Overstock Shares Soar 20% Following Acquisition Of Bed Bath & Beyond Assets: What You Need To Know

Overstock.com Inc OSTK has won an auction to acquire some of Bed Bath & Beyond’s assets for a little more than $20 million. Overstock emerged as a stalking horse bidder for some of the bankrupt Bed Bath & Beyond’s assets last week. 

Shares of Overstock traded up almost 20% Thursday on the news. Overstock and Bed Bath & Beyond's stocks have both been popular among retail investors on Reddit and other social platforms. Ryan Cohen, the billionaire founder of Chewy, invested in Bed Bath & Beyond's stock last year, causing the price to skyrocket, only to dump the shares a few months later. 

It appears that Overstock's stock is once again gaining attention among retail investors throughout different social media sites. The company was one of the top-five trending stocks on StockTwits website Thursday.

Many retail investors lost money following Cohen into his Bed Bath & Beyond investment. Bed Bath & Beyond's stock is still trading on the OTC Markets under the ticker 'BBBYQ'. 

Read Also: Bed Bath & Beyond Stock On The Rise As Overstock Emerges With Stalking-Horse Bid

Details Of The Deal: Overstock will take over Bed Bath & Beyond’s intellectual property and digital assets. Bed Bath & Beyond has decided to sell its ‘Buy Buy Baby’ line separately from its core business. 

The deal still needs to be approved through a hearing next Tuesday. Ten Twenty Four, a software company, also put a bid on Bed Bath’s assets in case the Overstock deal falls through. 

Overstock’s deal to purchase some of Bed Bath & Beyond’s assets will not keep Bed Bath & Beyond stores open, but instead, allow Overstock to take over some of the brands under Bed Bath & Beyond’s umbrella such as the Wamsutta linens and sheets label. 

Bed Bath & Beyond filed for Chapter 11 bankruptcy a few months ago in April after failing to recover from headwinds brought by the COVID-19 pandemic. Overstock.com, which primarily operates through its e-commerce business, will hope to be able to revive some of Bed Bath & Beyond’s brands that still have consumer recognition.

Price Check: Shares of Overstock were trading 19.83% at $25.33 at the time of publication on Thursday.

Now Read: If You Invested $1,000 In Apple When Warren Buffett Bought Shares, Here's How Much You'd Have Today 

Photo: Shutterstock