I don't think any company is going to buy all of YHOO. The companies involved only want the core and possibly Yahoo Japan. It makes no sense for T to buy YHOO for the BABA shares at that low cost basis when they can simply buy BABA shares at the current market price and not have a huge tax bill. For the record, I'm long YHOO & BABA.
My understanding is that T and VZ each only have about $5B in cash. Hopefully that's not enough. This is where the Quicken Loans thing gets interesting with Buffett backing. I have to imagine YHOO wants straight cash homie instead of some mixture of cash and stock. I suppose these companies likely have credit lines to use as cash but I'm too lazy to look into it.
Please just get us back in the 36's tomorrow. Btw, did anyone notice my call on OCN a couple days ago? It's up 37% since then. You're welcome.
The probe started "earlier this year" according to BABA. They just announced it today. I wouldn't be suspicious of the companies trying to buy YHOO's core since the BABA shares mean nothing to them. I am suspicious of BABA possibly trying to push down their own shares so they can buy them back cheap.
Rumble, it depends how the company declares it. If it's an ROC, the rules are different. Just Google "Return on Capital Distribution" and click on the article from investinganswers.
Not so. Yahoo's cash is mainly from the proceeds of the sale of BABA shares. Because this is a sale of an asset not associated with Yahoo's normal course of business, the return of capital to shareholders is tax exempt. With that said, I don't think the board will do it, but with Jeff Smith on there now, who knows.
The sources who are reporting that AT&T made a bid are also saying VZ did not submit one of the highest bids in the first round. This is getting interesting.
I second the notion. Tax exempt for shareholders. All it does it reduce our cost basis. For those of us with shares in an IRA or Roth, that means nothing.
I believe she put $10M of our money into Snapchat when the company was rumored to be valued at $10B. Now they're saying it's valued at closer to $20B. Hey, Mayer might have actually done something right for a change.
Monsanto rejected the bid. Maybe Bayer will look to the much cheaper MOS. Obviously MON & MOS don't produce the same product, but they are in the same industry and if Bayer wants to increase its footprint, MOS is cheap.