Barclays Maintains an 'Equalweight' on Yahoo! (YHOO); Alibaba Group to 'Open Sesame'?
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Price: $52.58 --0%
Rating Summary:
18 Buy, 21 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
Rating Summary:
18 Buy, 21 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
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Barclays maintains an 'Equalweight' on Yahoo! (NASDAQ: YHOO) price target of $19.00.
Barclays analyst says, "Last night Bloomberg reported that Alibaba Group and Softbank, in conjunction with Blackstone Group and Bain Capital, were preparing financing for a bid to buy YHOO outright. We believe a bid for the entire company from this group, if adequately priced, yields this best potential for unlocking value for shareholders. We think the bid makes sense as Alibaba Group CEO Jack Ma has in the past expressed strong interest in YHOO and the 40% stake in Alibaba it owns. An Alibaba led group also has the best potential to unlock this value in a tax free manner as it could re-acquire this 40% ownership interest in a transaction that would essentially act more like an asset swap than an outright sale."
"Separately, yesterday Bloomberg announced that a group of investors led by private-equity firm Silver Lake (including Microsoft (Nasdaq: MSFT) and VC firm Andreessen Horowitz) made an offer to buy a ~20% minority stake in YHOO for $16.60 per share. We view this bid as a disappointment as we believe there were higher hopes for this consortium to make a bid for the entire company. Although we have a $19 price target, we believe it could be a long and bumpy road before full value is unlocked if YHOO were to only
sell a minority stake."
For an analyst ratings summary and ratings history on Yahoo! click here. For more ratings news on Yahoo! click here.
Shares of Yahoo! closed at $15.71 yesterday.
Barclays analyst says, "Last night Bloomberg reported that Alibaba Group and Softbank, in conjunction with Blackstone Group and Bain Capital, were preparing financing for a bid to buy YHOO outright. We believe a bid for the entire company from this group, if adequately priced, yields this best potential for unlocking value for shareholders. We think the bid makes sense as Alibaba Group CEO Jack Ma has in the past expressed strong interest in YHOO and the 40% stake in Alibaba it owns. An Alibaba led group also has the best potential to unlock this value in a tax free manner as it could re-acquire this 40% ownership interest in a transaction that would essentially act more like an asset swap than an outright sale."
"Separately, yesterday Bloomberg announced that a group of investors led by private-equity firm Silver Lake (including Microsoft (Nasdaq: MSFT) and VC firm Andreessen Horowitz) made an offer to buy a ~20% minority stake in YHOO for $16.60 per share. We view this bid as a disappointment as we believe there were higher hopes for this consortium to make a bid for the entire company. Although we have a $19 price target, we believe it could be a long and bumpy road before full value is unlocked if YHOO were to only
sell a minority stake."
For an analyst ratings summary and ratings history on Yahoo! click here. For more ratings news on Yahoo! click here.
Shares of Yahoo! closed at $15.71 yesterday.
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