YHOO: Yahoo buys CDN startup; Citi hikes PT due to Alibaba

Yahoo buys CDN startup; Citi hikes PT due to Alibaba • 5:16 PM

• Yahoo (YHOO -0.6%) has acquired PeerCDN, developer of a content delivery network (CDN) platform that relies heavily on peer-to-peer (P2P) traffic between users to lower bandwidth costs.
• PeerCDN asserts a CDN leveraging its platform can lower bandwidth expenses by up to 90%, and (thanks to its use of JavaScript) can deliver content without requiring any browser plugins.
• Yahoo might be interested in using PeerCDN's technology for its own video streaming efforts. The company recently bought live concert streaming platform Evntlive, and yesterday announced a Winter Olympics coverage partnership with NBC.
• Meanwhile, Citi's Mark May has hiked his Yahoo PT to $46 from $39, even as he cuts his 2014 adjusted EBITDA forecast to $1.32B from $1.5B. His reason, unsurprisingly, is Alibaba: May now grants the Chinese e-commerce giant a forward P/E of 29 (up from a prior 22), and notes Yahoo will still own a 14% stake (down from a current 24%) post-IPO.
• RBC gave Alibaba a $150B valuation last week, and assigned Yahoo's stake a $36B pre-tax valuation.

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