Mergers and Acquisitions: Digital Domain Divests Studios, GE Might Buy Joy
Digital Domain Media Group (DDMGQ.PK) has divested studios in its Venice, CA and Vancouver to a joint venture owned by China’s Galloping Horse and India’s Reliance MediaWorks for a price of $30.2 million via a bankruptcy option. The buyers’ offer is more than two times the size of a prior bid from the private equity company Searchlight Capital.
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Wells Fargo & Co. (NYSE:WFC) might see in CIT Group Inc. (NYSE:CIT) an attractive purchase target, says Chris Mutascio at Stifel Nicolaus, as Wells’ low cost of funds would work nicely with CIT’s $35 billion in high-yielding assets. The analyst contends that even a purchase price of $52, which would represent a 33 percent bonus, would make a good deal for the buyer.
Shares of the mining firm Joy Global Inc. (NASDAQ:JOY) moderately spiked on rumors that the General Electric Company (NYSE:GE) might be poised to purchase it. Larry De Maria at William Blair says that an offer from GE is “increasingly likely” in the medium term, while GE Mining Chief Executive Geoff Knox tells Bloomberg, “It’s a good a time to be looking at acquisitions in a value sense”.
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