Yahoo Update: Analyzing The Alibaba Deal And The Way Forward
By Helix Investment Management:If there was one public company that defines the word soap opera, Yahoo! (YHOO) would be that company. From its revolving door management to the constant leaks from the company, Yahoo! has had more than its fair share of drama. But are things finally getting better at Yahoo!?
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The Deal
On May 20, Yahoo! finally announced what many of its investors have been waiting for: the monetization of its stake in Alibaba (ALBCF.PK). The two companies announced that Alibaba will be buying back half of Yahoo!'s stake in the company, at a minimum valuation of $7.1 billion. The exact valuation will be determined based on the valuation Alibaba receives when it completes the equity financing needed to buy back Yahoo!'s stake (subject to a minimum valuation of $35 billion).The announced deal also has several incentives designed to drive Alibaba towards an IPO, such as the terminationComplete Story »
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