HipMojo.com http://watchmojo.com/web/blog Covering Online Video, Web, Search, Investing, Technology, Strategy, Investing, M&A, Financing, VCs Sat, 21 Nov 2009 21:40:57 +0000 http://wordpress.org/?v=2.1.3 en Yahoo! Shareholders to Yang: WTF? http://watchmojo.com/web/blog/index.php/2008/10/14/yahoo-shareholders-to-yang-wtf/ http://watchmojo.com/web/blog/index.php/2008/10/14/yahoo-shareholders-to-yang-wtf/#comments Tue, 14 Oct 2008 16:55:20 +0000 Ashkan Karbasfrooshan Internet & WebM&AManagementTW AOLYahoo! http://watchmojo.com/web/blog/index.php/2008/10/14/yahoo-shareholders-to-yang-wtf/ SAI is reporting that the Yahoo!/AOl merger is a done deal, and will be announced tomorrow.

The purchase price: $8-10B.  This obviously assumes that YHOO is buying all of AOL.com, including the access business.

Yahoo! is trading at $18B in market cap.  Given that YHOO has all of $1B of cash on hand, this is obviously a stock deal… meaning that YHOO shareholders will have 55-60% of the merged company.  That is not a catastrophe, admittedly, but you have to put this in the context of what has happened in the past 9 months.

Can you imagine the reaction from YHOO shareholders:

- first Jerry Yang turns his back to MSFT’s generous $44.6B offer.

- then YHOO loses more than half of its value less than a quarter after MSFT pulls its offer.

- now this?

Yikes.

]]> http://watchmojo.com/web/blog/index.php/2008/10/14/yahoo-shareholders-to-yang-wtf/feed/