20 Takeover Rumors Hedge Funds Are Buying

9. Chewy, Inc. (NYSE:CHWY)

No. of Hedge Funds: 48

Florida-based company Chewy, Inc. (NYSE:CHWY) is a leader in e-commerce retailing. The company focuses on pet food, supplies, medications, and services. Their core value proposition lies in a seamless digital customer experience, subscription-based replenishment, and 24/7 customer service. With competitors like Amazon and Petco, the company competes for market share and differentiates itself through deep vertical integration in pet health and a data-driven personalization engine. Structural e-commerce tailwinds and increasing pet humanization trends favor the company’s revenue generation and customer retention growth.

In December 2024, a company’s primary investor, BC Partners, sold their ownership in Chewy, Inc. (NYSE:CHWY) for a value of $500 million. The company subsequently repurchased a portion of ownership amounting to $50 million from the selling entity. Though the transaction indicates the restructuring of the ownership, it also prompted the takeover rumor of the company. Prominent retailers and e-commerce giants like Amazon and Walmart are regarded as potential buyers for this supposed takeover in 2025. The giants could use the strong customer base of Chewy, Inc. (NYSE:CHWY), which has developed in the pet industry, to enhance their market presence further.

Institutional confidence in the company remains strong, with 48 hedge funds piling on the stock. Analysts believe that the company’s potential takeover could have boosted this confidence.