Shares of PLBY Group (NASDAQ: PLBY) , which calls itself a pleasure and leisure company, rose a quick 11% as trading got under way on June 29. The reason for the price jump was pretty clear: The company put out a news release outlining an acquisition that augments its direct-to-consumer growth plans.
Earlier this morning, PLBY Group reported that it was buying Australian lingerie upstart Honey Birdette for $333 million in cash and stock. The stock component will amount to $95 million or roughly 2.2 million shares. That values Honey Birdette at about 12 times trailing-12-month adjusted EBITDA , according to PLBY Group. Very often the acquiring company in a deal sees its stock fall in value, but not this time around. A part of the reason for this is that PLBY Group has attracted the attention of the Reddit crowd and emotions are high. Thus, news updates sometimes result in price moves that aren't what one might expect.
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Why PLBY Group Popped 11% at the Open Today