Ok - I happen to own both Square (a 3% position) and Afterpay (a 10% position) in my portfolio. One way or another I will be needing to sell some at some point as that will be just too much exposure to hold in one position.
Firstly I'm not mad about the deal price or all share nature. It is priced at 20% down from Afterpay's ATH with Square stock only 12% down from its ATH. Perhaps it leaves room for a counter offer.
It will be interesting to know whether Tiger Global and Tencent (and other institutions) are on side with this deal or might consider voting it down or a counter offer.
Still - the synergy and complimentary fit of these 2 getting together is amazing. It saves Afterpay the cost of an IPO.
One thing that wasn't mentioned in the deal announcement was what will happen to Afterpay Money. I hope they keep it as really what Afterpay was doing with the Money app was something that Square should have been doing with their cash app which just hasn't evolved in terms of Ux or features.
KM
APT Price at posting:
$119.77 Sentiment: Hold Disclosure: Held
