Every once in a while, there is a Wall Street deal that really makes people stand up and take notice, and the Microsoft Inc. (NASDAQ: MSFT) all-cash bid for LinkedIn Corp. (NYSE: LNKD) is just that kind of a deal. A huge all cash bid with a massive 50% premium gets the merger and acquisitions juices flowing, and it also gets people to start looking for the next candidate.
In a research brief, Axiom Capital says that the need to be all things internet can help to drive further deals in the industry. Five companies are noted as possible candidates, and Axiom is not the only firm on the street that has highlighted some of these companies in the past as takeover targets.
This top internet company has long been rumored to be in play. eBay Inc. (NASDAQ: EBAY) operates e-commerce platforms that connect various buyers and sellers worldwide. Its platforms enable sellers to organize and offer inventory for sale, and buyers to find and buy it virtually anytime and anywhere.
The company’s Marketplace platforms include its online marketplace at ebay.com and the eBay mobile apps, as well as StubHub platforms that comprise its online ticket platform at stubhub.com and the StubHub mobile apps, which enable fans to purchase tickets to the games, concerts and theater shows. Its Classifieds platforms include a collection of brands, such as Mobile.de, Kijiji, Gumtree, Marktplaats, eBay Classifieds and others that offer online classifieds and help people find whatever they are looking for in their local communities.
The Thomson/First Call consensus price target is posted at $28.01. Shares closed Monday at $23.89.
This company is facing ever more competition, but it continues to hold its own. Pandora Media Inc. (NYSE: P) provides internet music streaming services in North America. The company allows its listeners to create personalized stations to access free music and comedy catalogs, as well as personalized playlist generating system, and it offers Pandora One, a paid subscription service to listeners. It also sells audio, display and video advertising to advertisers for delivery on computer, mobile and other connected device platforms.
While Pandora clearly is not the only company with a big desire to be in the music streaming business, it is the current leader in installation and use in the automotive world, with a penetration rate right at 70%, and it hopes to stay that way.
The consensus price target is $13.91, and the stock closed most recently at $11.23 a share.