GO
Loading...

Is Yahoo On The Auction Block?

Shares of Yahoo! spiked Thursday after the Wall Street Journal reported a group of private equity firms may bid for the Web company.

Specifically the paper reported that Silver Lake Partners and Blackstone Group LP are exploring a bid in conjunction with AOL . The report also said Yahoo hasn't been involved in the talks yet.

Both AOL and Yahoo have declined to comment.

A deal would marry two companies that haven't been able to gain much traction in relentless competition with other online destinations like Google, Facebook and Twitter.

And even if they teamed up "it would still be a struggle to turn around both Yahoo and AOL," said ThinkEquity LLC analyst Aaron Kessler.

He said a deal could help them cut costs by eliminating redundant operations, but putting together two companies that both run search sites and other Web properties won't necessarily generate more revenue.

Nevertheless, if a deal does happen Yahoo is likely to ask for a big premium given that management feels the company's stock is underpriced, said UBS analyst Brian Pitz.

He pegged the lowest per-share offer that Yahoo would accept at $22, which would be a 44 percent premium over Yahoo's closing price of $15.25 on Wednesday.

Hear more about this chatter from Dan Niles of Alpha One. Watch the video now!




______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.

Trader disclosure: On Oct.14, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour owns (AAPL), (GE), (GOOG), (INTC), (MON), (MSFT), (MOS), (POT); Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Terranova Owns (GLD), (APA), (AAPL), (IBM), (EOG), (HES), (OIH), (OXY), (ORCL), (SU), (VRTS), (XBI), ( C), (JOYG), (RIG), (UPL), (PEP), (FCX), (PFE), (HOC), (NOV), (CRM), (MMM), (MCD), (NKE), (CREE), (ISRG), (XLF), (SDS); Terranova is short (APOL); Finerman and Finerman’s Firm own (JPM); Finerman and Finerman’s Firm own (BAC); Finerman’s Firm own (MSFT); Finerman’s Firm owns (RIG); Finerman’s Firm owns (WMT); Finerman's firm is short (IJR); Finerman's firm is short (MDY); Finerman's firm is short (SPY); Finerman's firm is short (IWM); Finerman’s firm owns S&P 500 puts; Finerman’s firm owns Russell 2000 puts

For Dan Niles
Niles and Alpha One own (DELL)
Niles and Alpha One own (AAPL)

For Joe Terranova:
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners own more than 1% of (ABAX)
Virtus Investment Partners own more than 1% of (ALK)
Virtus Investment Partners own more than 1% of (AMKR)
Virtus Investment Partners own more than 1% of (CASS)
Virtus Investment Partners own more than 1% of (CSVI)
Virtus Investment Partners own more than 1% of (IGE)
Virtus Investment Partners own more than 1% of (LDR)
Virtus Investment Partners own more than 1% of (LPHI)
Virtus Investment Partners own more than 1% of (MGRC)
Virtus Investment Partners own more than 1% of (NRCI)
Virtus Investment Partners own more than 1% of (DBV)
Virtus Investment Partners own more than 1% of (XLB)
Virtus Investment Partners own more than 1% of (XLP)
Virtus Investment Partners own more than 1% of (XLY)
Virtus Investment Partners own more than 1% of (XLF)
Virtus Investment Partners own more than 1% of (XLI)
Virtus Investment Partners own more than 1% of (XLU)
Virtus Investment Partners own more than 1% of (SUBK)
Virtus Investment Partners own more than 1% of (WDFC)
Virtus Investment Partners own more than 1% of (YDNT)
Virtus Investment Partners own more than 1% of (DRYS)

For Scott Davis
Morgan Stanley makes a market in (MMM), (CAT), (CMI), (DE), (GE), (HON), Bucyrus International Inc., Caterpillar, Cooper Industries, Cummins Inc., Danaher Corp., Dover Corporation, Eaton, Emerson Electric, Fastenal Co., Hubbell Inc., Illinois Tool Works, Ingersoll-Rand, ITT Corp., John Bean Technologies Corp, Joy Global Inc, Lennox International, Manitowoc Company Inc., MSC Industrial Direct, Mueller Water Products, Navistar International Corp., PACCAR Inc., Rockwell Automation Inc., Roper Industries Inc., Sensata Technologies Holding N.V., SPX Corp, Terex, Textron Inc., Thomas & Betts, Tyco International Ltd., United Technologies, W.W. Grainger, Wabash National Corporation, Watsco Inc., Wesco International Inc..

Morgan Stanley beneficially owned 1% or more of a class of common equity securities of the following companies covered in Morgan Stanley Research: Cooper Industries, Fastenal Co., Honeywell International, Manitowoc Company Inc., Mueller Water Products, Terex, Textron Inc., Wabash National Corporation

Within the last 12 months, Morgan Stanley managed or co-managed a public offering (or 144A offering) of securities of Emerson Electric, General Electric, Hubbell Inc., Lennox International, Manitowoc Company Inc., Sensata Technologies Holding N.V., Wabash National Corporation

Within the last 12 months, Morgan Stanley has received compensation for investment banking services from 3M Co., AGCO, Danaher Corp., Deere, Dover Corporation, Eaton, Emerson Electric, General Electric, Honeywell International, Hubbell Inc., Ingersoll-Rand, Lennox International, Manitowoc Company Inc., Mueller Water Products, Navistar International Corp., Sensata Technologies Holding N.V., Terex, Textron Inc., Tyco International Ltd., United Technologies, Wabash National Corporation

For Brian Stutland
***No Disclosures***

For Joe Lavorgna
***No Disclosures***

For Paul Miller
***No Disclosures***

CNBC.com with wires.

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET

Halftime Report

  • Bill Nygren, Oakmark Fund, explains why Apache, Bank of America and Google will be winners in 2015.

  • Nick Tiller, Sustainable America founder and chairman, tells CNBC's Kate Kelly oil prices are poised for a tradable rally. Tiller likes the Brent ETF and energy sector.

  • Discussing interesting trends contributing to the market's rally into year's end, with the FMHR trader Josh Brown and Dan Greenhaus, BTIG.