So from 32% to 28% worth about $7.9B fully coordinated sale transaction between Mr. Son and Jack Ma so I didn’t see any surprise for this deal. I think the deal breakdown is as follows:
--$2B sale goes to Alibaba itself
--$5B sale to institutional investors
--$500M sale to sovereign wealth fund
--$400M sale to members of the partnership of BABA including Jack Ma itself.
So I see this deal as primarily transfer of ownership from Softbank to various entities.
This is just transfer of ownership and money worth about $8B between BABA and Softbank with various of other players involved.
Or another possible scenario is that Softbank will buy back YHOO 35% stakes in YJ, considered about $8B valuation, thus putting Softbank majority control of YJ. I don't think YHOO will take more BABA shares in exchange of their stakes in YJ my opinion.
This is a noise but the impact to YHOO is really nothing, but just noise period. This is simply a specific transaction between BABA and Softbank, plain and simple reduced percentage ownership of Softbank of their stakes in BABA and to various ownership to PE's, to some members of the higher management of BABA and probably some Hedge Fund groups and other groups.
This is a good push for YHOO to go over $40's range. With looming decision this week or next week of the bidder selected and BABA joining the MSCI, this will the give the strong push upside and shares up momentum for YHOO shares.
Gilbert and Buffett team will definitely the X factor in the bidding. But my take is that TFG and partner gave the highest bid so far.
It is silly concept because it is very hard for BABA, highly leveraged, to produce $55B to buyout YHOO. Plus here is a big reason it will never pass the Anti-Trust agency approval. As you know YHOO has over 1B online users and that cannot provided to BABA being a communist Chinese company.
I have no doubt T is thinking about this strategy whether just go for the Core or whole YHOO. Whole YHOO then it would be a takeover deal likely using more T stocks say even up to 90% my opinion.
T could take whole YHOO instead of just the core. They know the growth potential of BABA. Onetime YHOO's 15% stakes in BABA was $44 - $46 per YHOO share. So if they can get YHOO at $50 per share, then they get YHOO core and YJ at $0. YHOO got $5B cash in the bank.
But with T is in seriously, we have bidding or takeover bid brewing.