Workday Stock Rallies Following Reports of Ongoing ‘Go Private’ Financing Efforts
Workday (WDAY) stock jumped after CNBC's David Faber reported that financing talks for a potential take-private deal are still moving forward .
Faber said he's hearing "a bit more optimism" that a deal could happen, citing people familiar with the matter.
According to his sources, teams are putting together financing packages, and equity is being raised in a meaningful way.
This isn't the first time Workday stock has moved on take-private chatter.
Back on August 13, shares jumped 18% after Reuters reported that private equity firm Silver Lake was in talks to acquire the company.
Silver Lake could bring in additional investors to help fund a deal of this size, given Workday's scale.
The recent update is notable for its shift in tone. Just last month, Faber had cautioned that financing for a Workday deal might be difficult to pull together.
Now he's striking a more optimistic note, saying financing packages and equity commitments appear to be coming together.
That change in tone is likely why Workday stock is reacting as strongly as it is today.
These reports are based on unidentified sources, and no formal deal has been announced.
Still, the market is clearly paying attention every time new details emerge about the financing side of a potential transaction.
Today's move shows how sensitive Workday stock has become to any headline about a take-private deal.
A jump of this magnitude on sourced reporting, rather than a confirmed announcement, tells you investors see real odds that a deal gets done.
At the same time, the swings between cautious and optimistic reporting over the past month show how fluid the financing situation still is.
Until there's a signed agreement, expect Workday stock to keep moving with every new report on how the financing talks are progressing.
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