![]() Subtract the expected taxes that selling the Asian companies would generate, and what remains is worth perhaps $13 billion.Īnd what remains, analysts say, is challenged. ![]() Yahoo’s market value was about $39 billion as of the close of the market on Thursday. The second-most valuable one is the company’s 35 percent stake in its Japanese affiliate, Yahoo Japan, which Still, the remaining Alibaba stake is by far the single most valuable asset that Ms. Once the public was able to buy Alibaba shares directly, however, the need for Yahoo as a proxy disappeared. Before Alibaba went public, the only way most shareholders could obtain any sort of financial exposure to Alibaba was to invest The question of Yahoo’s fate will become only more acute over the next year or so. Sarah Meron, a spokeswoman for Yahoo, declined to comment on the company’s acquisition strategy or its long-term plans for its remaining Alibaba stock, which it has promised to hold for at least a year. Now restive shareholders are clamoring to receive the bulk of the cash from the Alibaba stake sale, potentially limiting Ms. Yahoo could use the proceeds from the Alibaba share sale to go on an acquisition spree to help reinvent itself and regain relevance.īut many investors and analysts have been underwhelmed by previous takeover efforts, including the $1.1 billion purchase of the blog network Tumblr, Yet Yahoo’s shares have tumbled more than 8 percent since then, highlighting the peculiarly difficultĬrossroad that now confronts Yahoo and its chief executive, Marissa Mayer. The company sold Alibaba shares worth $6 billion after taxes, and its remaining stake is valued at $36 billion. Public market debut last week of Alibaba, the Chinese e-commerce giant. No cash balance or cash flow is included in the calculation.Yahoo, more than any other investor, should have benefited from Please note all regulatory considerations regarding the presentation of fees must be taken into account. ![]() Backtested results are adjusted to reflect the reinvestment of dividends and other income and, except where otherwise indicated, are presented gross-of fees and do not include the effect of backtested transaction costs, management fees, performance fees or expenses, if applicable. Actual performance may differ significantly from backtested performance. Further, backtesting allows the security selection methodology to be adjusted until past returns are maximized. Since trades have not actually been executed, results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity, and may not reflect the impact that certain economic or market factors may have had on the decision-making process. Specifically, backtested results do not reflect actual trading or the effect of material economic and market factors on the decision-making process. Backtested performance is developed with the benefit of hindsight and has inherent limitations. This information is provided for illustrative purposes only. No representations and warranties are made as to the reasonableness of the assumptions. Certain assumptions have been made for modeling purposes and are unlikely to be realized. Changes in these assumptions may have a material impact on the backtested returns presented. ![]() General assumptions include: XYZ firm would have been able to purchase the securities recommended by the model and the markets were sufficiently liquid to permit all trading. Backtested results are calculated by the retroactive application of a model constructed on the basis of historical data and based on assumptions integral to the model which may or may not be testable and are subject to losses. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. Backtested performance is not an indicator of future actual results. Disclaimer: The TipRanks Smart Score performance is based on backtested results.
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