Yahoo! ready to pay $ 9 billion for MySpace
News Corporation CEO Rupert Murdoch in talks with Yahoo! on the exchange of MySpace for a quarter of the company's Internet portal. According to informed sources, negotiations on the exchange began even with the previous CEO of Yahoo! - Terry Semele and continue to this day. Based on the capitalization of Yahoo! the cost of MySpace will be a record amount for such projects - $ 8-9 billion.
Perhaps one of the most coveted for Yahoo! MySpace assets (not including Facebook) can go into the hands of the company. According to unofficial information (published in one of the print media owned by News Corp.), the head of News Corp. Rupert Murdoch in talks with Yahoo! on exchanging a social network for a quarter of Yahoo Internet portal! ..
Information about the negotiations was not commented on by Yahoo! .. According to sources close to the negotiations, they began under the former CEO Terry Semele. How will the situation develop with the new head of Yahoo! Jerry Yange is unknown, according to the Washington Post.
Capitalization Yahoo! as of June 19, 2007 it 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! It’s been trying to enter the social media market for quite some time - first of all, with the help of repeated unsuccessful attempts to get Facebook. The acquisition of MySpace, one of the largest social networks in the world, can certainly help improve the company's shaky business, experts say.
At the same time, for Mr. Murdoch - who, if the deal is completed, will completely lose control of MySpace - the success of the negotiations means that he will gain access to the audience of the Yahoo! Internet portal, which, according to Nielsen / NetRatings, is no less 100 million unique visitors per month.
“In the context of the ongoing Internet boom on the one hand and fierce competition for the audience on the other, the most incredible numbers can become reality,” said Mikhail Gurevich, RBC Deputy General Director. “Moreover, in this case we will talk (if negotiations are successful) about the exchange of shares, and in this case, the prices are often quite inflated in the hope of increasing attractiveness in the eyes of investors and, as a consequence, growth of capitalization."
According to the expert, one should not forget that the prize for leading positions in the Internet industry is often disproportionate, and far from always standard approaches to determining the value of an asset work. Too much in the price of an asset is the hope of continued rapid growth in audience and income. “And that brings us back to what I already mentioned at the beginning: the Internet boom is generating incredible and not proportional prices.” In addition, Mr. Gurevich does not exclude the possibility that rumors about the merger of Yahoo! c Microsoft, perhaps, became the background of this kind of information about the purchase of MySpace. “Sometimes, in order to conduct successful negotiations, it is worthwhile to show your aggressive plans for the future,” the expert believes.
Source: cnews.ru
Perhaps one of the most coveted for Yahoo! MySpace assets (not including Facebook) can go into the hands of the company. According to unofficial information (published in one of the print media owned by News Corp.), the head of News Corp. Rupert Murdoch in talks with Yahoo! on exchanging a social network for a quarter of Yahoo Internet portal! ..
Information about the negotiations was not commented on by Yahoo! .. According to sources close to the negotiations, they began under the former CEO Terry Semele. How will the situation develop with the new head of Yahoo! Jerry Yange is unknown, according to the Washington Post.
Capitalization Yahoo! as of June 19, 2007 it 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! It’s been trying to enter the social media market for quite some time - first of all, with the help of repeated unsuccessful attempts to get Facebook. The acquisition of MySpace, one of the largest social networks in the world, can certainly help improve the company's shaky business, experts say.
At the same time, for Mr. Murdoch - who, if the deal is completed, will completely lose control of MySpace - the success of the negotiations means that he will gain access to the audience of the Yahoo! Internet portal, which, according to Nielsen / NetRatings, is no less 100 million unique visitors per month.
“In the context of the ongoing Internet boom on the one hand and fierce competition for the audience on the other, the most incredible numbers can become reality,” said Mikhail Gurevich, RBC Deputy General Director. “Moreover, in this case we will talk (if negotiations are successful) about the exchange of shares, and in this case, the prices are often quite inflated in the hope of increasing attractiveness in the eyes of investors and, as a consequence, growth of capitalization."
According to the expert, one should not forget that the prize for leading positions in the Internet industry is often disproportionate, and far from always standard approaches to determining the value of an asset work. Too much in the price of an asset is the hope of continued rapid growth in audience and income. “And that brings us back to what I already mentioned at the beginning: the Internet boom is generating incredible and not proportional prices.” In addition, Mr. Gurevich does not exclude the possibility that rumors about the merger of Yahoo! c Microsoft, perhaps, became the background of this kind of information about the purchase of MySpace. “Sometimes, in order to conduct successful negotiations, it is worthwhile to show your aggressive plans for the future,” the expert believes.
Source: cnews.ru