Yahoo!: Jefferies believes deal with MSFT the most likely outcome at a lower offer than "full" pric

Thursday, February 14, 2008

Jefferies says for YHOO to be worth $40+/share to MSFT (a price the board is suggested to be seeking if acquired, though unsubstantiated), it needs to support very aggressive revenue and EBITDA margins re-acceleration combined (with substantial cost savings,) which while not impossible remains highly unlikely. The firm continues to believe that a deal with MSFT is the most likely outcome, but at a lower offer than "full" price, even with Google (GOOG) and NewsCorp. (NWS.A) in the mix.