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Yahoo/AOL Financial Impact

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Analysis By:

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SAI Research

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If Yahoo Buys AOL:Yahoo Q3AOL Q3New Yahoo Q3

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Revenues$1,767,506$1,219,000$2,986,506

.

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Operating Income$150,192$295,000$445,192

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Margin8%24%15%

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Net Income$151,286$191,750*$343,036

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Margin9%16%11%

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EPS$0.11

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Shares Out (Diluted)1,395,056

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*35% tax

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YHOO Price$28

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YHOO Market Cap$39,061,568

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AOL Price (Low)$12,000,000

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Shares Issued428,571Total1,823,627

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AOL Price (High)$15,000,000

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Shares Issued535,714Total1,930,770

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NEW YAHOO:

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Low AOL Price

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Q3 Pro Forma Net Income$343,036

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New Shares Out (Low AOL Price)1,823,627

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EPS$0.19

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Yahoo % Ownership76%

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Time Warner % Ownership24%

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High AOL Price

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Q3 Pro Forma Net Income$343,036

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New Shares Out (Low AOL Price)1,930,770

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EPS$0.18

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Yahoo % Ownership72%

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Time Warner % Ownership28%

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Published By:

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Silicon Alley Insider

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Blue = Assumptions

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Red = Estimates