Filing Flows › Dolby Laboratories (DLB) › Takeover & LBO
Is Dolby Laboratories (DLB) a takeover target?
A leveraged buyout at today's price plus 30% ($75.87 a share) would return a loss of about 2% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. Historically 2.9% of companies with its figures were bought within a year (0.59× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $75.87 | today's $58.36 plus 30% |
| × shares | 94.5 million | |
| = Equity value | $7.2B | |
| + Debt refinanced | $0 | |
| − Cash | $670M | |
| = Enterprise value | $6.5B | 19.6× EBITDA of $332M |
| Fees | $130M | 2% of the price |
| New debt | $1.8B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $4.8B | 72% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $1.4B | $334M | $140M | $131M | $1.7B |
| Year 2 | $1.4B | $338M | $130M | $141M | $1.6B |
| Year 3 | $1.4B | $344M | $119M | $154M | $1.4B |
| Year 4 | $1.4B | $352M | $107M | $169M | $1.2B |
| Year 5 | $1.5B | $362M | $94.1M | $187M | $1.0B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 14.6× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $5.3B | |
| − Debt left | $1.0B | |
| = Buyer's equity | $4.2B | |
| Money multiple | 0.88× | on $4.8B put in |
| Buyer's yearly return (IRR) | −2.4% |
Price against return
What the buyer makes at other premiums over today's $58.36.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $64.20 | 2.9% |
| 20% | $70.03 | 0.0% |
| 30% | $75.87 | −2.4% |
| 40% | $81.70 | −4.6% |
| 50% | $87.54 | −6.5% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $1.4B | |
| EBITDA, last 12 months | $332M | 24.5% of revenue |
| Depreciation and amortization | $92.8M | |
| Capital spending | $44.9M | |
| Debt | $0 | |
| Cash | $670M | |
| Share price | $58.36 | on Oct 13, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows 0.6% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 17% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers in its sector paid a median premium of 14.9% over the share price before the deal (the middle half 9.5% to 33.6%), according to the 17 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Dolby Laboratories would cost about $67.06 a share, $6.3B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 9.5% | $63.90 | $6.0B |
| Median | 14.9% | $67.06 | $6.3B |
| High end (a quarter paid more) | 33.6% | $77.97 | $7.4B |
The odds, from history
Historically 2.9% of companies with its figures were bought within a year (0.59× the average). Its figures put it in decile 2 of 10 (10 = the most likely to be bought). The odds come from a model of every merger proxy, tender-offer response and going-private statement filed on EDGAR since 2011, set against each company's size, margins, debt, cash flow and growth the year before.
Dolby Laboratories' latest quarter
Dolby Laboratories, Q3 FY26: revenue $305M (-3% year over year), operating margin 11.3%, net earnings $28.6M, operating cash flow $167M. The chart follows the revenue to costs, profit and cash.
Questions
Is Dolby Laboratories being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Dolby Laboratories?
A leveraged buyout at today's price plus 30% ($75.87 a share) would return a loss of about 2% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of Dolby Laboratories cost?
Takeovers in its sector paid a median premium of 14.9% over the share price before the deal (the middle half 9.5% to 33.6%), according to the 17 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Dolby Laboratories would cost about $67.06 a share, $6.3B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.