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Deals like this are made by the board of directors, who represent the shareholders and have a fiduciary duty to them, as well as being shareholders themselves.
by henrikschroder 10y ago
Deals like this are made by the board of directors, who represent the shareholders and have a fiduciary duty to them, as well as being shareholders themselves. So that's your guarantee of it not being a crap deal.
If you do a sum-of-the-parts valuation of Yahoo, you can end up seeing that the core business has a negative value. So holders of YHOO will trade something worth -1$bn for $5bn in cash, that's a pretty good deal.
- martinza 10y agoSum of parts for yahoo is a terrible way to calculate it's actual value. If you look at the balance sheet you'll see billions in deferred taxes. That relates directly towards selling alibaba and yahoo Japan in the open market. The play on yahoo now will be is if yahoo board members can save money on those taxes. If you think they can, you win. If not, stock is trading roughly around the fair price.