Microvision (MVIS) Stock: The Acquisition Case Keeps Building

Microvision MVIS Stock News

I’ve talked about Microvision, Inc. (NASDAQ: MVIS) quite a bit lately, and for good reason. Rumors are surfacing that the company will soon be taken over by Microsoft. Now, I cover takeover chatter quite often, but I don’t generally write more than one article about these types of rumors as most of them simply aren’t true.

However, when it comes to MVIS, I’m staying on top of the story as I honestly believe that an acquisition would be in the best interest of both companies. Here are five reasons that I believe Microsoft will offer to acquire Microvision:

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MVIS Stock Continues Up As Acquisition Hopes Continue

At the end of the day, an acquisition of Microvision would be a great move for Microsoft, and there’s quite a bit of evidence that it’s on the horizons. Here’s why:

Reason #1: Royalties: First and foremost, MVIS holds the patents surrounding the Halo Lens product. As such, every time Microsoft sells the product, it has to turn around and pay Microvision. However, with Microvision’s current market cap, should Halo Lens become as popular as many believe it would be, these royalties are going to be quite high. By acquiring the company, Microsoft would avoid this issue all together.

Reason #2: Product Manufacturing: Recently, MVIS announced that one of its customers has taken on the responsibility of manufacturing key components involved in the Halo Lens product. While the company didn’t say who took this over, it quickly became clear that Microsoft was the company after the Army provided accolades for Microsoft as a result of their work to speed up the production of the products.

Reason #3: MVIS Employees Becoming MSFT Employees: Interestingly, we’ve seen a key shift of employees going from Microvision and heading for Microsoft. Most notably, a senior researcher from MVIS is now a senior researcher at MSFT. Not to mention that the principal hardware engineer of the Halo Lens has also shifted over to Microsoft.

Reason #4: Clear Value: Another thing to think about here is that Microvision has a very valuable future. If you don’t believe me, just look at all of the institutions that have gotten involved. Even the Michigan Treasury is getting in on the action with a current holding of 4 million shares.

Reason #5: MSFT Has Nothing To Lose: Sure, an acquisition wouldn’t come free, but Microsoft has no shortage of cash. Should they acquire MVIS, there’s really nothing for them to lose. However, should they decide not to acquire the company, they are losing the opportunity to get their hands on technology that very well could be the future of the space.

The Bottom Line

The bottom line here is simple. Everything I’m looking is becoming yet another reason for Microsoft to pull the trigger on a deal. As I always mention in these situations, there has been no confirmed takeover talks, and rumors aren’t always true. So, be careful. Nonetheless, in this particular case, there’s good reason to expect a deal, and soon!

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