eBay + Yahoo = $26.7 billion

Remember way back in the beginning of this year when Microsoft supposedly said it was willing to buy Yahoo for $44.6 billion? (And that was before the company reportedly was willing to bump the offer up even more).

Well, not that I’m actually suggesting anyone do this, but…Thanks to the stock markets’ implosion, if you had enough spare change lying under your couch, you could now buy eBay AND Yahoo for less than that.

Both eBay and Yahoo have seen their stock fall more than 60 percent over the past year. By comparison, Google’s stock is only down about 55 percent. eBay’s stock closed Thursday at 11.17, giving it a market cap of $14.26 billion. Yahoo’s stock closed at 8.95 giving it a market cap of $12.41 billion.

For a quick comparison, Google has a market cap of $81.65 billion, and Amazon has a market cap of $15.03 billion.

Assume then with a combined value of $26.7 billion for Yahoo and eBay, any offer would need to include a premium. Microsoft offered a 62 percent premium back in February. But let’s just assume that someone only offered a 30 percent premium. That would run about $8 billion. Tack that on, and you get a price tag of $34.7 billion.

Now, throw in Amazon, and that would indeed be some holiday bargain: $55 billion to roll up three Internet giants to create a competitor to stand up to Google.

Here’s one other scary thought to leave you with: What if Google tried to buy either eBay or Amazon? It does have quite a bit of cash laying around these days…


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  • Bob S

    And they could call it …




  • Very interesting Chris, As I check my funds… I seem to be few dollars short under my mattress but would be interesting to see if anyone will give that a try.

  • I don’t think that Google would be interested in Yahoo. The only reason Microsoft was interested was because their search engine market share. Google has around 70% of it, some reports say more. Yahoo about 20 and MSN/Live around 6.

    The combination of MSN/Live and Yahoo would result in about 1/3 of the Search engine market.

    Microsoft seems to still be stumbling with search. Their crawlers have a hard time indexing sites it seems. There are many complaints in their forums and on some of my sites I see the same. Yahoo would have helped them out considerably.

    Google doesn’t need Yahoo’s traffic and definately wouldn’t pay a premium for it. I think they helped them out during the buyout talks because of how Yahoo helped them out in the beginning. Plus Yahoo! had a lawsuit out against Google over Overture. That could have prevented them from turning AdWords into the cash cow that it is. The case was settled for something like $12 mil but not even in real money. It was a sweet deal for google.