Adds up to $55-60 in buyout and MM tech executive of the year
Alibaba seen offering 22% IPO discount (analysts value at $154 bln in IPO vs. post-listing valuation of $198 bln). Story to come.
Yahoo requested and Alibaba Group agreed to an amendment to the share repurchase agreement that reduces the maximum number of shares that Yahoo is required to sell in connection with Alibaba’s initial public offering from 208 million shares to 140 million shares.
Dividends indicate a stable, projected on going income stream in which mgt has enough confidence to return a portion of earnings to shareholders. If YHOO is going to earn 1.62 and 2.25 next year, a dividend of about .16-.20 a quarter is sustainable, or a yield around 2.5% would cost less than $1 billion per year. Along with a stock buyback, this would propel Yahoo toward $50.
too low a price for the shares which YHOO is forced to sell as part of deal - why should YHOO sell
at $130 bill valuation if aftermarket could value at $200 billion or 50% more - unless there are
very attractive tax provisions for the sold shares???
A Japanese scientist working in the United States said Wednesday he has engineered a virulent new strain of the swine flu virus that could spread unchecked because it defeats the human immune system.
The research, on the 2009 H1N1 virus at a high-security lab at the University of Wisconsin, Madison, has not yet been published. It was first reported on Tuesday by a British newspaper.
The article dubbed virologist Yoshihiro Kawaoka “controversial,” adding that “some scientists who are aware of (the work) are horrified.”
Last quarter, YHOO announced live stream of earnings report for April 15 on April 1.
NOW, here we are waiting July 15 earnings, with no press release just 5 days before the report date.
INFERENCE: There could be some kind of surprise, associated with the Baba IPO, quiet period, etc
which is causing delay in even the announcement of date/method of YHOO 2Q report.
Alibaba Group Appoints Jim Wilkinson as Senior Vice President, Head of International Corporate Affairs
Hangzhou, China, May 12, 2014 – Alibaba Group today announced the appointment of Jim Wilkinson as Senior Vice President, Head of International Corporate Affairs. Wilkinson will be based in the San Francisco Bay Area and will be charged with building and leading Alibaba Group’s international corporate affairs team.
Wilkinson brings to Alibaba Group extensive communications and corporate relations experience among the international, consumer and financial communities. Wilkinson also has strong government and regulatory affairs experience in key global markets worldwide.
“As Alibaba extends our platform for entrepreneurs and small businesses around the world, it is important that we have the right people in place who have a track record of building bridges across geographic boundaries,” said Jack Ma, co-founder and executive chairman of Alibaba Group. “Jim’s leadership, global experience and successful track record will help Alibaba bring the message of our mission to markets outside China: to make it easy to do business anywhere.”
“Jim is a proven team builder and leader in global corporate affairs with a strong track record of integrity, passion and commitment that reflect the Alibaba values,” said Joe Tsai, executive vice chairman of Alibaba Group. “I look forward to working closely with Jim as we enter the next exciting phase of the company’s development.”
Prior to his appointment at Alibaba, Wilkinson was Executive Vice President of Communications for PepsiCo, a global food and beverage leader with net revenues of more than US$65 billion. At PepsiCo Wilkinson managed a strong and successful communications team with presence in key growth markets worldwide, including in China and across Asia.
Yahoo PT of $43 is based on sum of parts valuation with Alibaba at about $150 bill initially giving Yhoo $28 bill stake during IPO but after IPO Yhoo will have up to $10 bill cash plus remaining stake in either market demand driven Alibaba $210 bill stock valuation, or growth driven similar 210-225 bill valuation 2015-2016. So Yhoo will have SOP value 10b cash plus 20b Baba share plus Japan plus US core Value total 45-50
Xunlei Limited (XNET), one of the largest internet companies in China, priced its IPO last night-one day early (it was expected to price tonight). The company priced 7.3 million shares at $12, well above the price talk of $9-$11, on the NASDAQ. Xunlei claims it has over 300 million unique visitors each month visit its cite to access music, video and games.
yup, with Ebola out of control and MERS-Cov spreading internationally, rapid development of broad spectrum antiviral is a priority MCM need. Plus it goes by a different accelerated path
ABBV just made a bid for Shire, and Biocryst has a better HAE drug than Shire, besides peramivir and other small molecules. Shire up $37 or 16%. BCRX easily a target for $20-25 bucks
ABBV could undercut Shire and buy BCRX whose oral HAE drug will take market share from Shire's infusion therapy. BCRX could be gotten for a couple billion, and have an HAE and antiviral pipeline
Yahoo can take a big step if it offers and alternative to Youtube, which under Google may require indie music bands and sources to opt into their streaming music system. If Yatube is the alternative, it may get a lot of movement from the young kids who want to be free.
price of about $40 before ALIPO is about $16 + 40 = $56. which is After Tax valuation of cashout scenario of ALIPO stake + core business. No sale of YHOO below $55 buyout