Analysts: Recent Deal Great for Google, Moderately Good for Yahoo!

6/13 - "Imran Khan, J.P. Morgan: “We think that Google is the big winner in this deal. We think Google will benefit in 3 key ways: 1) we think Google will gain ~$90M in net revenue from the outsourced Yahoo! search, 2) Google could gain an additional $182M in F09 net revenue through migration of some of Yahoo!’s affiliate network to the Google platform, and 3) Google could get an additional $288M in F09 revenue if RPS [revenue per search] grows 3% from the increased volume. In sum, we think Google could increase its F09 revenue by ~$560M and its EPS by ~$1.31.”

Ross Sander, RBC Capital: “Google investors stand to benefit two-fold from recent announcements from the Yahoo team: 1) the termination of discussions between Yahoo and Microsoft should allow Google`s multiple to expand and 2) more directly, Google could earn up to $700m in incremental annual cash flow once...