Before we start sounding like the Yahoo board, does anyone know the following:
What is the short interest in CDNW?
Who is the largest institutional holder?
Legal ramifications if they were to only buy CDNW? What about NTKI holders?
Any thoughts on size of transaction? Someone estimated that 500M was a drop in the bucket for TWX.
17.7M shares outstanding, 4M float for CDNW
14.2M oustanding for NTKI and 10.7 float.
Yahoo has market cap for NTKI at 232M
Yahoo has market cap for CDNW at 385M
Combined market cap is 617,000,000
Using the outstanding as the number and the conversion from the merger, I come up with 26,477,000 shares for the merged company.
I am not a financial analyst, but if you take the combined market caps and the combined shares, you come up with $23/share.
That does not constitute any type of premium. I'm saying there must be a 30% to 40% premium on this deal. Upside for Time Warner is huge. 40% premium puts it at $32.50/share and a 50% premium puts it at $35/share.
52 week high, while it was a farse, the 52 week high is still $39.
Thoughts? |
