Megacaps With $600 Billion of Cash Have Fuel for M&A
- Peloton talked up as one of the favorite takeover targets
- Risk of more M&A scrutiny could lead to shareholder payouts
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A whopping $600 billion of cash stashed at Wall Street’s megacap technology companies could drive a wave of deal-making in the sector after the valuations of once high-flying names such as Peloton Interactive Inc. and Netflix Inc. slumped.
Amazon.com Inc. has been speaking to advisers about a potential deal for Peloton, the Wall Street Journal reported Friday. The e-commerce giant had $96 billion in cash and marketable securities as of Dec. 31 -- more than nine times Peloton’s market value, even after the stock surged as much as 31% on Monday.