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Interesting data for Yahoo! Japan and Microsoft/Yahoo! deal

Eurotechnology.com sent an email detailing some information about the japanese operation that Yahoo! has. Yahoo! Japan has 100% profit margins. I always know that their operation in Japan was generating profit but never thought it was generating profit in this scale. Too bad (or good) this is not part of the deal.

Here is part of the email Eurotechnology sent to their subscribers:

Microsoft has offered US$ 44.6 Billion to acquire all outstanding shares of YAHOO Inc. Interestingly, Microsoft would actually only get about 72% of all of YAHOO for this money: all of YAHOO Inc + 33% of YAHOO-Japan. The remaining 67% of YAHOO-Japan (=28% of global YAHOO) will remain with current share holders and will remain traded on the Tokyo Stock Exchange for the time being.

YAHOO-Japan is far more successful than YAHOO Inc. Assuming the same 62% Premium, Microsoft would be offering an additional US$ 28 Billion for the remaining 67% of YAHOO-Japan.

YAHOO-Japan is in much better shape than YAHOO Inc.: YAHOO Japan’s profit margin is close to 100%, while global YAHOO Inc’s profit margin is about 18%.

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