Yahoo news: What will it do with its Alibaba haul? Plus what’s up with Jerry Yang

We’ve got your Yahoo news roundup right here. First, what will Yahoo do with all that cash from selling some of its stake in Alibaba? All that cash, by the way, is about $9.4 billion.

In a filing Tuesday, that’s how much Yahoo said it hauled in after it sold 140 million shares in Alibaba’s U.S. IPO, leaving it with about a 15 percent stake in the Chinese e-commerce giant.

But as Forbes’ Palmy Orson points out, Yahoo’s stake could have been worth $35 billion more if the company’s board hadn’t sold more than half its stake back to Alibaba a couple of years ago. Yahoo sold the shares for $13 each; Alibaba’s current share price is $86.51.

Still, Yahoo’s part ownership of Alibaba is a big part of what has kept the Silicon Valley company afloat on Wall Street these past several years, and the Forbes piece profiles the man responsible: Yahoo co-founder and former CEO Jerry Yang. Years ago, before he became CEO and then ex-CEO of Yahoo, he orchestrated the deal that bought the company more than a 30 percent stake in Alibaba. Forbes notes that while Yahoo retains a stake in Alibaba post-IPO, it won’t have a seat on the board — but Yang does. Those who are interested in tech’s back-room dealings will find the Forbes piece fascinating.

Meanwhile, what will Yahoo do with all that cash? Starboard Value, an investor in Yahoo, last week pushed for the company to buy AOL. This week, an investment advisory firm suggested a tie-up with Japan’s Softbank.

“We think that Yahoo would be far better off under the stewardship and vision of Mr. Son than under Yahoo’s current top management,” Albert Saporta, managing director of Geneva-based Alternative Investment Management & Research, said in a letter to Softbank Chairman Masayoshi Son, and Mayer, according to Bloomberg.

Yahoo shares are down about 0.8 percent to $40.40; their 52-week high is $44.01.

 

Photo from Associated Press archives

 

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