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MarketWise Inc. stock surged 18.6% on Thursday after the company confirmed it received a takeover proposal from its largest shareholder, Monument & Cathedral Holdings (M&C), to acquire all remaining shares it doesn’t already own.
M&C’s offer values MarketWise at $17.25 per share in cash, representing about an 18% premium over Wednesday’s closing price and roughly 21% above the company’s one-year volume-weighted average price, according to the proposal.
MarketWise, which provides premium financial research and digital tools for self-directed investors, said its board is reviewing the proposal with the help of financial and legal advisors. The company also noted that there is no guarantee the discussions will result in a finalized deal.
M&C currently holds around 43% of MarketWise’s total voting power and argued that the firm would perform better as part of a larger digital media group rather than as an independent public entity. The proposal cited ongoing operational and market challenges since MarketWise went public in 2021, including a steep stock decline and a reverse split to maintain Nasdaq compliance.
The acquisition would be funded entirely with M&C’s existing cash reserves and carries no financing contingencies. However, the deal is conditional on terminating MarketWise’s tax receivable agreement without any additional payments or liabilities.
M&C also emphasized that it does not plan to sell its stake or support alternative bids, signaling its intent to take full control of the company if the proposal moves forward.