BASE - Squarespace's Big Go-Private Deal Leaves Few Reasons To Hang On
2024-05-14 09:54:27 ET
Summary
- Squarespace announces it will be taken private in a $6.6 billion all-cash deal, causing shares to spike 13.3%.
- The deal is expected to close by Q4 2024, leaving minimal upside for shareholders.
- Squarespace has been experiencing rapid growth in subscriptions, bookings, and gross payment volume, but the stock is considered overvalued.
- The deal kills most real upside and there are better opportunities that can be had in the meantime.
May 13 ended up being a very interesting and monumental day for shareholders of Squarespace ( SQSP ). For those not familiar with the company, it operates as an all-in-one platform that provides its customers with a variety of tools to help said customers boost sales and presence. I understand this is vague. So it does require a bit of additional detail. In short, the company offers designs that can be used to create websites, as well as services to aid in the acquisition of web domains. It offers customers commerce solutions to help facilitate transactions of physical products, subscriptions, and more. And it also engages in marketing activities like helping customers to launch e-mail campaigns, keep track of analytics, and more....
Squarespace's Big Go-Private Deal Leaves Few Reasons To Hang On