Just give them the shares at a 10% discount to market price.
And Alibaba could ensure they never hit the market that way.
Really not sure what the longs see here. Amazon is run like a non profit to keep growing at 25%.
Alibaba is run for considerable profit and they are growing at 35%.
Once Spinco is gone, Google, Softbank, Microsoft, maybe FB will all be looking at Yahoo.
Buyout is a given.
No. The tax burden is on Yahoo not Spinco. The spin is worth EXACTLY 385M shares X Baba share price. Say 86. Thats 33 billion dollars, which is the entire value of Yahoo.
Yahoo will never pay a penny of taxes on the Spin. It, without Spinco, is worth over 20B dollars.
When Spinco spins, for example, it will be worth 35 bucks a share.
The Yahoo shares will drop to what? Zero?
The day Spinco goes, Yahoo will be actually valued. 18B in cash and assets, then the brand and userbase.
Thats $21 a share.
We will make $20 dollars from NOW until the Spin. Its free money.
There is NO tax implication to Spinco.
The shares in Baba lock the value of Spinco shares to BABA share value, like a gold ETF.
Because of arbitrage, the Spinco shares will be locked to Baba, not visa versa.
Assuming Baba is flat or even keeps rising, the Spinco shares will actually appreciate.
Patience. This imbalance cannot exist for much longer.
Baba will rise in the coming few months. China is doing better than expected and Baba grows.
Yahoo will either get in a proxy fight or will get an offer for buyout the minute Spinco occurs.
When you have someone at Yahoo like MM that does not seem to be guarding the share value, and also is going on maternity leave for months, its easy to see an activist coming in and taking the company and splitting it up. 20B is all they need, and 8 of that 20B they can use Yahoo's own cash.
They can sell YJ to Softbank for 9B leaving the entire remains of the company and brand, with Tumblr and all the other assets and search for under 3B.
They create 20B in share value for an investment of 3B. Even that 3B is probably worth 10B to msft or google.
32B in Alibaba value.
Yahoo is worth 32B
All of Yahoo Japan, all of Yahoo cash and assets, Tumblr, 1B users, 3rd largest paid search in the USA, all valued at ZERO.
This condition cannot endure. The shares have to come up, or the company will be bought and chopped up.
I am shocked an Icahn has not emerged and sent a letter to the board with this intent.
$20 pop is in the stock ready to explode in just a few months.
But for 20 million bucks, lets just prep the company for sale, gather up all the cash, prime the assets for break up and get an offer on the table.
BABA is worth 30B to be spun off.
Yahoo Japan, plus cash, assets, tumblr, and the nearly 1 billion userbase is worth combined around 20B.
Lets get a legit offer and get out. Yahoo cannot compete or survive vs Microsoft or Google. Lets just take the 20 points left on the table here and move on. We will all be better off for it.
As these companies rise the intrinsic value of Yahoo is increased.
Alibaba is more profitable than Amazon. Tons of money is pouring in to the tech space out of biotech and energy.
Google or Microsoft can buy the Yahoo core for pocket lint now. A rounding error.
This is super bullish for Yahoo. They will be bought post Spinco.
And is growing faster. There is a gigantic value gap here that will be filled into Christmas.
All the shares are unlocked, China consumers are doing quite well, and expansion is under way into other large markets.
Money will pour into Baba, get these shares cheap.
Yahoo is also a great way to play Baba, as most of its value is locked in Baba shares.
Three positive factors lay in our immediate 3 month time frame.
1. Spinoff goes off. Be in December or January, it goes off. (no tax).
2. Activists try to wrestle the company away and dump MM, be it thru buyout or proxy fight.
3. MM willingly leaves Yahoo stating family and baby issues
All of these are great. And I also think BABA will rise and rally into XMAS. \
Just hold tight. Small set back today, but all that matters is Yahoo is CASH, YJ, and BABA.
The rest is just icing.
CNBC said it crystal clear today. We have 1B users, 8B in cash and assets, a 9B stake in Yahoo Japan, as well at Tumblr.
17B of cash and assets can be sold off and the core business of paid search and all the 1B users are going to be bought by Google or Facebook or Microsoft.
There is $20 of unrealized gains locked in Yahoo. Just the whisper that the company is for sale and the shares will run up 10 points.
33.5 is just the beginning of this quick move up.
This company, less Spinco, will be for sale and buyers are lining up.
BABA shares are worth 28B. YJ 9B, cash and assets 9B
Thats 46B, or $49 a share. The core business is worth atleast $1B, more likely $5B
Buy it now while its still cheap.
CO2 is a trace gas. Its measured in PPM.
Yet water vapor is variable. To well over 1%, or 10,000 PPM
No liberal has ever put forth a study to decry increased water vapor levels as a result of irrigation, dams on rivers, artificial lakes, even golf courses.
Mankind has increased the amount of water vapor by a very small amount, but far more than we have increased CO2 levels.
Should mankind open up all the dams?
These are VALID questions. Yet they do not see any concern between a real greenhouse gas and a trace one.
1. Clinton. Closet lesbian, sociopath liar with many criminal indictments pending.
2. Sanders. Anti-capitalist, self avowed socialist.
The rest are nobodies.
Dems are in a hopeless situation. Biden is not likely to make it easier for them when he announces on Wednesday.
Guess again clueless one. Biden will enter the race after the first debate and Schillary will shrivel.
The few emails we know about on her private server are only the tip of the iceberg.