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r/wallstreetbetsr/wallstreetbets· u/AutisticTradingPro· 9h agoDiscussion 0

Warner Brothers Arbitrage

Investor summaryBullish

Author asks why few exploit the merger arbitrage between Warner Bros' $27 current price and $31 acquisition price.

Bull points
  • Current trading price of $27 presents a discount to the $31 acquisition price.
  • The company has cleared most regulatory hurdles for the acquisition.
Post body

Warner Bros currently trades at $27. They are getting acquired at a price of $31 and have cleared most regulatory hurdles. Is there a reason more people aren’t taking advantage of this arbitrage or am I missing something? It seems like free money on the table regardless of whether you want this to happen or not.

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