What’s that giant cackling sound? The great inside-the-box-thinking Wall Street majority reacting to our idea that Yahoo raise $20 billion to buy AOL. Meanwhile, the folks who are actually worth their $10 million+ bonuses are getting down to work.
How might a great banker get this done? Private placement with private equity firms, hedge funds, and major institutional investors, combined with a public offering. Structured transaction whereby Time Warner takes equity and then converts to cash via syndicated derivative deal with big i-banks. Blackstone swallows whole thing and then levers up. Or, you could just take a point or so on a cash sale to Microsoft. Any number of possibilities. When there’s a will and creativity, there’s a way.
It’s a couple hundred million in fees, boys and girls, so get cracking.
See Also: Yahoo Buying AOL–The Hurdles. Microsoft?