Genealogy research website Ancestry.com has resumed talks with London-based Permira Advisers LLP about a possible takeover at $32 a share, Bloomberg reports Oct. 2, noting that the stock has gone up more than 30 percent since takeover talks were first reported in June. In November’s BetterInvesting Magazine, staff Web content specialist Mary Treppa’s “First Cut” classifies Ancestry as a hold.
“The price of the stock has risen on rumors of a buyout, with the buyout expected in early August at around $35. (In September, Reuters reported that the company was amid discussions with three buyout firms.) For this reason I’d wait to see if there’s an announcement coming soon. If not, I’d change my rating to a buy,” she says.
Meanwhile, on Oct. 3, Ancestry announced that it’s acquired 1000memories Inc., a San Francisco startup focused on helping people digitize and share family photos. Terms weren’t disclosed on the news release appearing on the Nasdaq website. The deal includes the ShoeBox app that turns mobile phones into photo scanners.
Ancestry, based in Provo, Utah, is the world’s largest online resource for family history.
Treppa notes that: “Ancestry recently purchased Archives.com, which eliminates one of its competitors as well as gives the company access to additional members and more than 2 billion online records. Subscribers also continue to grow, increasing more than 130,000 since March. That said, I believe that at some point sales may level off, as the most dedicated of genealogists may have already become subscribers.”
To read more, BetterInvesting will be released in digital form Oct. 9 and will begin to arrive in the mail on Oct. 22.
BetterInvesting is a national nonprofit organization that has been empowering individual investors since 1951. Founded in Detroit, the association (formerly known as National Association of Investors Corporation) was borne out of the conviction that anyone can become a successful long-term investor by following commonsense investing practices. BetterInvesting has helped more than 5 million people become better, more informed investors by providing webinars, in-person events, easy-to-use online tools for analyzing stocks and mutual funds, a monthly magazine and a community of volunteers and like-minded investors. For more information about BetterInvesting, visit its website at www.betterinvesting.org or call toll free (877) 275-6242.