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Yahoo/AOL: $20 Billion

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Analysis By:

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SAI Research

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If Yahoo Buys AOL for $20 BillionYahoo 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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Financing: $20 Billion New Equity

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Offering Price$24

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Capital Raised$20,000,000

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Shares Issued833,333Total2,228,389

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NEW YAHOO:

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Financing: 100% Stock Offering

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Q3 Pro Forma Net Income$343,036

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New Shares Out2,228,389

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EPS$0.15

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Existing Yahoo % Ownership63%

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New Investors % Ownership37%

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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