Shares of Yelp Inc. skyrocketed 23 percent Thursday on reports the consumer review website is exploring a sale that could raise more than $3 billion. Meanwhile, Monster Beverage Corp.’s profit took a hit last quarter after the energy drink maker’s pending deal with Coca-Cola Co. slashed $206 million from its quarterly earnings, due to the termination of third-party distribution partnerships.
Separately, semiconductor company Microchip Technology Inc. announced it will buy San Jose, California-based Micrel Inc., in a deal valued around $839 million.
Here’s a deeper look into companies moving after the closing bell:
Shares of Yelp Inc. (NYSE:YELP) soared 23 percent Thursday to close at $47.01 following reports the business review website is exploring a sale that could raise more than $3.5 billion, the Wall Street Journal reported, citing people familiar with the matter. The reports come as the company continues to face slowing subscriber growth.
The San Francisco-based company, which has a market value of nearly $3 billion, has seen its stock tumble more than 7 percent in the last week after the company’s quarterly earnings missed Wall Street forecasts on April 29. Yelp's revenue outlook for the current quarter also missed estimates, disappointing investors.
Yelp announced plans in February to buy Eat24, an online and app-based food-ordering service, for $134 million after the company’s earnings forecast for this year missed Wall Street expectations due to slowing subscriber growth. The San Bruno, California, company contributed sales of nearly $5 million in the quarter, Yelp said in its earnings report.
Shares of Yelp have lost 7 percent this year, and nearly 8 percent in the last 12 months. The stock ticked down nearly 1 percent in after-hours trading.
Microchip Technology Inc. (NASDAQ:MCHP) announced Thursday it will buy semiconductor company Micrel Inc. in a cash-and-stock deal, with an equity value of about $839 million, to expand its solutions for industrial, automotive and communications markets. The deal is expected to close in the third quarter.
The move comes in the midst of Microchip Technology beating Wall Street earning forecasts. For the January-March period, Microchip reported fiscal fourth-quarter net income of $99.40 million, or earnings per share of 45 cents, on revenue of $547.19 million, compared with a profit of $111.50 million, or earnings per share of 50 cents, on sales of $493.38 million a year ago.
Shares of the Chandler, Arizona-based company, which has a market value of $9.5 billion, dipped around 1 percent to $46.98 in extended-hours trading. However, shares have gained 5 percent this year.
Shares of Monster Beverage Corp. (NASDAQ:MNST) dropped nearly 5 percent after energy drink maker posted a massive hit to its profits, mostly due to costs related to the termination of third-party distribution partnerships ahead of its partnership with Coca-Cola Co..
Coca-Cola, the world’s largest beverage company, agreed to buy a 17 percent stake in Monster Beverage for about $2.15 billion, and as a result, Monster incurred $206 million in termination fees of last quarter. The partnership with Coke is expected to close in the second quarter of 2015.
For the January-March period, Monster reported fiscal first-quarter net income of $4.41 million, or earnings per share of 3 cents, on revenue of $587.03 million, compared with a profit of $95.25 million, or earnings per share of 55 cents, on sales of $536.13 million a year ago.
After the closing bell, shares of Monster Beverage lost around 5 percent to $136.15. However, shares have surged 114 percent in the last 12 months.