Thursday, October 4, 2012

YHOO: Gabelli Says Buy, Continues To See Takeout ‘Catalyst’

Regarding last night’s report by DealBook’s Michael de la Merced and Evelyn Rusli that Microsoft (MSFT) is teaming up with Silver Lake and other private equity shops to buy a chunk of Yahoo! (YHOO), the sales team at Gabelli & Co. today sent around a reiteration of the firm’s Buy rating on the stock, as assigned by analyst Brett Harriss.

Harris didn’t issue a formal note, but the desk’s tidbit today relates: “Based on the following sum-of-the parts, we calculate a 2012 PMV of $26″ for Yahoo!� The Japanese assets of Yahoo! are worth $4.85 per share, while the Alibaba Group Holdings are worth $11 per share, and the company has $2.10 per share in cash, leaving a valuation of $7.80 for the U.S. business.”

The firm “expect full acquisition or a break up of the company to be a catalyst,” the desk wrote.

Interestingly, AllThingsD’s Kara Swisher has been keeping tabs on venture capitalist and Netscape founder Marc Andreessen, who some believe could come aboard as a board member or even as chairman in a private equity investment.

Yahoo! shares today are up 41 cents, or 2.7%, at $15.77.

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