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Yahoo! Inc. (YHOO) Message Board

  • yinvestor yinvestor Dec 19, 2011 10:29 AM Flag

    Why the PEs only want to control 10% - 15% of Yahoo?

    Here is my thoughts:

    1. Buy 10% - 15% Yahoo shares at the cost of under $20 say $18(total investment $2.16B to $3.24B ) to become the largest shareholder and get two seats in the board.

    2. With the support of other Yahoo board members, sell Yahoo Japan to Softbank to get $6B($5B cash)

    3. With the support of other Yahoo board members, sell 40% Alibaba to Alibaba to get $13B($10B cash)

    4. Continue Yahoo stock buyback plan for a couple of years, to buy back up to 1B(currently total is 1.2B) Yahoo shares and retire these shares gradually.

    5. Now the 10% - 15% shares has become 60% - 75% shares, then sell Yahoo core and patent to MSFT or other buyers at $10B - $15B, get $6B - $9B return, that's 300% - 450% return in a couple of years.

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