Time value of money. 38,723,022 of the 65,660,807 shares that make up the equity component of the deal are tied up in incremental escrow or as performance rights. That means most of the equity will be paid over the course of the next two years instead of up front. With a far lower amount being paid for the acquisition up front then, Dean is hedging his bets on the client increase (through the existing relationships of the acquired company as well as the attractiveness of the acquired company's service to new clients) being so beneficial in providing a launching pad for B2B that any further premium paid via equity across the next two years will be of far less financial consequence. And I think he's right. Its a marketplace. Amazon and eBay didn't get to where they are today by offering a limited range of products.
DW8 Price at posting:
6.2¢ Sentiment: Buy Disclosure: Held
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