2 ms·
Expected to happen at end of year because shareholders basicly insisted on it. Yahoo owns a minority stake in Alibaba - a huge fast growing company. Yahoo is w
by spikels 11y ago
Expected to happen at end of year because shareholders basicly insisted on it.
Yahoo owns a minority stake in Alibaba - a huge fast growing company. Yahoo is worth $30 billion but the Alibaba stake is worth $23 billion* and they also have a minority stake in Yahoo Japan worth $2 billion* and $5 billion in cash.
It doesn't make sense for an operating company to hold investments worth many times more than their core business. Yahoo today trades more on what happens to Alibaba than anything Yahoo management has control over. This has perverse effects like huge management incentive bonuses based solely on Alibaba's success. Not to mention they would have saved billions in taxes if they had spun it off years ago.
*-pre-tax
http://www.cnbc.com/2015/10/21/yahoos-business-now-worth-less-than-nothing.html http://www.cnbc.com/2015/10/21/yahoos-business-now-worth-les...