Yahoo! to buy Overture in $1.6B cash and stock deal

July 14th, 2003 by Loren | No Comments

Yahoo! to buy Overture in $1.6B cash and stock deal - Jul. 14, 2003: ” Internet company Yahoo! said Monday it plans to buy paid Internet search provider Overture Services Inc. for $1.6 billion in cash and stock.

Overture shareholders are to receive $4.75 cash and 0.6108 share of Yahoo! for each of their shares, which puts the value at about $24.41 a share, or a premium of about 13 percent based on Friday’s closing prices.

Overture, which formerly was known as GoTo.com, allows companies to pay to have their sites listed first by users of its search engine. Those companies’ payments, rather than traditional online advertising, are the primary source of Overture revenue. That business segment has some of the fastest growing revenue among Internet companies. Overture’s revenue are expected to rise by more than 50 percent this year over 2002 levels, and 2002 saw more than a doubling in revenue from 2001 levels. “

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