Part 3/7:
Historically, it is common for acquiring companies to experience a fall in their stock prices after announcing a purchase, as markets often view these deals as premium payouts and question their long-term viability. This case with SAP was no different. Bill Barker, a market analyst, pointed out that the market's interpretation tends to be that acquirers frequently overvalue the companies they are purchasing, which leads to skepticism about the financial wisdom of the deal.