Yahoo will do buyback with $3 Billion Alibaba cash
I reported earlier that Yahoo would do a $2B buyback and $1B dividend. That has been changed to an all buyback. Mayer believes Yahoo is a $30 stock and knows that a buyback is the best use for Yahoo's Alibaba Group cash according to my sources.
Yahoo wanted their new CFO, Ken Goldman, to have time to take a look at the $3.6B distribution even though he is not officially on the payroll yet.. Yahoo was going to do a buyback and dividend but the new Goldman said that Yahoo was under valued at $15.87 and encouraged a buyback with all of the Alibaba Group proceeds according to my sources.