Which is what I said. I responded to the "package" comment and then said only the core assets will be sold.
If the entire company plus investments were sold, I would expect a 30% premium to whatever price it's trading at on the day of the offer. This is why we need BABA to get back into the 80s or higher prior to the offer. We'd need YHOO at 31 to get an offer of 40. All things considered, I doubt any company is interested in all of YHOO. It'll likely just be the core assets and I'd expect a company to pay roughly $10/share because of the cash they'll be getting.
Nice, you can see into the future. Who will win the Super Bowl? I need to know so I can bet on the winner and make my money back. You want the stock price to continue lower for the next 2+ years? That's odd.
With oil prices this low and no hope for a significant increase, the only real option to increase shareholder value is sadly to sell the business. COP cannot make money in this environment.
No one makes money by selling low. It was questionable whether or not the company was for sale prior to earnings. Now it's clear it is for sale. The downside from here is only from BABA's stock price losing value. I'm either buying more Thursday or Friday.
It is conceivable that potential buyers have told Yahoo they need to cut payroll prior to any formal bids. Then the buyer doesn't have to look like the bad guy by firing a bunch of people after the buyout.
I didn't say anything about BABA being a bad company. My post was in regards to the street's view of China right now. I'm not sure where your disagreement is.
Highly doubtful. Even if BABA posts great earnings, the street won't care because that was Q4. According to the street, China was doing fine in Q4 but is in a depression now. No matter what those earnings say, BABA will sell off big time. I'll be buying on the 8% down day tomorrow.
If there was an offer, they certainly didn't bother to tell shareholders about it which tells me it did include the cash and it was so ridiculous that management didn't even feel the need to announce it. They'd have to mention an $8B offer for core without cash because that is actually a good offer and they'd risk lawsuits if they didn't release it.
The report stated the bid was for the "core assets". This means the $5B in cash was included. Do you feel like the search and ad business is worth only $3-4B?
If it was $8B for Yahoo's core assets, then they value the internet and display business at about $4B because Verizon would get the net cash on the books.
Did anyone else find this quote disturbing?
"Yahoo wants to gauge shareholder reaction after presenting its strategic vision during the earnings conference call."
It seems like management knows what they'll be presenting is garbage, and when the stock tanks as they know it will, they will then start reviewing bids to sell either just core or the whole thing.
Of course core will get less than $30/share. The street values it at $0 or a negative amount right now.
Seriously, I have no idea what to think of this. Let's just say it's sold for $4B, then what? We have an extra $4B in cash on the books and we own BABA and Yahoo Japan? Who manages it? How are we rewarded? Someone explain.