for anyone interested in YHOO and BCST deal.
regards
BROADCAST.COM (BCST) 118 3/16. No fooling, the deal finally came through. Before the open Thursday, Yahoo (YHOO 168 3/8) announced that it is acquiring Broadcast.com (BCST) for $5.7 billion. Yahoo will issue 0.7722 per share for each share of BCST. Based on Wednesday's closing prices, that means that BCST shareholders get $130 worth of YHOO stock, or about a 10% premium to the current price. YHOO will issue 28,334,000 shares to acquire the BCST shares and another 5,507,000 options to replace BCST options. This means a total of about 34 million new YHOO shares, compared to the 200.5 million shares and options YHOO currently has outstanding. That is significant dilution for buying a company that had $19 million in revenue last year, compared to the $203 million YHOO had last year. BCST also lost about $17 million, and further loses will of course hold back YHOO per share earnings. All that analysis won't matter much, however. The market and Wall Street are going to love this deal. BCST is the leading provider of streaming audio and video on the Net. YHOO gets content and the ability to build beyond being a portal. BCST shareholders get a lot of money. It will also highlight the consolidation in the major Internet companies that could add to shareholder value over time. Another way to look at this is that YHOO is getting BCST dirt cheap. After all, the full price tag here comes to about $5.7 billion. Priceline.com (PCLN), with far less value in Briefing.com's view, is valued at $11.8 billion after it went public this week. BCST is a relative steal. This deal will keep Internet stocks hot and add takeover speculation to a sector that is not lacking for such emotion. Both YHOO and BCST are indicated higher.
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