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Daxiang Xu. Boris Logvinskiy. Bernard Low. Shu Yang Quek. Irina Issakova. Team Purple Knights DART of Yahoo! 1995 Case E-145 October 1, 2007. Purple Knights’ Decision. Jerry and Dave should accept the offer by Sequoia Capital.
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Daxiang Xu Boris Logvinskiy Bernard Low Shu Yang Quek Irina Issakova Team Purple Knights DART of Yahoo! 1995 Case E-145 October 1, 2007
Purple Knights’ Decision Jerry and Dave should accept the offer by Sequoia Capital. We feel that Sequoia Capital with its track record and networks can assemble a management team and offer resources to help Yahoo! achieve its maximum potential.
Economic Analysis • We have ruled out options 3 and 4 because they do not coincide with the vision of the founders • The main concern with accepting the funding from Sequoia Capital is giving up 25% of the company for $1m • This can potentially cause a lot of dilution further down the road if future funding is needed. • The value for Yahoo! was derived assuming the business model is based on cost by impression advertising