May 12, 2020 (PM) – Microsoft denies rumors they are buying Microvision. See follow up article from May 12th.
May 12, 2020 (PM) – Users on Reddit r/MVIS forum traced the source of The Florida Independent story May 12th to a May 8th article on TodaysFive. The TodaysFive article has been edited as shown in a topic on May 10th linked to here to remove the citing of sources within Microsoft. All this goes to reducing the credibility of the report by The Florida Independent.
May 12, 2020 – I want to clarify that the “Florida Independent” is the only publication reporting this information. They appear to be a “contributed publication” and that this might be part of a pump and dump from one of their contributors.
Short News Flash On Report of Microvision Being Taken Over by Microsoft
This is just a quick new flash as a follow up on last week’s blog entry, Microvision Worth More Dead Than Alive – Stock Jumps 147% in a Day. The stock continued going up that day before plunging back down again but still at more than 2X where it was a few days earlier as had crept up again.
The Florida Independent is now saying they have confirmed that Microsoft is going to Aquire Microvision I would treat it as a rumor, but The Florida Independent claim it will be announced on May 12 (tomorrow). I found out about this news because of their article cited this blog and used pictures from Hololens 2 Video with Microvision “Easter Egg” Plus Some Hololens and Magic Leap Rumors.
Quoting from Microsoft’s Acquisition of Microvision Confirmed by The Florida Independent, May 10, 2020:
The rumors of Microsoft’s acquisition of MicroVision (MVIS), a laser scanning and 3d sensing tech firm, are finally a reality. The official news of the MircoVision acquisition is set to be announced Tuesday May 12th. Microsoft’s decision to acquire MicroVision follows a tumultuous week, after their stock price skyrocketed over 300% to $1.75 amid rumors of the Microsoft takeover, then tumbled over 65% in the following days after the tech firms earnings call came and went without news of a Microsoft buyout.
I have no idea what this might do to the Microvision Stock. If The Florida Independent’s story is correct, then I would assume the takeover price is set. In my experience, the price of the stock in these situations up settling a little below the offer price of the takeover (once again assuming their story is correct).
Addendum Something I Wrote on the Microvision Sub-Reddit May 7th 2020
I thought I would add something I wrote on the Microvision Sub-Reddit a few days ago:
On the subject of “is someone buying Microvision,” I’m not sure and I don’t have any inside information. I tend to doubt it is a bidding war for Microvision as they would not be bidding in public but making offers to the board. Why after 26 years would two companies be that interest? There MIGHT be one company, the two most likely would be Microsoft or STMicro. There could be that someone has gotten wind of a rumor (or inside information), that may or may not be true, that someone is making an offer to the board to buy Microvision at some multiple of the stock price. So price stock jump could be from people trying to get ahead of the buyout which in turn drew in other to get in on the momentum.
The terms of the license with Microsoft could help or hurt the valuation in a takeover. If Microsoft is seen as getting a sweetheart deal, the value would be lowered. It also depends on how the buyer would view the volume potential with Microsoft. Also, the license with Microsoft could make licensing other more difficult. And so on.
A point above was that the licensing deal with Microsoft would be a bit of a poison pill to other companies taking over Microvision.