YY Inc. Receives $68.50 Buyout Offer from Insiders
Published Thursday, July 23, 2015 by Ryan Allway
YY Inc. (NASDAQ: YY), a social platform that engages users in real-time online group activities through voice, video, and text on personal computers and mobile devices, received a buyout offer valued at $68.50 from its Chairman of the Board and Chief Executive Officer, according to a SC 13D SEC filing. With approximately 35.7% ownership and 75.1% voting power, the buyer group is likely to successfully push through the acquisition.

The purchase price represents a 17.4% premium to the closing price of the ADR on July 8, 2015 and still represents a significant premium to the current market price of about $60 per share. While the acquisition relies on third party funding, the buyer group is confident that it has sufficient capital in place to consummate the transaction, which could yield an opportunity for arbitrageurs to profit from the differential in share price.

YY enables users to create and organize groups of varying sizes to discover and participate in a range of online activities, including music shows, online games, dating shows, live game broadcasting and e-learning. In addition, the firm offers users an entertainment experience through its social community.