Jeezus, can't anybody in America write anymore? Maxx, did you graduate from the third grade?
There should be no comma after the word "integrity" in your first sentence. The word "whichever" is and always has been one word, not two. Finally, if you're going to talk about something being "third rate" -- other than your writing ability -- you might try to recall that it's a hyphenated phrase.
I don't often pull the grammar card, but, honest to goodness, if you want your thoughts to be respected, then at least try to make it seem as if you are an educated person.
Tim, I have to disagree. I don't think the current deflated price of YHOO shares is due to uncertainty as to the amount of the discounted price that Alibaba would pay for Spinco. I think it's due to the market's uncertainty as to whether Alibaba will buy Spinco at all.
I don't think that eventuality is a certainty or even close to a certainty. It's a possibility. It makes sense from certain perspectives. But it's purely speculative. If it was more than that, the current price of YHOO stock would be much much higher, given the huge amount of the tax avoidance -- even if Alibaba paid a discounted price.
But in no way is the purchase itself a certainty. I wish it was. I'm holding a ton of YHOO stock and, although I'm hopeful that it will pay off handsomely at some point in time, I'll continue to be nervous until it actually does become certain that Spinco actually will be able to avoid taxes on the sale of BABA shares.
I agree 100%. The alternative is to believe that: (1) Yahoo core has either a zero or negative value, which makes no sense in light of the historical earnings of this company; and (2) Investors believe that, when Spinco sells its BABA shares, it won't have to pay any taxes -- which also makes no sense unless and until someone explains to the world how those taxes are to be avoided (for instance, a BABA repurchase of its own stock).
Clearly, the price of YHOO continues to be based on a full tax deduction for BABA (and also, I believe, for Y-Japan).
I don't see why such a rumor would cause YHOO shares to drop in price anyway, since the stock was already valued as if the BABA and Y-Japan stakes would be sold and fully taxed. Makes no sense whatsoever.
Doesn't it have to be that investors are seeing the Y-Japan talk as an indication that we're going to have an Alibaba/Y-Japan Spinco and a core that is going to be sold this year?
Tis from the 8-K:
"Yahoo is entitled to receive a percentage of the revenue (the "Revenue Share Rate") generated from Microsoft's services on Yahoo Properties and on Affiliate sites after deduction of the Affiliate sites' share of revenue and certain Microsoft costs. Under the Search Agreement the Revenue Share Rate was 88% for the first five years and then increased to 90% on February 23, 2015. Pursuant to the Amendment, the Revenue Share Rate will be 93%, but will now apply before deduction of the Affiliate sites' share of revenue."
So. . . a 5% increase over prior years, plus affiliate share-of-revenue will no longer be first deducted before computing the 93%.
Wonder how much that projects to in additional YHOO revenues.
Just one time, Louie, I would love it if you would explain what technicals you're talking about. I would lo e for us to bust out, but so far you've been -- how shall I put it -- full of #$%$.