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GAME is also thinking of expanding by acquiring Online All the Time, Inc. (Online) to accelerate its streaming gaming platform. Assume the pre-merger (fair value)

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GAME is also thinking of expanding by acquiring Online All the Time, Inc. (Online) to accelerate its streaming gaming platform. Assume the pre-merger (fair value) Online is $25.00 per share and there are 2 million shares oustanding. Online has no debt and since it is in high growth mode, there is no excess cash. GAME believes that combining the companies would be very synergistic and anticipates that after tax profit of the combined entity would be $10 million. Irregardless of your prior answers, assume that the market is fairly valuing game at $20.00 per share there are 100 million shares outstanding and $187.5 million of debt and $250 of excess o 6a. What is the pre forma value of the combined firm (including debt)? 1.997.550.000

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