$Chegg(CHGG.US) has been battered by ChatGPT, but its brand, user data, and content library still have residual value, making it a good target for a low-priced acquisition. Rumors of acquisition by Pearson or private equity funds have surfaced intermittently, with the historical average premium for similar edtech M&A ranging from 35% to 55%. Regulatory risk itself is low, but if Chinese capital gets involved, political variables could significantly lengthen the approval cycle. GEX has been negative over the past 90 days, and no significant large order anomalies have been observed in the options chain.
Long-term strategy: Hold out-of-the-money calls with a maturity of over 12 months, using a small position to bet on M&A or AI transformation catalysts, with cost control being the core 🤔
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