why did my 11 million company drop after i did a buy out

[The Rizzler]

https://gyazo.com/70d2f64c979500f32bbf144994ee91ba

(sorry for the name)
I did a buyout of one of the smaller corporations for 140b but my stock Droped hard core and it looks like i lost a ton of shares?


https://gyazo.com/91820856f64e16e7a82d0e3bf7186ea4

i uesd to own around 50-60% of the shares befor

[Berserker]

I guess your clients relaised it made them gay and decided to stop doing business with you.

But in all seriousness, the same thing happened to me when I used my financial company to buy a small company I owned a bunch of stocks in to prevent it from going bankrupt. I had way more then enough money saved up to pay their depts 10 times over, yet the value of my company collapsed. it's almost like the game was doing the median price of all the stocks of both companies combined.

[Alshain]

Your company's market cap gets combined with the purchased company's market cap, so the portion of the company that you own gets smaller after the merger.

If you owned 60% of your company and also 60% of the purchased company, your ownership percentage would have stayed the same.

The stock value drops because the number of shares outstanding jumped after the merger.