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Strategies & Market Trends : The Amateur Traders Corner

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To: BelowTheCrowd who wrote (7603)	3/25/2001 10:40:07 PM
From: Tom Hua	Read Replies (2) of 19633

Old news, I hadn't seen it, thought might be of interest to some. =DJ Prudential Analyst: Yahoo Worth $18/Share In Buyout 13 Mar 18:32 NEW YORK (Dow Jones)--Yahoo! Inc. (YHOO) is worth about $18 a share to potential acquirers, according to Prudential Volpe Technology Group analyst Mark Rowen. The sharp decline in Yahoo shares, fueled recently by the Web portal's warning of lower-than-expected first-quarter results, has prompted speculation that Yahoo has become a takeover target. Some analysts have suggested that traditional media and entertainment companies like Walt Disney Co. (DIS) or Vivendi Universal SA (V) might make an offer for Yahoo!. In a research note issued late Tuesday, Rowen said he doubts an acquirer will emerge at Yahoo's recent trading levels until it becomes clear that Yahoo's earnings are back on track. A potential acquirer would need to look to 2002 performance for valuation purposes, given that 2001 results are expected to be worse than 2000's. If Wall Street begins to believe that Yahoo's 2002 results will match last year's - in particular cash flow of $400 million - a buyer might value Yahoo anywhere between $8 and $25, Rowen said. He said a "reasonable value" was about $18 a share. For a traditional media company to make an offer as high as $18 a share, it would have to expect the acquisition to dilute earnings. But Rowen said that level would be warranted due to Yahoo's strategic value. Yahoo shares closed Tuesday at $16.06, down 31 cents. They are more than 90% off their 52-week high of $205.63 reached last March 22. -By Peter Loftus, Dow Jones Newswires; 201-938-5267; peter.loftus@dowjones.com (END) DOW JONES NEWS 03-13-01 06:32 PM Copyright 2001 Dow Jones & Company, Inc.

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