<<411 is a solid franchise. Who says the transaction isn't accretive? 411 is fertile advertising ground.>>
From the latest YHOO 10-Q:
[On October 20, 1997, the Company completed the acquisition of Four11 Corporation, a privately held, online communications and directory company. Under the terms of the acquisition agreement, the Company issued or reserved for issuance 1,654,099 shares of the Company's Common Stock for all outstanding Four11 shares, options, and warrants. The transaction will be recorded as a pooling of interests for accounting purposes. The Company expects to record a one-time charge of approximately $4,000,000 in the fourth quarter of 1997 relating to expenses incurred with the transaction. For the nine months ended September 30, 1997 Four11 incurred a net loss of $2,914,000. The Company is in the process of integrating Four11's technology and operations with its operations and any difficulties in successfully integrating this acquired business could have an adverse impact on the Company's short-term operating results. ]
Let's see...Yahoo paid 1.6M shares for a company producing $3M in losses over the last 9 months. In addition, Yahoo will need to take an additional $4M charge in Q4. I can assure you that this transaction is not "accretive". |
