Succession: Business Deals and Negotiations
Summary
In this article, we delve into the business deals and negotiations that take place in the TV show Succession. We explore the acquisition of Valter, the involvement of private equity investors, the voting trust of the holding company, and the possibility of a bear hug acquisition bid for Waystar Royco.
Acquiring Valter
In the first episode of Succession, Kendall Roy explores the acquisition of Valter, a social media company, to keep Waystar relevant in the digital media space. Negotiations are tough, and Kendall has to bargain hard to get a deal. Logan has taken out a loan and pledged his family’s stock to secure it. If the stock price falls below a certain level, the bank can call the loan, and the family’s stake in the company will decrease. To pay back the loan, Kendall approaches a private equity investor, Stewie, who wants a board seat and voting stock in exchange for the investment. Kendall needs the approval of the holding company Voting Trust to sell the family’s stock.
Boardroom Politics
The family members have votes in the voting trust of the public company, but there are also widely dispersed shareholders who invest through their 401k plan. Kendall is worried about his father’s decision-making and plans to gather support for a vote of no confidence at the next board meeting. However, he is fired from the board along with other directors who support him. Logan receives an offer to buy Waystar for $140 a share from Kendall at his sister’s wedding. It is an unusual way to deliver the letter, and the board of directors should have been informed quickly to prepare for a defense. The financials are challenging, and political support is needed.
Bear Hug Acquisition Bid
The article discusses the possibility of a bear hug acquisition bid for Waystar Royco, a media conglomerate. The bid could potentially be significant and much higher than the current stock trading price. However, the company has a poison pill defense mechanism that could make the acquisition more expensive for the buyer. The company’s CEO, Logan, is also considering acquiring a media empire owned by the Pierce family to make the company larger and harder to take over.
Mergers and Acquisitions
The article mentions downsizing as a possible strategy for struggling companies and the flexibility of the board to choose the right person for the CEO position. The article also touches upon mergers and acquisitions, where smaller companies are acquired for their engineering talent or intellectual property.
Gojo Deal
The article concludes with a mention of Logan’s interest in the Gojo deal, which could potentially be a merger of equals, allowing Waystar to remain independent.
Conclusion
Succession provides a glimpse into the complex world of business deals and negotiations. From acquisitions and private equity investments to boardroom politics and mergers, the show highlights the challenges faced by companies in the media industry. As viewers, we are left wondering what the future holds for Waystar Royco and the Roy family.
