Amsterdam-based startup Bird has made a strategic move by increasing its stake in CM.com after their initial takeover bid was rejected. The company attempted to acquire CM.com with an all-cash offer priced at €5.16 per share, which was deemed insufficient by CM.com’s management. Despite the setback, Bird has continued to pursue its objective of becoming a significant player in the market, further solidifying its commitment to the acquisition process.
Bird’s recent activities reflect a different approach compared to earlier proposals in the industry where companies have opted for long-term investments without seeking immediate control. Companies like Bird are adapting to market conditions where short-term gains are becoming less emphasized. The acquisition approach contrasts with historical corporate strategies, which usually involved securing quick gains and leveraging assets for immediate returns.
What Drives Bird’s Aggressive Stake Increase?
Bird argues that its offer price reflects a comprehensive valuation of CM.com, emphasizing the considerations based on the expected free cash flow and prevailing market valuation standards. Bird has evaluated CM.com’s potential at €3-4 million in normalized free cash flow, a significant factor in its offered price. The strategic move by Bird to increase its holdings demonstrates a belief in CM.com’s sustained profit viability.
“The offer price of €5.16 fully reflects the true value of CM.com based on their normalized free cash flow,” Bird stated.
Furthermore, Bird’s proposition included a substantial premium over the listed stock prices from early November. This premium was designed to lure shareholders by promising short-term financial appreciation. With the offer marking a 20 percent increase over earlier closing prices, Bird emphasized more immediate benefits to CM.com’s current shareholders.
What’s Next After Acquiring More CM.com Shares?
With an additional purchase of 111,788 shares, Bird now owns a total of 1,844,232 shares, accounting for a 5.74 percent stake in CM.com. This acquisition bolstered Bird’s position as the third largest shareholder, closely trailing the founding members Jeroen van Glabbeek and Gilbert Gooijers. While these founders maintain a controlling interest, doubling down on Bird’s investment underlines a robust belief in CM.com’s potential growth.
Bird affirmed, “We are open to continued dialogue and finding a constructive way forward with CM.com’s leadership.”
CM.com’s founders retain certain special rights as delineated in their Articles of Association, potentially complicating any unsolicited takeover attempts. Bird’s options may remain limited unless a mutually agreeable path to collaboration is found. The founders’ ability to block acquisitions may define the next steps in this engagement strategy.
Bird’s CEO underscores the prospects of creating a leading AI-centric platform through a potential merger. By integrating capabilities across different business facets such as marketing and payments, the envisioned merger aims to create synergies that would benefit both entities. Bird’s pursuit of growth through acquisition aligns with the broader trend of consolidation in the tech industry.
Bird’s consistent investment reinforces its interest in creating a comprehensive solution that integrates technological and market-driven advancements. For readers, the dynamics of this acquisition underline the importance of strategic investments in evolving business landscapes.
