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April 5, 2021, 10:15 a.m. EDT

Leaf stock soars after Graham Holdings buyout bid at a 21% premium

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By Tomi Kilgore

Shares of Leaf Group Ltd. /zigman2/quotes/201659165/composite LEAF 0.00% soared 21.6% in active morning trading Monday, after the consumer internet company announced an agreement to be bought by education and media services company Graham Holdings Co. /zigman2/quotes/206889364/composite GHC -0.06% in a deal that valued Leaf about $304.3 million. Trading volume swelled to 4.7 million shares, compared with the full-day average of about 1.1 million shares. Under terms of the buyout deal, Graham will $8.50 for each Leaf share outstanding, which represents a 20.9% premium over Thursday's closing price of $7.03. Leaf said it had received Graham's buyout bid on Feb. 9, after which Leaf contacted 10 potential buyers about their interest in Leaf. The company said none of the potential buyers submitted a competing offer. "After thoroughly reviewing the strategic alternatives available to Leaf Group, the Board of Directors concluded that this all-cash premium transaction with Graham Holdings achieved the Board's long-term objective of fully recognizing the value of the business and delivers immediate and substantial cash value to our shareholders," said Deborah Benton, chair of Leaf's board of directors. The stock has run up 83.9% year to date, while the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.56% has gained 8.2%.

/zigman2/quotes/201659165/composite
US : U.S.: NYSE
$ 8.45
0.00 0.00%
Volume: 12,425
May 12, 2021 9:45a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$304.47 million
Rev. per Employee
$589,058
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/zigman2/quotes/206889364/composite
US : U.S.: NYSE
$ 667.89
-0.42 -0.06%
Volume: 281.00
May 12, 2021 9:30a
P/E Ratio
7.52
Dividend Yield
0.90%
Market Cap
$3.34 billion
Rev. per Employee
$173,406
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/zigman2/quotes/210599714/realtime
US : S&P US
4,128.73
-23.37 -0.56%
Volume: 177.67M
May 12, 2021 9:45a
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