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Merger Arbitrage Mondays: Zendesk Shareholders Unhappy About Momentive Deal


  • Potential deal in the works, Momentive Global to be acquired by Zendesk.
  • Zendesk, Momentive stocks fell after the deal was announced.
  • Zendesk investors are clearly not happy with this deal and the stock received multiple downgrades after the deal was announced.
SurveyMonkey headquarters in Silicon Valley

Sundry Photography/iStock Editorial via Getty Images

Merger activity increased last week with five new deals announced and four deals completed.

We added Momentive Global (NASDAQ:MNTV) as a potential deal in the works on Oct. 6, 2021, when Bloomberg reported that activist investor Legion Partners Asset Management was calling

This article was written by

Asif Suria profile picture

Asif Suria is an entrepreneur and investor with a professional background in technology and a focus on event driven strategies including: merger arbitrage, spinoffs, (legal) insider trading, buybacks and SPACs. Asif has been actively investing for over 20 years and sharing his ideas for the past 10.

He is the leader of the investing group Inside Arbitrage where he shares investment ideas rarely found in mainstream financial press. Inside Arbitrage provides access to six different event-driven strategies to expand your investing toolbox, special situations focused tools, qualitative writeups of ideas through weekly articles, and a comprehensive monthly newsletter. Learn more.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of NUAN, CHNG, TRIL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Disclaimer: I have long positions in Nuance Communications (NUAN), Change Healthcare (CHNG) and Trillium Therapeutics (TRIL). I also have put options in Change Healthcare. Please do your own due diligence before buying or selling any securities mentioned in this article. We do not warrant the completeness or accuracy of the content or data provided in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (8)

Likrat ha-Tiferet profile picture
> Zendesk grew its earnings by 32%

ZEN has never had any earnings. while its sales have risen at impressive 31% a year over the last 5 years, its expenses have risen at far less impressive 29%. On current trends, the two will cross in on 2035?
Great info. Thank you. Glad I held onto CEPQ. Really wasn't all
that painful as they kept paying even in so-so times!
Asif Suria profile picture
@AlieGee You are welcome. The whole midstream segment is making a comeback along with the rest of the energy sector. I had exposure through AMLP.
@Asif Suria I added more AMLP today. Nice yield but I don't like how it's taxed. Even AMZA is trying to make a comeback.
Asif Suria profile picture
@AlieGee The nice thing is that you don't get a K-1 with AMLP. The distribution wouldn't be taxed in a tax deferred account, would it?
Isn't there another outfit looking to buy MX?
Asif Suria profile picture
@Bobbie B Cornucopia made a $35 unsolicited bid but then backed out when the regulatory environment changed. There were more than half a dozen bidders originally before the deal with Wise Road was signed.
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