Mr. Masayoshi Son will buy back all of Yahoo's stake in Yahoo! Japan valued at approximatelt $8 billion. The deal will be structured as a stock swap of Yahoo's Yahoo! Japan shares for Mr. Sons Alibaba Group shares. This swap will value 35% of Alibaba Group at approximately $8 billion USD. After the exchange of shares Yahoo will own 74% of Alibaba Group. This deal will put a firm value on Alibaba Group which will be directly reflected in Yahoo's common stock. My sources have informed me that there will be a formal announcement Monday, March 27 after the close of trading on the New York Stock Exchange.
My sources tell me that it's all settled. Yahoo will remain a minority stake holder in Yahoo Japan and become a minority stake holder in Alibaba Group. Yahoo will keep 10% of Yahoo Japan and will swap the remaining 25% of their stake for 25% of Alibaba group. Jack Ma will buy 15% out of the 25% making him and Alibaba Group a Chinese majority run company. Yahoo will retain 49% of Alibaba Group. The board seats will be worked out accordingly. Softbank and Masayoshi Son will represent Yahoo Japan.
The announcement will be made by April 19.
Again, this deal, if it were to happen, stinks!
If 25% of Yahoo Japan = 25% of Alibaba, then Alibaba is valued the same as Yahoo Japan...about $20 billion.
At the end of the day, Yahoo would own
$10 billion pretax stake in Alibaba
$2 billion pretax stake in Yaho Japan
Get about $3 billion or so for selling Alibaba shares back to Alibaba.
You mentioned Yahoo could also get money for selling voting rights back on its remaining Yahoo Japan stake. At most this would net a few hundred million.
Actually, it is you that is sounding scared.
I'm just having a good time and will soon head off to the club for a quick bite before hitting the links.
Beautiful 18 year old bear cart girl really makes up for the terrible slice I hit.