The company, which [...] [...] (red line) in the last fifty years. Our previous coverage of Fisher’s views on the economy here. More details on Chinese social network 51.com’s social network — The company, which [...]

]]> By: John http://venturebeat.com/2008/03/16/jp-morgan-buys-bear-stearns-for-almost-nothing-to-head-off-financial-chaos/comment-page-1/#comment-800193 John Tue, 25 Mar 2008 16:22:21 +0000 http://venturebeat.com/2008/03/16/jp-morgan-buys-bear-stearns-for-almost-nothing-to-head-off-financial-chaos/#comment-800193 Mr. Dimon is mastering the art of the spin. JPMorgan’s CEO, James Dimon, is playing the markets, press and Bears Stearns investors perfectly. He knows exactly what he is doing and is executing with precision. Yesterday we learned that JPMorgan sweetened the deal now to $10 USD a share, up from a shocking $2 original bid. Dimon was quoted in the Wall Street Journal as saying, ‘We took another crack at it to get it just right.’ Our theory is that Dimon knew all along that a $2 bid would have tremendous shock and awe value. In fact, he was counting on it. What better way to steal acquire Bear Stearns’ stock than to quintuple your original offer a week after the investors and the press couldn’t talk about it enough? Current Bear Stearns shareholders and investment bank employees had already calculated the fortune that got flushed down the toilet - now, hopeful again, they would be thrilled with any double digit stock price. A classic negotiating tactic is playing out before our eyes and, for most, the offer change comes as big news. We’re thinking this approach could go even further. In mid-March, a beaten up Bear Stearn’s stock was nearly $60 a share. To think that JPMorgan (or anyone else for that matter) could pick it up for even $20 a share was unfathomable at that point. Now, even if Dimon takes another “crack at it,” he’ll be pleased as punch to take the stock at $15 a share - especially with the aid of the Fed. Dimon knows the potential upside and he’s already protected JPMorgan from the downside. If JPMorgan’s target price for Bear Stearns was $12-15 a share all along, then anything less than that is simply icing on a very sweet cake. John <a href="http://www.jobsearchdigest.com/hedgefundjob" rel="nofollow">Hedge Fund Jobs</a> Mr. Dimon is mastering the art of the spin.

JPMorgan’s CEO, James Dimon, is playing the markets, press and Bears Stearns investors perfectly. He knows exactly what he is doing and is executing with precision. Yesterday we learned that JPMorgan sweetened the deal now to $10 USD a share, up from a shocking $2 original bid. Dimon was quoted in the Wall Street Journal as saying, ‘We took another crack at it to get it just right.’

Our theory is that Dimon knew all along that a $2 bid would have tremendous shock and awe value. In fact, he was counting on it. What better way to steal acquire Bear Stearns’ stock than to quintuple your original offer a week after the investors and the press couldn’t talk about it enough? Current Bear Stearns shareholders and investment bank employees had already calculated the fortune that got flushed down the toilet – now, hopeful again, they would be thrilled with any double digit stock price. A classic negotiating tactic is playing out before our eyes and, for most, the offer change comes as big news. We’re thinking this approach could go even further.

In mid-March, a beaten up Bear Stearn’s stock was nearly $60 a share. To think that JPMorgan (or anyone else for that matter) could pick it up for even $20 a share was unfathomable at that point. Now, even if Dimon takes another “crack at it,” he’ll be pleased as punch to take the stock at $15 a share – especially with the aid of the Fed. Dimon knows the potential upside and he’s already protected JPMorgan from the downside.

If JPMorgan’s target price for Bear Stearns was $12-15 a share all along, then anything less than that is simply icing on a very sweet cake.

John
Hedge Fund Jobs

]]> By: America’s collapsing economy and finance woes - Part 2: Of minds and men | YashLabs http://venturebeat.com/2008/03/16/jp-morgan-buys-bear-stearns-for-almost-nothing-to-head-off-financial-chaos/comment-page-1/#comment-799954 America’s collapsing economy and finance woes - Part 2: Of minds and men | YashLabs Sun, 23 Mar 2008 18:11:22 +0000 http://venturebeat.com/2008/03/16/jp-morgan-buys-bear-stearns-for-almost-nothing-to-head-off-financial-chaos/#comment-799954 [...] JP Morgan Chase bought Bear Stearns for $2 a share, less than a tenth of the market value of the company. [...] [...] JP Morgan Chase bought Bear Stearns for $2 a share, less than a tenth of the market value of the company. [...]

]]> By: Meebo raising round, valued up to $250 million. Bear Stearns sold for $236 million » VentureBeat http://venturebeat.com/2008/03/16/jp-morgan-buys-bear-stearns-for-almost-nothing-to-head-off-financial-chaos/comment-page-1/#comment-799180 Meebo raising round, valued up to $250 million. Bear Stearns sold for $236 million » VentureBeat Tue, 18 Mar 2008 04:39:41 +0000 http://venturebeat.com/2008/03/16/jp-morgan-buys-bear-stearns-for-almost-nothing-to-head-off-financial-chaos/#comment-799180 [...] at a time when the consumer economy has taken a hit, resulting in even large banks like Bear Sterns getting sold for far less than their previous values. Some investors remain quite skeptical about [...] [...] at a time when the consumer economy has taken a hit, resulting in even large banks like Bear Sterns getting sold for far less than their previous values. Some investors remain quite skeptical about [...]

]]> By: Gonzo http://venturebeat.com/2008/03/16/jp-morgan-buys-bear-stearns-for-almost-nothing-to-head-off-financial-chaos/comment-page-1/#comment-799145 Gonzo Tue, 18 Mar 2008 00:17:05 +0000 http://venturebeat.com/2008/03/16/jp-morgan-buys-bear-stearns-for-almost-nothing-to-head-off-financial-chaos/#comment-799145 What about the poor employees. See what the world thinks http://www.vizu.com/res/Business/Investing/Companies/Bear+Stearns/BCS/poll-results.html?n=82140 What about the poor employees. See what the world thinks http://www.vizu.com/res/Business/Investing/Companies/Bear+Stearns/BCS/poll-results.html?n=82140

]]> By: Steven Finch http://venturebeat.com/2008/03/16/jp-morgan-buys-bear-stearns-for-almost-nothing-to-head-off-financial-chaos/comment-page-1/#comment-799064 Steven Finch Mon, 17 Mar 2008 09:46:14 +0000 http://venturebeat.com/2008/03/16/jp-morgan-buys-bear-stearns-for-almost-nothing-to-head-off-financial-chaos/#comment-799064 This a very interesting deal and im looking forward to seeing how it pans out. This a very interesting deal and im looking forward to seeing how it pans out.

]]> By: Yakov http://venturebeat.com/2008/03/16/jp-morgan-buys-bear-stearns-for-almost-nothing-to-head-off-financial-chaos/comment-page-1/#comment-799061 Yakov Mon, 17 Mar 2008 09:24:29 +0000 http://venturebeat.com/2008/03/16/jp-morgan-buys-bear-stearns-for-almost-nothing-to-head-off-financial-chaos/#comment-799061 I was wondering if this mortage-based financial crisis would affect investing in companies outside of Silicon Valley I was wondering if this mortage-based financial crisis would affect investing in companies outside of Silicon Valley

]]> By: Don Jones http://venturebeat.com/2008/03/16/jp-morgan-buys-bear-stearns-for-almost-nothing-to-head-off-financial-chaos/comment-page-1/#comment-799049 Don Jones Mon, 17 Mar 2008 04:55:46 +0000 http://venturebeat.com/2008/03/16/jp-morgan-buys-bear-stearns-for-almost-nothing-to-head-off-financial-chaos/#comment-799049 The US system of generally free-market economics will likely lead to many failures of banks and non-bank financial institutions that hold mortgage-backed securities. The Bear Stearns transaction effectively values many of these types of securities at zero. The collateral damage to the economy as a result of the contracting lending environment will be significant, and startups will feel the sharp pain of tighter budgets slowing the trickle-down of technology spending. Only the best startups will survive. I also foresee a major US bailout of the financial system which will cost potentially in the low trillion range. At the end of the hard slog ahead, those startup companies that are still standing and well positioned will create significant value for themselves and their shareholders. The US system of generally free-market economics will likely lead to many failures of banks and non-bank financial institutions that hold mortgage-backed securities. The Bear Stearns transaction effectively values many of these types of securities at zero. The collateral damage to the economy as a result of the contracting lending environment will be significant, and startups will feel the sharp pain of tighter budgets slowing the trickle-down of technology spending. Only the best startups will survive. I also foresee a major US bailout of the financial system which will cost potentially in the low trillion range.

At the end of the hard slog ahead, those startup companies that are still standing and well positioned will create significant value for themselves and their shareholders.

]]> By: Jojo http://venturebeat.com/2008/03/16/jp-morgan-buys-bear-stearns-for-almost-nothing-to-head-off-financial-chaos/comment-page-1/#comment-799047 Jojo Mon, 17 Mar 2008 04:42:26 +0000 http://venturebeat.com/2008/03/16/jp-morgan-buys-bear-stearns-for-almost-nothing-to-head-off-financial-chaos/#comment-799047 Just $2/share? Damm, I would have offered maybe $3/share. Ben should have given me a call. Just $2/share? Damm, I would have offered maybe $3/share. Ben should have given me a call.

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