Excellent reporting Mr Toad.
Yahoo's conversion kicks in at 50% above the current market price, or at $53.43 a share. That is a higher threshold than Serv-
iceNow and Microsoft had, whose notes could convert at 37.5% and 33%, respectively.
The terms are favorable to Yahoo. It doesn't have to make regular payments to holders of the notes and doesn't have to issue any new shares until the stock price rises substantially.
The new issuance would dilute existing holders by making their shares less valuable.
But Yahoo also bought, for $70 million, additional insurance against that dilution by buying options from its investment bankers on the deal.
The banks were led by J.P. Morgan Chase JPM +1.43% & Co., along with Goldman Sachs Group Inc. GS +0.75% and others, according to people familiar with the deal.
The hedge covers Yahoo if the stock gains more than 50%, with the option sellers agreeing to deliver stock that would cover what Yahoo had to give, but only up to the point at which the stock is up 100%. If the notes convert beyond that point, Yahoo would have to cover the difference by issuing more shares.
1. When Jonathan Lu announces it.
2. Higher than you can handle.
3. The coldone's screen name is a logo...
The coldone's vacation was fine but weed isn't legal in Florida, so the coldone is happy to be home...
The success of Alibabapalooza phase three is worth celebrating. The coldone is headed to Naples, Florida. The coldone suggests that his army treat themselves to a well deserved vacation also. Prepare for our next attack when the coldone returns!
Yahoo News confirmed Tuesday that it has hired Matt Bai, a political correspondent for the New York Times Magazine, as a national political columnist.
"Matt has an ideal voice for Yahoo News," said Megan Liberman, editor in chief of Yahoo News, in a statement. "He has a singular ability to write about politics in a way that will connect with Yahoo News' broad readership and bring in younger readers who aren't always attracted to political commentary."
Kara Swisher is sleeping on the job. Oh wait a minute, this is good news for Yahoo. That's why Swisher didn't report on it. What a scumball she is...
You're a hotmodel alias. You've been hear for years shorting Yahoo and losing your money. You have to hide while coldone laughs at you...