if the loss of Alibaba and YAHOO shares in Japan, YAHOO’s main business today, the market value is negative
YAHOO recently faced a choice: to abandon their own portal started business, keep the stock in the Alibaba through the day, or the shares of Alibaba stripped out, to continue efforts to revive the hands of the business, a reversal of Jobs.
there is no doubt that the current YAHOO CEO Meijer will choose the latter. But YAHOO’s largest shareholder, style fund hedge fund Starboard Value want to sell YAHOO’s own business.
In an open letter sent to YAHOO last Wednesday, Starboard suggested that YAHOO keep the shares of and YAHOO in the hands of the company, and then sell the core business, such as online advertising, that has been struggling.
Starboard considerations entirely from revenue. A while ago, YAHOO made an application to the IRS, would like to know in advance if they hold the Ali shares split out, the company’s shareholders in the end whether to pay billions of dollars in taxes. But the IRS says it can’t be said spoilers ahead, only after the transaction occurred.
compared to sell stocks may bring high taxes, sell YAHOO’s core business actually do not have to pay much tax, because this part of the value is not high.
this is the reality of the dilemma faced by YAHOO: if there is no Alibaba, the 20 year history of the value of the Internet Co itself is negative.
stripped Ali shares, how much impact on YAHOO
YAHOO, the old Internet Co business model, is to sell advertising – whether it is the first classified information on the portal, or the current video, native and social networking sites advertising. In the absence of search engines and social networking era, YAHOO as a portal is the first entrance to the Internet in many places.
‘s share price hit a record high of $475 before the dotcom bubble burst in 2001.
but Google and Facebook and other new advertising channels quickly replaced the portal, YAHOO’s advertising costs are getting higher and higher. In order to reverse this situation, YAHOO has replaced the digital CEO (including back company founder Yang Zhiyuan) to think of ways, but the company’s situation is getting worse.
is one of the biggest, is YAHOO in 2005 for $1 billion and a downturn in the Yahoo China business, in exchange for 40% shares of the Alibaba.
currently, YAHOO also holds 15% stake in Alibaba. According to the market value of Alibaba estimates, this part of the value of nearly $29 billion 300 million.
in addition, YAHOO hand still has 35.5% of the shares of Yahoo Japan Co. Although >