@ EconAds: Nancy Peretsman, Managing Director, Allen & Co., It’s All About The Buyers


imageHaving been in the middle of some of the most significant digital media deals through her position as Allen & Co. Managing Director, Nancy Peretsman is uniquely qualified to dive deep into the economics of the big stories: Microsoft-Yahoo (NSDQ: YHOO) being particularly noteworthy. During a one-on-one discussion with ContentNext Media publisher and editor Rafat Ali during EconAds, Peretsman predicted the future deal activity will in large part be guided by what, if any, deal Microsoft (NSDQ: MSFT) and Yahoo agree on. “If Microsoft ends up buying Yahoo, I think the landscape for the deals business, or the investment business, will probably be, in the short term, less interesting.” This is straightforward to understand: If Microsoft were to swallow whole, then it would be in the position to do more deals. But if there’s just a JV or a search deal, this leaves open all kinds of opportunities. Yahoo would still likely be an acquirer of smaller content companies, for example. More in extended entry…

This was a key theme of the discussion: It’s not really sellers, it’s about buyers. When the buyers are hungry, times are good and premium companies can get the multiples they want. Take Bebo, for example. “I think people feel like that was a pretty good valuation for Bebo,” Peretsman said to quite a few chuckles. But she defended Time Warner (NYSE: TWX) CEO Jeff Bewkes against the notion that AOL overpaid and that was that. If you decide that you need to be in social networking, and you need to get international, what else is there?

Building on Eyeballs: “For companies that have had a lot of eyeballs, the question that has faced them is

Comments are closed.