The IPO is expected to take place in the fourth quarter of this year or early next year at a valuation in the neighborhood of $60 billion to $80 billion. As you all know, Yahoo sold about half of its 40% stake in Alibaba back to the Chinese firm late last year for total consideration of about $7.6 billion. That placed a valuation of around $40 billion on Alibaba. A consortium of nine banks, including Citigroup Inc. (NYSE: C), Credit Suisse (NYSE: CS), Deutsche Bank A.G. (NYSE: DB), HSBC Holdings PLC (NYSE: HBC), J.P. Morgan Chase & Co. (NYSE: JPM) and Morgan Stanley (NYSE: MS) recently refinanced $8 billion in Alibaba debt at lower interest, and the nine are believed to have the inside track on the coming IPO.
With a valuation of $80B, Yahoo's stake in Alibaba is roughly $18.4B.