Could Tencent buy Yahoo!?, asks Digital East Asia. They expand on the thought with this gem:
With an enterprise value of $18.5 billion (YHOO has $3 bn in cash) – less than a tenth that of Tencent – it’s not too large for them to swallow.
Umm.
As of today, Yahoo!'s market cap is $21 billion and their enterprise value is $18 billion. Tencent's isn't ten times that. Tencent's market cap is $29 billion and their enterprise value is $28 billion.
What the hell are these guys talking about? This from the people who describe their website as "a way for Western professionals to begin to make sense of it all." If you want to dismiss a competing website's article on Tencent as "mostly a love letter/warning to Silicon Valley", you'd better make sure you get simple facts right.
Sorry - the math was intended to be about the final price - roughly $4 billion for Yahoo's Amercian business to Tencent's $40 billion or so capitalization - AFTER subtracting out cash and investments.
YHOO at 21 Bn - 3 bn cash - 7.5 bn for Alibaba stake - 7 bn for Yahoo Japan.
http://finance.yahoo.com/q?s=0700.HK
Sorry 'bout the badly edited paragraph.
Posted by: Jeremy | Nov 09, 2010 at 04:59 AM