"The terms of the deal are slightly more favorable to YHOO than initially thought," says a research note from Jefferies & Co. Wednesday afternoon, after the analysts looked at the 8-K SEC form filed by Yahoo! Inc. (NASDAQ:YHOO) late Tuesday. "We're maintaining a Buyrating and $20 target on valuation and long-term growth prospects of the business."
As Dealscape
reported earlier, Yahoo!'s 8-K provides details about the deal with Microsoft Corp. (NASDAQ:MSFT), including payments, reasons for terminating the arrangement and employment issues.
Say the Jefferies analysts:
Bottom line, the deal looks slightly more positive for YHOO. Lack of a large upfront payment and annual guarantees, and complex systems integration still are negative short-term issues for
the stock; we believe however that the right control structure, significant cost savings and increased focus on Display should be positives for both partners long-term.
Yahoo! shares are essentially flat in midafternoon trading Wednesday
. - Mary Kathleen Flynn
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