Yahoo!, Deal Sends ISDEX Higher’s Internet Stock Index climbed higher Thursdayon Yahoo’s $5.7 billion bid for, sending shares of both Internet media firms up 6% to 10% respectively.

The deal was discounted into both stocks to some extent since YHOO at more than $30 billion market cap was (and is) expected to lead the Internet charge in media. BCST ran 55% last month as the buzz about a possible bidder emerging made the rounds.

Two weeks ago I put a value on BCST at $4.7 billion–Yahoo was willing to go to $5.7 billion. It still paid for the new users at half the valuation Wall Street places on Yahoo users, meaning there could be a “value-trage” opportunity of Yahoo can convert.

The equation is 1+1+1=10 (up from 1+1=3), as Yahoo acquires GeoCities and

In the digital space mergers combine elements in more ways than one, hence how 10 can come from 3. depth and breadth draw out opportunities and I believe Yahoo now looks positioned as possibly the winner in the Internet media space. One more deal would help, or alliances. What area? broadband distribution. Yahoo should consider acquiring Time Warner’s Road Runner service in my opinion.



point change

% change













  • RealNetworks (NASDAQ:RNWK) pops 29% to $157.875 per share on’s deal based on Real being perhaps the only other significant multimedia portal play. How long before AOL comes calling?
  • ISS Group (NASDAQ:ISSX) a leading Internet security software maker, announces a 2-for-1 stock split. The firm came under fire from a Barron’s article March 28 that played up growing competition from larger rivals. Security is getting more competitive as companies seek solution providers in all areas of security and want more services to support them I believe.
  • Looksmart, a privately-held Internet guide, raises $60 million from a series of venture and capital sources. At the same time (and probably due in part to the success of iVillage’s IPO) Looksmart says it’s now focused on being a “women’s portal.” Part of that comes from its 61% female users already on the service. Post-money valuation was about $400 million. I expect Looksmart to be looking smarter if it gets an IPO off soon.

  • News Around the Web