On Friday, December 7, shares of Tivity Health (TVTY) closed at $40.61. At that price, Tivity had a market cap of $1.74 billion. Before the market opened the following Monday, Tivity announced a $1.3 billion acquisition of diet provider Nutrisystem. TVTY shares dropped 31% - and the declines have only continued since:
source: finviz.com
TVTY now has an enterprise value (pro forma for shares and RSUs issued in conjunction with the acquisition, which closed earlier this month) just over $2 billion. At least as far as the market concerned, the acquisition destroyed roughly