M&A: Price vs Value with Aswath Damodaran

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Through the end of September ’16, we’ve seen a number of high-profile tech M&A deals: Microsoft’s acquisition of Linkedin, Unilever’s acquisition of Dollar Shave Club, and Walmart’s acquisition of Jet.com.  The largest US tech companies (Apple, Google, etc.) have plenty of cash to spend, so perhaps this trend will continue.  Either way, the current cycle has produced plenty of valuation debates.  Here is NYU Professor Aswath Damodaran to remind everyone that price does not equal value: