Article on TheBigStock talking about Yahoo's business being valued at $0:
Math can be fun, apparently not for most investors though as they are overlooking the current value of Yahoo. Yahoo is close to selling out of Alibaba, and I would imagine that it will be selling Yahoo Japan as well fairly soon. The bottom line is at Yahoo’s current price, its business is being valued at $0. Follow the numbers, you will see.
Yahoo owns 40% of Alibaba, and Alibaba said it would pay a minimum of $7.1 billion in cash and stock for up to half of Yahoo’s 40% stake. The Chinese company also will pay royalties to Yahoo for as long as four years. Of the remaining 20%, Alibaba would have the right to buy as much as half from Yahoo at the share price of a potential public offering of the Chinese Internet giant, or allow Yahoo to sell those shares in the IPO. Yahoo can choose to hold on to the last 10% of its stake or sell it to Alibaba at the market price of Alibaba after it becomes a publicly traded company. Yahoo expects to clear $4.2 billion after taxes on the first 20%, and I would imagine they will clear at least another $4.2 on the remaining 20%.
Yahoo owns 35% of Yahoo Japan, which right now has a market cap of $21.5 billion. Yahoo’s stake is worth $7.5 billion.
If you include all of the other tangible assets that Yahoo owns, and back out the goodwill and other intangibles, then Yahoo’s tangible asset value is $19.4 billion, most of which is cash.