That'll solve your problems. A $60K/year position is somehow worth millions to Mayer and Yahoo. This is a joke. Why is she still the CEO? Can anyone give a thoughtful serious answer?
It's not like selling a bungalow in Baton Rouge. This property was over $100M in 2006.
It's not even on Twitter yet. Amazing! Everyone getting ready for the boring NFL draft?
There was no cash payout from what I remember. BABA secretly spunoff Alipay without Yahoo's or Softbank's knowledge. Yahoo and Softbank were forced to accept the profit sharing agreement BABA struck with Alipay. The only other option would have been to go to sue which would have cost millions in legal fees.
Yahoo gets a complimentary tube of KY. If BABA hadn't splitoff Ant, BABA's market cap could be $60B higher than it is today which in theory would have added $9B to YHOO's market cap. Thank Jack Ma for bending Yahoo and Softbank over a barrel.
Maybe standard wasn't the right term, but value investors often buy holding companies when the discounted price is more than 15% from the NAV. Again, it's just my personal opinion that a holding company of BABA shares would trade in this range.
I personally think the stock wouldn't trade at a 40% discount. I think investors would assume BABA would be the only logical buying of the holding company. Thus, it would trade at a discount closer to 15% which is standard.
Wouldn't that be a fitting end to the story? Jack Ma screws Yahoo shareholders out of billions by separating Ant Financial from Alibaba, then later swoops up Yahoo for nothing. Screw Ma! I'd rather see core go to the highest bidder, Yahoo Japan go to softbank, and YHOO simply becomes a holding company of BABA shares.
Those are non-GAAP numbers. Yahoo likes to confuse GAAP and non-GAAP, especially when it comes to Chinese companies.
What about this: if only the BABA shares are left after the sale, YHOO could decide to simply hold the shares and say the company is not for sale unless BABA is the buyer. Without the tax built in, YHOO would still likely trade at about a 15% discount to BABA, valuing it at $27/share. Add this to your $20B figure for the rest, then we're looking at $48/share.
That doesn't mean the companies who didn't make the cut are done for good. It's just Yahoo's way of telling them their bid was significantly less than other bids. Those companies could still offer more and get back in the auction process.
Forgot to mention Softbank has been in talks with VZ about buying Yahoo Japan from them if they buy it. Not sure why they would wait for VZ to buy the Japan shares as opposed to buying them directly from Yahoo. Someone much smarter than me might know.
It could take a month to pick a winner. Cheers!
First, the tax treatment would depend on how YHOO classifies the dividend. If its ROC, those of us with shares in a Roth would high five each other because an ROC dividend only lowers our cost basis which means nothing to us. Anyone outside a Roth would pay 15% capital gains if held within a year, but only when they sell. Second, the announcement of a special dividend would send the stock higher prior to it being decreased by the divy amount. Thus, any tax you pay would be more than offset by stock price appreciation.