Summary:

Flash analyst commentary on the deal is starting to come in. Expect a lot more discussion today and in the days ahead. We’ll update as we ge…

imageFlash analyst commentary on the deal is starting to come in. Expect a lot more discussion today and in the days ahead. We’ll update as we get more:

Imran Khan, JP Morgan: Quick reactions: Yahoo (NSDQ: YHOO) shareholders should accept the deal as it represents a generous premium. Regulators are not likely to block the combination, since the companies will have less than 30 percent of search market share, still will below where Google (NSDQ: GOOG) is. Advertising scale: both companies suffer from a lack of it, so this helps solve that, driving upside. Savings: The companies have a number of duplicative efforts in search monetization, sales and technology, so this will drive cost savings.

Doug Anmuth, Lehman Brothers: “We blv the proposed acquis of YHOO by MSFT makes strong strategic sense for both sides and we believe it will likely be accepted by YHOO.” Key points: Backing out Yahoo’s non-core holdings, the deal values Yahoo’s operations at $23 per share, “more than 2x the $11 value which last night’s close would suggest.” Competitive position: “Combo would have signif. lead over AOL (NYSE: TWX), GOOG in: Display, Email, IM, verticals incl. Finance.”

Spencer Wang, Bear Stearns: Wang analyzes the deal from the perspective of Time Warner’s AOL business. The good: The offer for Yahoo means there’s value in any property that has size and audience. The bad: Assuming Microsoft (NSDQ: MSFT) and Yahoo tie-up, this means two fewer potential buyers of AOL, possibly reducing the market value of the unit.

Mark May, Needham & Co.: “Ultimately we think the deal goes through.” May suspects some investors would rather give CEO Jerry Yang the chance to execute on his turnaround plans, but that there are a lot who are simply frustrated by the lack of a change. He notes, as others have been pointing out, that while the offer represents a big premium to Yahoo’s latest closing price, it’s only about 15 percent above the company’s 52-week average.

Jeff Lindsay, Bernstein: “The strategic and competitive benefits as well as the opportunity for MSFT to show rapid progress in the OSB (online services business) segment which is so critical to their longer-term growth story should materially benefit the stock in the medium to long term.” Deal likely to happen: “It is not clear whether or not the Yahoo! board will accept this unsolicited offer, the original founders Jerry Yang and David Filo own a combined 10% of the company. There is also the possibility of a white night/counter offer from another large media player (but not Google because of anti-trust considerations) but we think these outcomes are unlikely and the deal will be accepted“.

You’re subscribed! If you like, you can update your settings

Comments have been disabled for this post