Marriott, Starwood Make $12.2B Blockbuster Deal
Starwood Hotels & Resorts has agreed to be acquired by Marriott International in a $12.2B deal that, if approved, would create the world's largest hotel company.
The deal will be a boon for Starwood shareholders. Marriott will forward 0.92 share plus $2 for each Starwood share, a value of $72.08 per Starwood share. Starwood shareholders will also receive an additional $7.80 per share from a spinoff and subsequent merger of its timeshare business with Interval Leisure Group, according to the Wall Street Journal.
The news has not resulted in higher stock activity on Wall Street, so far. Both Marriott and Starwood are down in early trading. The merger will create a hotel company with 5,500 hotels and over 1.1 million rooms globally. Last month, CNBC reported Hyatt hotels was in talks to acquire Starwood.