After Yang… The $28 Private Market Value Analyst Call in Yahoo! (YHOO, MSFT)
Yahoo! Inc. (NASDAQ: YHOO) is trading higher after the announced departure (a firing no doubt) of Jerry Yang in all functions of the company he co-founded. After the resignation news, Gabelli & Co. has issued an opinion calling this clearly…
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Yahoo! Inc. (NASDAQ: YHOO) is trading higher after the announced departure (a firing no doubt) of Jerry Yang in all functions of the company he co-founded. After the resignation news, Gabelli & Co. has issued an opinion calling this clearly a positive. The report noted, “Apart from the $34 per share bid from Microsoft Corporation (NASDAQ: MSFT) that Yang denied, he is seen as the primary roadblock to real change (operational and strategic) at Yahoo!.
It further noted, “Yang’s departure likely reduces the hurdles to an all-out sale of Yahoo’s US business. It also makes a $16-17 Private Equity PIPE deal, which would have been a very large negative, less likely. This could also be the first step in a complete board shakeup which would be a positive.” As far as what Gabelli expects… EPS of $0.45 in 2011.
The firm also has a private market value of $28.00 per share and it continues to recommend a BUY rating. Keep in mind that a private market value is not the same as a formal price target. Thomson Reuters has a consensus price target of $17.77 as of today and that is after a 2.3% gain to $15.78.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
