MicroHoo Collapse Casts Doubt on I-bank M&A Divisions

Ashkan Karbasfrooshan wonders aloud about what the MSFT/YHOO debacle says about the M&A advisory divisions of the involved banks:

Microsoft (MSFT) was represented by Morgan Stanley (MS) and Blackstone (BX), while Lehman Bros. (LEH) and Goldman Sachs (GS) represented Yahoo! Goldman can do no wrong in proprietary trading, but what about its M&A advisory unit? Say what you want about the gold standard in investment banking, but on YHOO’s representation, you can’t help but think that Goldman takes a hit, as does Lehman Bros. Maybe they could not manage YHOO or Yang, but as someone who has closed a few deals as an advisor or executive on a management team, I can tell you that managing personalities is a major variable.

Karbasfrooshan goes on to suggest that Microsoft Chairman Roy Bostock may have been too intricately entangled in the deal given that he sits on both boards:

MSFT was repped by Morgan Stanley, what I find odd, so odd, is that Yahoo! Chairman Roy Bostock sits on the board of Morgan Stanley, too. …[T]hat seems too close for comfort.




Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.