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Forget Murdoch: Yahoo! Should Buy Dow Jones

Posted By Barry Ritholtz On May 10, 2007 @ 9:45 am In Media | Comments Disabled

Tscm_logo [1]

My Real Money [2] YAHOO/DJ column is now on (free) TheStreet.com site [3]:

"If Yahoo! grabs Dow Jones, (pardon the dirty word) the synergies
make a lot of sense. They get a primo media property that has a growing Web
presence that fits into Yahoo’s existing business model. And, it creates a
broader network to serve ads, both online and off. It’s a strong way to combine
the highly-sought-after, high-income demographic of the Dow Jones properties
with the high-volume Web traffic Yahoo! generates.

It also adds some bulk to an entity falling increasingly behind
archnemesis Google (GOOG) in the online advertising space. Yahoo! could
add another $1.783 billion per year in revenue — a nearly 30% bump for the
firm, which did $6.4 billion in total revenue in fiscal 2006 — and it also adds
another $386 million in profits, a number that almost doubles Yahoo!’s
profitability.

Yahoo sports a trailing price-to-earnings ratio near 60, while Dow Jones
trailing P/E ratio is near 18. If Wall Street puts an online multiple on the
revenue, it raises the potential stock price of the combination dramatically."

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Click on over [3] and read the whole thing . . .

>


Source:
  [3]Forget Murdoch: Yahoo! Should Buy Dow Jones [3]
TheStreet.com, 5/9/2007 7:41 AM EDT
http://www.thestreet.com/markets/activetraderupdate/10355536.html


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2007/05/forget-murdoch-yahoo-should-buy-dow-jones/

URLs in this post:

[1] Image: http://bigpicture.typepad.com/photos/uncategorized/2007/05/09/tscm_logo.png

[2] Real Money: http://www.thestreet.com/p/rmoney/media/10355436.html

[3] (free) TheStreet.com site: http://www.thestreet.com/markets/activetraderupdate/10355536.html

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