MicroVision (MVIS) Stock Pops On Acquisition Hopes

Microvision MVIS Stock News

MicroVision, Inc. (NASDAQ: MVIS) is making a run for the top in the market this morning, and for good reason. As I stated in yesterday’s article, the company is gearing up for a takeover. So, what’s the difference today? The CEO of the company has provided information on progress made with regard to a potential takeover.

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MVIS Stock Climbs On Takeover Hopes

For the past couple of months, MicroVision has been on the top of investor watchlists as chatter suggested that the company will be taken over by Microsoft. However, an article by White Diamond Research, a short selling firm, designed to cause the stock to fall may have backfired on the short sellers.

While they argued that the value of the stock is actually around $0.15 per share, if not completely worthless, likely taking out short positions in the process, those short positions are likely to lose.

Firing back at White Diamond, MVIS CEO, Sumit Sharma, was quoted as saying that the company is currently weighing multiple offers. In particular, these offers are coming from the automotive industry as well as the augmented reality industry.

Sharma didn’t give too many details. We don’t know who the potential suitors are, nor the price they’re willing to pay. We also don’t know if the suitors want to acquire all or part of the company, but we do know that there are deals on the table.

Of course, there is value in the automotive industry, as well as the augmented reality industry. However, there’s one company that’s more likely to acquire MVIS than any other. That would be Microsoft.

Microsoft’s HoloLens requires components made by MicroVision. As such, it would be in the company’s best interest to make an offer, especially considering the fact that the company is actively looking for strategic alternatives.

At the same time, some MVIS employees have already jumped ship to work for Microsoft and there’s a strong indication that Microsoft has already taken over some of the component development necessary to keep the massive tech firm happy.

All in all, signs are pointing to Microsoft as a suitor.

What To Watch For Ahead

MicroVision has been looking into strategic alternatives for some time now. The recent news adds a boost of excitement, but given the months this exploration has taken, there’s likely a deal around the corner. So, keep a close eye on MVIS stock as there’s the potential for massive, acquisition-driven gains ahead.

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