Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, September 20, 2024

Article Excerpt

MASTERCARD INC., $492.74, symbol MA on New York, is the world’s second-largest payment processor behind only Visa (symbol V on New York). Mastercard makes money from every transaction it processes for Mastercard-branded credit cards, both domestically and cross-border. The more transactions made by Mastercard account holders, the more revenue the company generates. On September 12, 2024, the company announced its acquisition of Massachusetts-based cybersecurity firm Recorded Future for $2.65 billion. Recorded Future is one of the world’s largest threat intelligence companies with 1,900 clients in 75 countries, including the governments of 45 countries and over 50% of the Fortune 100. Clients include Walt Disney, Microsoft and TD Bank. Recorded Future is one of the first cybersecurity companies to use AI (artificial intelligence) analytics to analyze and identify risks. In the quarter ended June 30, 2024, Mastercard’s revenue rose 11.0%, to $6.96 billion, from $6.27 billion a year earlier. Revenue was higher due to a 17% increase in cross-border payment volumes. The company processed $2.4…