Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Broadcast.com (Acquired by Yahoo) -- Ignore unavailable to you. Want to Upgrade?

To: B. A. Marlow who wrote (909)	3/22/1999 7:58:00 AM
From: JB2	Read Replies (1) \| Respond to of 1260

BCST up 16% now, in Frankfurt. BTW thanks B.A. for that link. I'd been wondering how to get some early quotes.

To: B. A. Marlow who wrote (909)	3/22/1999 5:14:00 PM
From: Sleeper	Read Replies (1) \| Respond to of 1260

Broadcast.com shares up 37% on talk of takeover by Yahoo By Bambi Francisco, CBS MarketWatch Last Update: 1:56 PM ET Mar 22, 1999 NewsWatch Internet Daily NEW YORK (CBS.MW) -- Shares of Broadcast.com jumped 37 percent Monday on speculation Yahoo may buy the Dallas-based provider of audio and video for the Internet. BusinessWeek Online, citing an unidentified source, said Yahoo Chief Executive Officer Timothy A. Koogle and Yahoo co-founder Jerry Yang have been meeting with executive from Broadcast.com. Yahoo had no comment, and Broadcast.com said the company won't "comment on rumors." At Broadcast.com's closing price Monday, its market capitalization stands at $3.9 billion. Broadcast.com could fetch a price as high as $140 to $150 per share, analysts said. Broadcast.com (BCST) shares rose 31 1/2 to 116 1/2. Yahoo (YHOO) shares fell 5 to 165. "Even at a premium for Broadcast.com, the deal wouldn't be terribly dilutive for Yahoo," said Ryan Jacob who runs the Internet Fund. "Everyone is focused on scale right now." "With Yahoo's market cap, it's one of the few companies that can swallow this company," said Dalton Chandler, Internet analyst at Needham & Co. Yahoo's market capitalization as of Monday stands at $33 billion. But given that Broadcast.com isn't profitable, any price would be dilutive, Chandler said. Strategic plus Even so, some analysts believe a combination makes strategic sense. "It's a major strategic plus for Yahoo," said Bruce Smith, Internet analyst at Jefferies & Co. "Broadcast.com is a great brand to add under the Yahoo umbrella and the portal can significantly enhance Broadcast.com's already dominant position in the streaming media space, Smith said. Besides, Smith added, the valuations of Internet stocks are not based upon earnings in the near-term, so a dilutive transaction wouldn't really matter in this case. Yahoo already has a relationship with Broadcast.com, making a marriage or deeper partnership a logical step for the portal. "Yahoo likes to own and operate technology companies they deal with," said David Levy, Internet analyst at ING Baring Furman Selz. In January '98, Yahoo, Intel and Motorola were primary investors in a round of financing that raised $22 million for Broadcast.com. The company currently owns less than 2 percent of the broadcast aggregator, a Broadcast.com spokesperson said. Broadcast.com provides streaming video and audio for the portal. Meanwhile, Yahoo is doing quite well on its own. The latest Media Metrix numbers for February show the portal jumped to second place, from third a month ago, with a 51.8 percent reach. Competition for Broadcast.com Being added to the Yahoo fold would strengthen Broadcast.com's position to compete with new rivals such as CMGI-backed Magnitude Network. At PaineWebber's Internet conference, CMGI general partner Peter Mills said CMGI is committed to its broadcast initiative, saying "we need to play hard and we won't let resources stand in the way." This past February, the Internet incubator announced a strategic partnership with Neil Braun, the former President of NBC Television Network, to build and launch a new company in the Internet broadcast arena. Magnitude Network will be folded into the new company. Intervu (ITVU), another provider of so-called streaming media services, saw its shares surge as well. Shares of Intervu catapulted 13 5/8 to 47. Unlike Broadcast.com, the company provides an out-sourced streaming services and is not a content aggregator. The company provides all streaming capabilities for NBC's entertainment content, according to a company spokesperson. NBC owns 9 percent of Intervu. sleeper