Deals
Skullcandy Turns Takeover Target After 66% Drop: Real M&A
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Skullcandy Inc., the headphone maker known for colorful designs, is turning into a takeover target after falling more than almost every other initial public offering during the past 18 months.
Down 66 percent since it began trading in July 2011, Skullcandy has performed worse than all but seven of the 185 U.S. IPOs completed since its debut, according to data compiled by Bloomberg. The stock sank to a record low of $6.70 last week after Jefferies Group Inc. recommended selling the shares. The company’s enterprise value of 3.9 times earnings before interest, taxes, depreciation and amortization is cheaper than 96 percent of stocks in the Russell 2000 Index, the data show.