On Thursday, September 14, Cornerstone OnDemand shares went soaring, closing the day with gains of 15%.
What Happened?
Shares of Cornerstone OnDemand (NASDAQ:$CSOD) started to increase after news surfaced that the California-based company had hired financial advisors for a “strategic review.” What does that mean? Essentially it’s a euphemism for the company trying to sell itself.
It was Bloomberg who first broke the news, citing an anonymous source. Cornerstone OnDemand, is a cloud-based learning and talent management solutions provider, reportedly tapped Centerview Partners and Goldman Sachs (NYSE:$GS) in order to explore potential bids from suitors and to try to appease Praesidium Investment Management, which announced a 6% stake, or 3.3 million shares, back in February of last year.
What Does the Future Entail?
Rumors of Cornerstone trying to sell itself are not new, as the first emerged in December of last year. Many speculated that Praesidium was the driving force, but at that time the company had not yet gathered financial advisors to look into potential bids.
One thing that we can takeaway from today’s news is that if Cornerstone has really hired financial advisors, this is a clear sign that it is taking a sale more seriously. Even though it’s too early to say if a bid or sale will actually come through, this is definitely a step in the right direction for investors interested in application software.
Featured Image: twitter
