.o..f China's logistic wars. Jingdong Mall just made another round of financing ($700M) to compete against Alibaba's new logistic network. Now is the time for Alibaba group to take on Jingdong Mall. With the IPO resources Jingdong Mall will not be able to compete and Alibaba will take the whole China for ever. Imagine Ebay-Amazon-UPS-Paypal in one company. This is the same size as AAPL, it could be easilly $75B for Yhoo in 2015.
Sentiment: Strong Buy
That doesn't make much of a good reason as AG has invested over $1B into its infrastructure in the past 3yrs. If you followed the "Black Friday" brouhaha, from a few months ago, you'll know they're on pace to make $1B in net income. $2.4B+ and $3.3B, according to Eric Jackson, in the next 2yrs. You shoot yourself in the foot by saying Yahoo's stake would be worth $75B in 2015. Yahoo will have only 10% at that point which would make AG worth $750B. That $700M is 1/10th of 1%. On a $1,000 that is a $1...wow.
As for the discussion below, Gloom is correct in that its from current shareholders. Your mention of buying from shareholders then re-sell them to the public to keep the money doesn't make much sense. What idiot would sell their shares back to the company at a price LOWER than what they would get in the IPO? The only way that scenario works to add money to the treasury is if they do that. What companies DO though to add money is ISSUE NEW shares to dilute the current shareholders.
here: Facebook is increasing the number of shares it will sell in its initial public offering, which could give it the record for amount raised in a U.S. IPO.
Facebook will issue an additional 85 million shares this week, pushing the total number of shares available higher than 420 million. The world's most popular social network raised its proposed price for the shares to as high as $38 in a Tuesday morning filing; if Facebook sells all the shares at that price, it would reap more than $16 billion.
Facebook's valuation at the time of its IPO could increase as well, if it issues additional shares instead of having existing shareholders sell more. In its most recent filing, Facebook said it intends to sell 180 million shares in the company, with early investors and insiders such as CEO Mark Zuckerberg and venture capitalist Peter Thiel selling more than 157 million.
PS. Yahoo fix these reply windows as I can only see 3 lines when typing now!
Who is bigger Alibaba or Ebay (Market Cap=$73B)?, Who is bigger Alibaba or Amazon (Market Cap=$120B)?, Who is bigger Alibaba or UPS (Market Cap=$80B). Let’s do the math 73+120+80=$273B, with a 10% annual growth in 2015 = $330B, and 20% of that (not 10%) is $66B. Now if they take search, then…
Sentiment: Strong Buy
The IPO resources go to current owners, not Alibaba Group. It is they who are selling part of their holdings to the public. Alibaba Group is not selling anything and not getting anything.
Gloom, you failed to mention the 20% of AG that was bought from YHOO, those shares will be in an IPO and proceeds will go to AG corp kitty, AG can also sell shares in the IPO that are authorized but not issued with those proceeds going to AG corp kitty. Ag also has a call on at least half of YHOO's remaining shares, but YHOO will receive the IPO price for these shares. YHOO will, after an IPO, to my recollection have about 10% of the then outstanding AG stock. It is this block that will provide the real gains for YHOO, if the IPO is successful. Fools with misinformation, ie webdave should understand what they write about before looking so dumb. You are far to intelligent to (from your past posts) to be so barish on YHOO. I trade it from both sides, and the side to be on right now is the short side. Until there is real progress on the books instead of just a lot of expensive take over hires, YHOO will trade flat to down and react to market rumors of AG IPO or YJ sell. YHOO does not need cash, so why sell anything? Flat to down with a bottom near 19.75.
What???? If the company does an IPO, a portion of the proceeds may go to selling shareholders and a portion will go to the company. If the company offers 20% of the equity of the company and 10% of the company (half of that) is being offered by selling shareholders, then the company will get half of the IPO money.
Where did you got your MBA in a McDonalds happy meal? The IPO resources go 100% to the company, who then buys out every secondary investor from prior financing (this is part of the pre-IPO negotiations). What is left is fully to the treasure of the company. I
Sentiment: Strong Buy