Yahoo Is So Cheap Right Now, It’s Basically A Free Takeover Target

carol bartz

[credit provider=”AP”]

With the market in crash mode, Yahoo’s stock is slumping to a 52 week low.This is getting people who like to play what we’ll call “fantasy M&A” excited, because Yahoo’s core business is now being valued at zero. Fantasy M&A players are saying it’s a free acquisition for anyone that wants it, per Bloomberg.

Here’s how we get to free: Yahoo’s Asian assets are worth at minimum $16 per share, says analyst Di Zhou of Thornburg Investment. Yahoo’s $2.55 billion cash is worth another $2 per share. Add it up and you’re at $18 per share.

The stock closed at $11.09 yesterday.

If a company were to offer a 63% premium they’d get Yahoo’s core business for nothing.

You can argue about the direction of the company under Carol Bartz, but there’s no arguing that it’s worth zero.