yahoo inc 2
TRANSCRIPT
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Yahoo Inc.
NASDAQ:YHOO
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Main events in 2008
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The „Microsoft Offer“ fiasco
• Microsoft offered $44.6 bln for Yahoo• … $31/share• … +60% of the market price (Jan 08)• … management refused the offer
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The merge – Microsoft’s revenueRevenue source $ billions
Games & mobile 6.1
Servers & licenses 11.2
Windows 15.0
Office 16.4
MSN/Online 2.5
MSN• Flat growth rate• Burns cash• Ad network: 1/8 of Google’s, 1/3 of Yahoo’s
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Yahoo price per share
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Share price
• 60% premium• Can it be rejected?• (GUESS)
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Microsoft: desperation, no Plan B
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Search volumeSE 2007/8 2007/9 2007/10 2007/11 2007/12
Google 56,5 57 58,4 58,6 58,4
Yahoo 23,3 23,7 22,8 22,4 22,9
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Some ratios
• Looks like serious shortage of advertisers or users
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Low margin
• Looks like serious shortage of advertisers or users
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Balance sheet (millions)
• $44 bln seems like a good deal…
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Profits
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Strength
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Sales
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Management effectiveness
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Summary
• Good, healthy company• ..that makes products that only few people
wont• Google is the one who “gets it”
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Sources
• Google Finance (not Yahoo Finance…)• www.reuters.com/finance/stocks/ratios• www.lupa.cz