"The proposed spinoff of FTD is expected to take the form of a tax-free pro rata distribution to United Online stockholders. For example, if a stockholder owns 1 percent of United Online at the time of the spinoff, then, immediately following the spinoff, the stockholder would own 1 percent of each of FTD and United Online."
So, if we have a share of UNTD now, we'll get a free share of FTD? Am I missing something or is this too good to be true?
You're both missing something. let's say the whole co is worth 100 bucks, 1% is 1 dollar, now they split the co in half, each half is worth 50 cents and you get 1% of each half, that's 2 X 50 cents or 1 dollar. The only question is what do you do with your stock? I guess you have to decide which half of the co you want to stay with or keep both or get out altogether or buy more of 1 or both. Another question is the divie, what's with that? I think they are wrestling with these questions right now.