Yahoo Japan has bounced nicely post Microsoft's bid for its parent. Although there were some synergies between Yahoo Japan and Microsoft's Japanese business, the deal would not have provided a major earnings kicker to Yahoo Japan's profitability over the next few years. Without projecting a massive improvement in the advertising sector, it is tough to square the circle on the current punchy valuations. Hence we have exited the position.
In Japan, Yahoo provides the functions of not only Yahoo 'Global' but also Google and Ebay - it runs the largest and most used search engine, as well as the most popular auction website. 20 million people have an email account with them and they dominate internet advertising with a 50% market share. As consumption picks up in Japan, advertising spending is set to rebound, especially online. Yahoo Japan is ideally placed to benefit.
| Sedol |
Type |
Price |
Date |
| 6084848 |
Sell |
JPY 43,966.73 |
08/05/2008 |
| 6084848 |
Buy |
JPY 42,929.188 |
25/06/2007 |
|
