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Are public companies required to disclose quarterly performance after an acquisition?

Personal Finance & Money Asked on January 19, 2021

Recently, the company Fastly Inc (NYSE: FSLY) reported preliminary results for their 3rd quarter.

On their official website, they made the following statement

SAN FRANCISCO–(BUSINESS WIRE)– Fastly, Inc. (NYSE: FSLY), in fulfillment of its obligations to promptly file a resale registration statement on Form S-3 in connection with its successful acquisition of Signal Sciences on October 1, today announced preliminary revenue results for the third quarter ended September 30, 2020.

I was a bit surprised because I was not aware of any regulation that required them to do this. Is it typical for companies to announce their financials after a merger/acquisition? Or did their financial team just decide to do this for the hell of it?

One Answer

Is it typical for companies to announce their financials after a merger/acquisition?

Yes, unless the other company is insignificant. Shareholders - the owners - must be informed and if I merge or acquire another company my financials change SIGNIFICANTLY. This may not be the case if MS buys a smaller game studio i.e., but if you buy something that does a large change to your balance sheet, your fiduciary duties definitely include updating the information asap.

Correct answer by TomTom on January 19, 2021

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