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To: Diamond Jim who wrote (77515)	3/31/1999 9:35:00 PM
From: Amy J	Respond to of 186894

Yahoo will acquire Broadcast.com for $5.7 billion in stock in the second-biggest cyber marriage ever, according to news reports. March 31, 1999 SAN FRANCISCO (CBS.MW) -- Yahoo will acquire Broadcast.com for $5.7 billion in stock in the second-biggest cyber marriage ever, according to news reports. Yahoo (YHOO) made no formal announcement but sent a fax to analysts saying it would host a conference call Thursday at 8:30 a.m. Eastern time. A second note said: "Yahoo broadcasts their news announcement live on the Internet via Broadcast.com." The value of the transaction is $5.7 billion, according to Dow Jones Newswires. That would be equal to about $129 a share, reflecting a 52 percent premium over the stock's value just 10 days ago. Yahoo's market capitalization at the close of trading Wednesday was some $39 billion. Rumor-driven run-up Word that Yahoo was courting Broadcast.com first emerged more than a week ago. Shares of Broadcast.com spiked to 116 1/2 on March 22 after closing at 85 in the prior session. That gave Broadcast.com a $3.9 billion market valuation. Yahoo stock slipped 5 to 165 that day. On Wednesday, Broadcast.com (BCST) rose 4 13/16 to 118 3/16, more than a dollar more than the reported bid. In after-hours trading, the stock ran up to 125 before being halted at 4:36 p.m. Eastern time. Shares of Yahoo fell 3 15/16 to close at 168 3/8 Wednesday and were also halted in after-hours trading on Instinet. The purchase would trail only America Online's (AOL) $9.4 billion takeover of Netscape (NSCP) and AtHome's (ATHM) acquisition of Excite (XCIT), which is currently valued at $5.5 billion, according to CommScan EquiDesk. The expected acquisition announcement Thursday could precipitate another surge among Internet stocks; big acquisitions often fuel expectations of more acquisitions. This would be Yahoo's second major acquisition during the quarter. Its $3.8 billion buy of GeoCities, announced Jan. 28, is expected to close in April.