Yahoo! ready to pay for MySpace $ 9 billion
Head of News Corporation Rupert Murdoch is in talks with Yahoo! on the exchange of MySpace for a quarter of the shares of the company's Internet portal. According to informed sources, the negotiations on the exchange began under the previous CEO of Yahoo! - Terry Semele and continue to this day. Based on the capitalization of Yahoo! MySpace cost will be a record amount for such projects - $ 8-9 billion.
Perhaps one of the most desirable for Yahoo! MySpace assets (not counting Facebook) can go "into the hands" of the company. According to unofficial information (published in a print publication owned by News Corp.), the head of News Corp. Rupert Murdoch is negotiating with Yahoo! about exchanging the social network for a quarter of shares of the Internet portal Yahoo! ..
Information about the negotiations was not commented on Yahoo! .. According to information from sources close to the negotiations, they began under the former CEO of the company Terry Semele. How the situation will develop with the new head of Yahoo! Jerry Young, unknown, according to Washington Post.
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Capitalization of Yahoo! as of June 19, 2007 was $ 37 billion. Thus, MySpace will cost Yahoo! in ~ $ 9 billion. Recall that in 2005. News Corp. acquired MySpace (along with some other related projects) for $ 650 million.
Yahoo! He has been trying to enter the social networking market for quite some time, first of all, through repeated unsuccessful attempts to get Facebook. The acquisition of MySpace, one of the largest social networks in the world, can certainly contribute to improving the company’s shaky affairs, experts say.
At the same time, for Mr. Murdoch - who, if the deal goes through, completely loses control over MySpace - the success of the negotiations means that he will have access to the audience of the Yahoo! 100 million unique visitors per month.
“With the ongoing Internet boom on the one hand and a tough competition for the audience on the other, the most incredible numbers can become a reality,” said Mikhail Gurevich, Deputy Director General of RBC. “Moreover, in this case it will be discussed (if the negotiations are successful) about the exchange of shares, and in this case, the prices are often somewhat overestimated in the hope of increasing attractiveness in the eyes of investors and, as a result, capitalization growth”.
According to the expert, one should not forget that the premium for leading positions in the Internet industry is often disproportionate, and not always the standard approaches to determining the value of an asset work. Too much in the price of an asset is the hope of continuing rapid growth of the audience and income. “And this brings us back to what I already mentioned at the beginning: the Internet boom generates unbelievable and out-of-proportion prices.” In addition, Mr. Gurevich does not exclude the possibility that rumors of a Yahoo! c Microsoft may have become the background of this kind of information about buying MySpace. “Sometimes it is worthwhile to show your aggressive plans for the future in order to conduct successful negotiations,” the expert believes.
Source: cnews.ru
Perhaps one of the most desirable for Yahoo! MySpace assets (not counting Facebook) can go "into the hands" of the company. According to unofficial information (published in a print publication owned by News Corp.), the head of News Corp. Rupert Murdoch is negotiating with Yahoo! about exchanging the social network for a quarter of shares of the Internet portal Yahoo! ..
Information about the negotiations was not commented on Yahoo! .. According to information from sources close to the negotiations, they began under the former CEO of the company Terry Semele. How the situation will develop with the new head of Yahoo! Jerry Young, unknown, according to Washington Post.
')
Capitalization of Yahoo! as of June 19, 2007 was $ 37 billion. Thus, MySpace will cost Yahoo! in ~ $ 9 billion. Recall that in 2005. News Corp. acquired MySpace (along with some other related projects) for $ 650 million.
Yahoo! He has been trying to enter the social networking market for quite some time, first of all, through repeated unsuccessful attempts to get Facebook. The acquisition of MySpace, one of the largest social networks in the world, can certainly contribute to improving the company’s shaky affairs, experts say.
At the same time, for Mr. Murdoch - who, if the deal goes through, completely loses control over MySpace - the success of the negotiations means that he will have access to the audience of the Yahoo! 100 million unique visitors per month.
“With the ongoing Internet boom on the one hand and a tough competition for the audience on the other, the most incredible numbers can become a reality,” said Mikhail Gurevich, Deputy Director General of RBC. “Moreover, in this case it will be discussed (if the negotiations are successful) about the exchange of shares, and in this case, the prices are often somewhat overestimated in the hope of increasing attractiveness in the eyes of investors and, as a result, capitalization growth”.
According to the expert, one should not forget that the premium for leading positions in the Internet industry is often disproportionate, and not always the standard approaches to determining the value of an asset work. Too much in the price of an asset is the hope of continuing rapid growth of the audience and income. “And this brings us back to what I already mentioned at the beginning: the Internet boom generates unbelievable and out-of-proportion prices.” In addition, Mr. Gurevich does not exclude the possibility that rumors of a Yahoo! c Microsoft may have become the background of this kind of information about buying MySpace. “Sometimes it is worthwhile to show your aggressive plans for the future in order to conduct successful negotiations,” the expert believes.
Source: cnews.ru
Source: https://habr.com/ru/post/10971/
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