Technology

Details Of Yahoo! (YHOO) Break-Up From Bernstein Research

24/7 Wall St. has obtained a copy of the Bernstein Research report on the break-up of Yahoo!.

The first model done by Bernstein assume that the company is broken into three parts.

The first piece is Display Advertising. Using comparable figures for valuations of companies including DoubleClick, the value of this unit is put at $25.5 billion.

The next piece is the Search Unit. Looking at the values of Google (GOOG) and Ask.com, the research firm values this piece at $15.6 billion.

The last piece is Subscriptions. To get a value for this Bernstein used Match.com and RealNetworks (RNWK) and came up with a value of $1.3 billion.

The values of Yahoo! Japan and China e-commerce company Alibaba was added to cash and net operating losses, bringing the total break-up value of Yahoo! to $54.3 billion, or $38.65 a share.

Bernstein offered a second analysis based on Yahoo! outsourcing its search business to Google. If this was done, search revenue would rise 28% in 2008, and total revenue by 16% over current projections. Yahoo! could cut 25% of its head count dropping operating expenses by 17%. The combined benefit of these actions would improve operating income by 205% over current Wall St. estimates.

Maybe Yahoo! could contract out management of the company to Bernstein.

Douglas A. McIntyre can be reached at douglasamcintyre@247wallst.com. He does not own securities in companies that he writes about.

Sponsored: Tips for Investing

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.