Microvision (MVIS) Stock Rockets On Takeover Chatter

Microvision MVIS Stock News

Microvision, Inc. (NASDAQ: MVIS) is flying in the premarket hours this morning, trading on gains of over 80%. However, the gains are shocking to many as the company hasn’t issued any news.

Nonetheless, the reason for the gains is clear. Investors are excited about chatter that Microsoft will take the company over. Here’s what’s going on:

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MVIS Stock Heads Up As Investors Await A Takeover

As mentioned above, Microvision is headed up in the market this morning in a big way. However, with no news out, many investors are scratching their heads, wondering what’s going on.

While the company hasn’t issued any news, a quick search through online message boards will tell you exactly why investors are excited. Essentially, there’s a rumor going around that Microsoft (MSFT) is going to take the comapny over. All in all, the rumor makes sense.

It all started in late March. At the time, MVIS announced that it had transferred component production to a customer. However, the name of the customer wasn’t announced.

Interestingly, shortly after the company said that it had transferred component production to one of its customers, the Halolens 2, by Microsoft saw increased availability. This is important because the component being produced by a customer is in the Halolens 2.

Further, the Army acknowledged Microsoft for taking control of the supply chain in order to continue the development of IVAS. Of course, this is inclusive of the same component. So, it’s likely that Microsoft was the unnamed partner that took over component production for MVIS.

Most recently, Microvision said that it was considering strategic alternatives, including the potential merger or sale of the company. That’s a big statement!

When we connect the dots, what we see is a relationship between MSFT and MVIS only getting stronger. In particular, this relationship has led to Microsoft likely taking control of key production.

Already being in the midst of a deep partnership, and having a need for the company’s technology, it does make sense that MSFT would want to acquire MVIS, and with the company obviously open to a potential acquisition, there really may be something to this rumor.

Final Thoughts

First and foremost, it’s important to keep in mind that this run is fuelled by speculation. Rumors that Microsoft will take Microvision over are clearly the cause. With that said, there has been no confirmation from either side that there are even talks going on and a deal may not actually happen here.

Nonetheless, if MVIS is acquired by MSFT, the transaction will likely happen at a strong premium. So, if all of this leads to an acquisition, those who did connect the dots have a huge potential opportunity.

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