Brilliant Maneuvering Gives Marissa Mayer $4.5 Billion To Play With
In the next week, Yahoo will finally complete the sale of a major portion of its holdings in Chinese Internet company, Alibaba.
This will net the company $7–$4.5 billion after taxes.
mb99 broke the story here first.
Yahoo's stock price would surely benefit in the short term from a buyback or a fat dividend, but what Yahoo needs in the long term is to invest that money in a series of new products that can restore organic growth to the company's top line.
We know that Yahoo's previous few CEOs would have liked to have pulled a similar move with the Alibaba proceeds, but perhaps none of them had Mayer's apparent willingness to tell board members and major shareholders to shove off.