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MarketFoolery

Merger Monday & Investing in Batteries

MarketFoolery

The Motley Fool

Money, Business, Motley, Business News, Stocks, News, Investing, Market, Fool

4.71.7K Ratings

🗓️ 16 November 2015

⏱️ 27 minutes

🧾️ Download transcript

Summary

Marriott bids $12 billion for Starwood Hotels. Tim Hanson analyzes the deal and the online travel industry. Plus we dip into the Fool Mailbag and discuss investing in the battery industry, international exchanges and how we each fared in a national 12-kilometer race.

Transcript

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0:00.0

It's Monday, November 16th.

0:03.4

Welcome to Market.

0:04.6

I'm Chris Lell joining me in studio today.

0:07.6

The Overlord of Motley Full Services and Products,

0:10.3

Jim Hanson.

0:11.3

I just made that. I'm going to put that on my business. I just made that one. I love that title.

0:15.8

Run with that one. We're going to dip into the full mail bag. But we're going to start with the deal of the day.

0:22.4

Merger Monday living up to its name once again.

0:25.0

Marriott International is buying Starwood Hotels for 12.2 billion in cash and stock,

0:31.0

thus creating the largest hotel company in the world.

0:36.0

Why are shares of Starwood falling?

0:38.2

Like if this is such an awesome deal, why is Starwood the company being bought out? Why are their shares trading about 5% lower?

0:45.4

Well, Starwood has been up for sale for a couple of weeks, if not months now.

0:50.9

So I think, you know, the market have been speculating that the

0:52.8

that the takeout would have been at a higher price than it is currently although

0:56.4

it is kind of a stock deal so if you expect the synergies to play out then you

1:00.4

know how Star Wars performing today isn't isn't that relevant but that that's why

1:05.3

Starward is following just because people thought a deal was in the works and they

1:08.1

just speculated that it would come at a more expensive price tag.

1:11.4

It does seem putting aside the price drop expensive price

1:14.4

drop.

1:15.4

It does seem on the surface like this is a deal that could work out pretty well when you

...

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