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N-ICE N-ICE Baby: ICE Buys NYSE For $33.12 In $8.2 Billion Deal

Tyler Durden's picture




 

Just about a year after the failed attemped by the Deutsche Bourse to acquire the NY Stock Exchange, we get a friendly reminder that stock trading is a dying business, and venues that engage in it must consolidate or die. Sure enough, moments ago the Intercontinental Exchange, or ICE, announced it would acquire the NYSE for $33.12 or roughly $8.2 billion in stock and cash.

  • ICE TO BUY NYSE EURONEXT FOR $33.12-SHR IN STOCK, CASH
  • ICE PACT IS FOR ABOUT 67% SHRS, 33% CASH
  • INTERCONTINENTALEXCHANGE TO ACQUIRE NYSE FOR ABOUT $8.2 BLN
  • ICE TO FUND CASH IN DEAL WITH CASH ON HAND, EXISTING CREDIT
  • NYSE EURONEXT HOLDERS TO OWN ABOUT 36% OF ICE SHRS POST DEAL
  • ICE SAYS NIEDERAUER TO BE PRESIDENT COMBINED CO, CEO NYSE GROUP

It is unclear if the combined exchange will be called N-ICE.

That this follows days after yet another mega consolidation, this time one creating a monopolist in the HFT space with the GETCO acquisition of Knight, is also not surprising. Expect more and more forced, unforced, voluntary and otherwise mergers, as trading volume collapse to levels not seen since the mid-1990s. Sadly, there is just not enough money for everyone who continued to expect the 2000s trading volume trendline to continue in perpetuity.

 

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Thu, 12/20/2012 - 09:31 | 3082137 williambanzai7
williambanzai7's picture

Ice cubed!

Thu, 12/20/2012 - 09:39 | 3082162 Careless Whisper
Careless Whisper's picture

The Careless Whisper Illuminati News Update & Threadjacking

 

Gunman's Mom Shot Dead After 2 Day Vacation At Famed Bretton Woods Hotel; Set Gold Standard; IMF Formed

http://www.nypost.com/p/news/local/killer_got_ready_with_mom_away_obDc6I...

http://www.omnihotels.com/FindAHotel/BrettonWoodsMountWashington/OurHist...

 

Thu, 12/20/2012 - 22:04 | 3085172 jwoop66
jwoop66's picture

ok, I am starting to believe that shit now...

Thu, 12/20/2012 - 10:15 | 3082357 LongSoupLine
LongSoupLine's picture

So, ICE (aka-Goldman) owns NYSE?  This should end well...T

Thu, 12/20/2012 - 14:48 | 3083531 JR
JR's picture

It’s an international banker market; it’s only fitting that the international bankers control the international stock exchange.

Thu, 12/20/2012 - 10:32 | 3082424 icanhasbailout
icanhasbailout's picture

Offer valid for the next 17 nanoseconds

Thu, 12/20/2012 - 18:00 | 3084241 Djirk
Djirk's picture

HA I called this a decade ago....always too early...sell side bitchez are going down...robots are taking over the world

Thu, 12/20/2012 - 09:32 | 3082139 GetZeeGold
GetZeeGold's picture

 

 

Would have thought the casino would have gone for a little more.

Thu, 12/20/2012 - 09:38 | 3082158 cossack55
cossack55's picture

Speaking of casinios, how about calling it Casino Royale.  Maybe a large poster of David Niven in the background.

Thu, 12/20/2012 - 09:41 | 3082170 Killtruck
Killtruck's picture

Pretty close to the price of a 1 oz. silver Eagle. 1:1? No thanks.

Thu, 12/20/2012 - 09:55 | 3082232 LeisureSmith
LeisureSmith's picture

Silver is getting ice'd in broad daylight as i type. Christmas sale Bitchez.

Thu, 12/20/2012 - 09:40 | 3082167 kridkrid
kridkrid's picture

Now that the definition of big numbers has been rendered meaningless, it's fairly hard to judge.

Thu, 12/20/2012 - 09:32 | 3082141 DavidC
DavidC's picture

Tyler(s),
Your humour has me on the floor laughing sometimes!

DavidC

Thu, 12/20/2012 - 09:33 | 3082144 buzzsaw99
buzzsaw99's picture

bonus time

Thu, 12/20/2012 - 09:38 | 3082156 fonzannoon
fonzannoon's picture

If there is no trading volume on the NYSE and tons of it in dark pools, does that put a hole in the volume thesis?

Thu, 12/20/2012 - 09:39 | 3082157 nonclaim
nonclaim's picture

Pathetic ending after a 200+ years of history.

In other words, another one bites the dust.

Thu, 12/20/2012 - 09:38 | 3082159 NeedleDickTheBu...
NeedleDickTheBugFucker's picture

The bots are not afraid by this move.

Thu, 12/20/2012 - 09:40 | 3082166 Oldballplayer
Oldballplayer's picture

In ten years all of the NYSE will be putting up drywall in FLA just like Vanillia.

Thu, 12/20/2012 - 11:03 | 3082530 ParkAveFlasher
ParkAveFlasher's picture

MBS = that's precisely what they've been doing, building drywall huts in FLA.

The signs are everywhere these days, aren't they?

Thu, 12/20/2012 - 09:41 | 3082169 AgShaman
AgShaman's picture

Exham Priory

Thu, 12/20/2012 - 09:42 | 3082172 ekm
ekm's picture

Haven't I been telling you over and over and over and over that NYSE was going out of business due to lack of trading?

Thu, 12/20/2012 - 09:44 | 3082181 fonzannoon
fonzannoon's picture

EKM do you factor dark pool trading into your thesis?

Thu, 12/20/2012 - 09:51 | 3082210 youngman
youngman's picture

Lets see..volumes dropping....yeah I would buy it...must be money in manipulation...

Thu, 12/20/2012 - 09:52 | 3082214 ekm
ekm's picture

Dark Pools are only for institutions. There's no trading for the sake of trading as far as I know.

Institutions make an offer and it stays there until somebody takes it. No HFT in dark pools.

Thu, 12/20/2012 - 09:43 | 3082173 Oldwood
Oldwood's picture

I just can't help but wonder what our economy would be like if all the money invested in the stock market was actually invested in productive businesses.

Thu, 12/20/2012 - 18:03 | 3084257 Djirk
Djirk's picture

a man can dream....how do you make that happen and remove the giant sucking sound investments banks take from pensions/investors/insurance?

Thu, 12/20/2012 - 09:47 | 3082190 williambanzai7
williambanzai7's picture

The NYSE is essentially a podium for bell ringing photo ops and news shots of men in shmantas covering their eyes in front of trading screens.

Thu, 12/20/2012 - 09:55 | 3082228 Disenchanted
Thu, 12/20/2012 - 09:55 | 3082235 Careless Whisper
Careless Whisper's picture

NYSE-Amsterdam has their own opening "Bang The Gong" photo ops. Nice touch...

http://www.youtube.com/watch?v=qSwxpQWE_lo

 

Thu, 12/20/2012 - 09:53 | 3082220 TideFighter
TideFighter's picture

Ice Capades.

Thu, 12/20/2012 - 09:55 | 3082229 toomanyfakecons...
toomanyfakeconservatives's picture

For sale, used stock market. Needs tune-up, new engine, shock absorbers, drive shaft, couple dents, Salvage title. Best offer!

Thu, 12/20/2012 - 09:58 | 3082250 Disenchanted
Disenchanted's picture

 

 

Air bags however are in tip top shape.

Thu, 12/20/2012 - 10:03 | 3082290 Byte Me
Byte Me's picture

NYCE

Thu, 12/20/2012 - 10:23 | 3082336 ThisIsBob
ThisIsBob's picture

May I be the first to wish them the worst of luck.

Thu, 12/20/2012 - 10:17 | 3082349 IamtheREALmario
IamtheREALmario's picture

The sad thing is that stock OWNERSHIP should not be a dying thing. What had to die was the growth in stock trading (infinite growth is never sustainable ... and especially growth pulled in from the future). The bankers killed their own industry by killing every ounce of credibility they had by making it totally crooked (they assume people are incapable of learning and that is a bad assumption). The proliferation of non-equity offerings (synthetic instruments, such as ETFs) that have no intrinsic value and the computerized theft were what broke the camel's back. In their greed they murdered themselves.

Bankers have killed their own scams by going way, way, way too far to fleece the public. There needs to be a massive consolidation of bankers and then after that, a consolidation of the parasites that feed off the banking parasites. Just history repeating itself. (We find munch less royalty and royal sycophants these days ... same thing).

First, the unconnected clueless will be cut, then the intelligent and innocent who drive their business. Then they will cut the useless relatives that they have been supporting. Then, when they are all alone, they will die out ... finally and the world can recover from their treachery and evil subterfuge.

... but I ramble.

Thu, 12/20/2012 - 10:14 | 3082351 FrankDrakman
FrankDrakman's picture

Lousy Intercontinental Exchange - LICE?

Manipulated Intercontinental Exchange - MICE?

My favourite:

Financial Leeches Exploiting Everyone Continental Exchange - FLEECE

Thu, 12/20/2012 - 10:29 | 3082410 asteroids
asteroids's picture

A few years ago our dear commrad Cramer said NYX would head back toward $100. I guess that's not going to happen.

Thu, 12/20/2012 - 10:30 | 3082414 TraderTimm
TraderTimm's picture

Can't wait until CME's turn comes.

Year-over-year volume trends must be worrysome.

Bulk of their income, other than scraping off exchange fees for "clearing" and other pursuits, is selling the quote data to vendors.

The moment someone invents a scalable decentralized exchange, (a lot closer than you may think), the sooner the middlemen disappear.

Couldn't happen to a better group, honestly.

Thu, 12/20/2012 - 10:53 | 3082498 moneybots
moneybots's picture

If it is a dying business, why are they paying 8 billion dollars for it?

Thu, 12/20/2012 - 10:54 | 3082503 ekm
ekm's picture

Now it's CME's turn. Who's going to buy CME?

 

Since MFG theft, volume there has gone down the drain.

Thu, 12/20/2012 - 11:09 | 3082546 moneybots
moneybots's picture

The death of equities.  1982.  The start of the greatest bull market in stocks.

Stock ownership is not a dying thing.  Cycles start from a low, reach up to a high and return to a low again, to complete the cycle.  Secular bull and bear markets last for a long time.  The last secular bear lasted 16 years.  We are now at 13 in this cycle.

" (synthetic instruments, such as ETFs) that have no intrinsic value".

What value does a piece of paper have?  Any stock certificate is a piece of paper.  On Storage Wars, a bunch of stock certificates were found in a locker.  The winning bidder on the locker took them in to have them appraised.  It rurned out that the companies no longer existed, so the pieces of paper were only worth some sort of collector value.

 

Thu, 12/20/2012 - 11:16 | 3082553 virgilcaine
virgilcaine's picture

The Jersee Shore gang ringing the opening Bell doesn't inspire a round of confidence?  Tired old Men like Art Cashin roaming around mumbling to themselves? Maria Bartoma.. anything?

Thu, 12/20/2012 - 11:40 | 3082668 Say What Again
Say What Again's picture

Does this mean that all the HFT guys have to move their co-located servers? 

Thu, 12/20/2012 - 12:55 | 3083084 Jumbotron
Jumbotron's picture

http://en.wikipedia.org/wiki/IntercontinentalExchange

An exchange that trades commodities and derivatives buying up the combined, merged tradings exchanges of the NYSE, Amsterdam Stock Exchange, the Brussels Stock Exchange, the Paris Bourse, the London International Financial Futures and Options Exchange and the Portuguese Stock Exchange....(the Euronext of the merged NYSE/Euronext deal back in 2007 http://en.wikipedia.org/wiki/Euronext)

 

The elite's noose tightens.....

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