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They don't have a business, at least not one that can support the number of employees they have. Their business is actually worth negative dollars. The only t
by sixQuarks 11y ago
They don't have a business, at least not one that can support the number of employees they have. Their business is actually worth negative dollars. The only thing that was keeping their value high was their Alibaba investment.
- phamilton 11y agoThis is an off quoted, frequently misunderstood statement. If you assume zero discount of the Alibaba stake due to taxes or other uncertainty, then Yahoo has zero or negative value. However, there is >0% chance that the Alibaba stake will be taxed or that Yahoo leadership will sell and spend the money instead if returning it to the shareholders. The more accurate statement is that the uncertainty a "core" business brings outweighs the value of said business. Part of that uncertainty is the tax treatment issue of BABA shares, the other part is a vote of (or lack of) confidence in Yahoo leadership. Yahoo itself has plenty of value. Probably not 10B, but probably more than 1B.
- rokhayakebe 11y agoIf this was true you would be able to purchase Yahoo without AliBaba stocks for $1Billion. However if you walked in with a Billion dollar check and that offer, you will not get a meeting.
- eru 11y agoWhat's good for the shareholders and what's good for management are two separate things.