Answers.com, the leading answer engine announced that it has been acquired by AFCV Holdings, LLC, for a total cash consideration of approximately $127 million. AFCV will acquire all outstanding shares of Answers.com common stock, -- common stock shareholders will receive $10.50 in cash for each outstanding share of common stock they own.
"This is a great outcome for our shareholders," said Bob Rosenschein, Founder, Chairman and CEO. "After an exciting six years as a public company, we're very pleased to achieve considerable value for our investors. The acquisition price of $10.50 per share represents a significant cash premium of approximately 33% over our 90-day volume-weighted average closing stock price."
BusinessInsider reports Answers.com shareholders are going to try to prevent the deal from happening.
A source close to Outboard investments, which owns 9.2% of the company, told us, "There's not a shot in the world this thing is going through. This is going up for auction or it's not going down."
Says a principle: "We got this news this morning with our cornflakes -- on Yahoo. The company gave no indication that it was anywhere near making a deal with anybody or that it was even shopping it around."
"We're not agreeing to anything at this stage. We're waiting for the fourth quarter outcome. All we've seen is less than bare bones. Our expectation is that on reflection, the board will reconsider and look for signifinantly higher price."