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Yahoo! Inc. Message Board

  • techinvestorexpert99 techinvestorexpert99 Oct 9, 2010 12:20 PM Flag

    Barron's: Yahoo! Won't Exit Alibaba !

    http://online.barrons.com/article/SB50001424052970203989704575532241582977462.html
    "The Chinese Internet company wants to buy Yahoo!'s shares, but Yahoo! CEO Carol Bartz is smart to hang on until some portion of Alibaba goes public."
    "The presumption is that Alibaba's offer was considerably lower than estimates pegging the stake as high as $11 billion after taxes."
    "ALIBABA APPEARS MOTIVATED to buy out the Yahoo! interest. The Silicon Valley Internet giant brings few advantages to Alibaba, but it could present serious problems with Chinese government regulators. That's because Alibaba's board is expected to expand from four seats to five, with three of them being foreign-held, including two by Yahoo. That simply won't go over well in the People's Republic. Yahoo's public support of Google (GOOG) in the latter's recent spat with the Chinese government hasn't made Alibaba's life any easier, creating even more tension between Yahoo! and Alibaba, a person familiar with the situation says.

    Another key reason Bartz doesn't need to sell right now is that Yahoo! doesn't need the cash to do a big takeover or merger, even though some critics contend that a deal is essential to jump-starting the company's growth. Yahoo! already has $1.18 billion in its coffers, and shareholders probably would clamor for a dividend or one-time cash distribution if the Asian assets were unloaded now.

    The real rub is that Alibaba contends there are no imminent IPOs, but the rest of the investment world seems to think there are, especially if Yahoo! is dispensed with. Thus, the market isn't acknowledging the value of Yahoo's Alibaba investment until the chance of an IPO is more certain, assigning an illiquidity discount to the shares."

    Jack Ma under pressure while losing control! Alibaba Group will be controled by foreigners! Sorry China, Capitalism gains again!

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    • Great article! That is what I am saying all time! Jack Ma is done! Or he buys Yahoo!
      $25-30 it will be!

      • 2 Replies to optionist007
      • Two thoughts:

        1. I am all for yahoo buying Groupon. yahoo needs to stay on top of the ever-changing internet. I'd love for for the market to stir up again about yahoo.

        2. Yahoo (and Bartz) know that they have the upperhand with Alibaba. Yes, Alibaba wants to go public with Taoboa. But they do not want to go public and have yahoo control them, or reap benefits from the IPO.

        Here is what I really think is going on: ALibaba wants yahoo to sink in value so alibaba can purchase yahoo. Comeon which one is a better deal: buy back 40% of alibaba for 11 billion, OR buy yahoo completely (today's market cap 19.5Billion) and get their 40% Alibaba back plus get 50% yahoo australia, 30% yahoo japan and 100% united states yahoo market as well.

        So--with that thought: yahoo is undervalued. It is worth higher than its current pps. Americans need to see this value and buy yahoo shares.

        Disp: yes, i own some yahoo shares.

    • There was no doubt that something was brewing between Jack Ma of Alibaba and Carol of YHOO during this quite period. Now we know that YHOO will not go for less money. Right on Carol. After Oct 25, let us get that IPO and force Jack Ma to do it!

    • It would be refreshing to see China get slapped.

      What's more they can't get 'cute' and attempt to dispute YHOO's status and prerogatives [which I've been thinking about], as they have too much other foreign investment - past and future - at stake.

 
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