Will Quadrangle Partners help save Yahoo from Microsoft’s clutches? We were sceptical to begin with, and we’re even more sceptical after hearing comments from one of the P.E. firm’s executives today.
Recall that Quadrangle’s name has been bruited about (by us and others) as a possible white knight for Yahoo, possibly working in conjunction with NBC. Asked about the possibility of such a deal by the NYT’s Andrew Ross Sorkin, Quadrangle principal Peter Ezersky didn’t come out and explicitly deny one — instead, he noted that he talks to NBC U chief Jeff Zucker once a week, and that he sometimes looks at Yahoo’s homepage while he talks to Jeff.
But it was Peter’s other comments, made at the DeSilva+Phillips media summit, that make a Yahoo deal seem next to impossible. Speaking in general terms, he described how difficult it is to round up financing for any kind of mega-deal:
What any of us can pay for a given business is materially lower than it was 6 months ago. The sub-billion-dollar range is where you see the bulk of deals occurring; the terms with the banks are quite a bit worse.
This sounds right to us. As we’ve said before, we’re sure that Yahoo would love to see a Quadrangle plan. But coming up with money for it is another matter.
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