Diamonds and Dogs
5/14/12Ancestry.com Inc. (ACOM)
Ancestry.com Inc. wants to look back into its past and remember better days. Today the stock has taken a dive, down 13.72% at $22.57. The company saw its shares crash after U.S. network NBC decided not to renew the company's TV show for a fourth season. Ancestry's show "Who Do You Think You Are?" is based on the idea of tracing celebrities' family history through Ancestry.com's databases. The show which has been airing since 2010 has featured celebrities such as Steve Buscemi, Martin Sheen, Marisa Tomei and Lionel Richie. Furthermore, the show has been considered a major driver of new subscriber additions for the website. The company had about 1.7 million subscribers at end of 2011. Unfortunately, Ancestry.com is struggling today, closing just a few dollars above its 52-week low.
GolfSmith International Holdings Inc. (GOLF)
GolfSmith looks like it won the Master's, in the green (jacket), up 28.24% at $6.04. The company, Golf Town will buy Golfsmith International Holdings Inc. for about $96.5 million. Golf Town said Monday, that it was doubling its store base and significantly expanding its presence in the United States. Under the terms of the agreement, the Toronto company will pay $6.10 per share in cash. The offer represents a 30 percent premium over GolfSmith's Friday closing stock price of $4.71. Based on Golfsmith's outstanding shares of approximately 15.8 million and a price of $6.10, this puts the deals worth about $96.5 million. The sale, if approved by regulators, is expected to close in the third quarter. The boards of both companies have approved the sale, along with key Golfsmith shareholders that collectively hold the majority of its shares.