Yahoo investment in alibaba
SAN FRANCISCO (AP) — Yahoo is getting another lift from its stake China's Alibaba Group, a thriving Internet company that has helped mask Yahoo's own financial funk. Investors latched on to Yahoo Monday in anticipation of a huge windfall from Alibaba's initial public offering of stock later this year. Yang met Alibaba founder Jack Ma in 1997 on his first trip to China, when Ma was his tour guide sent by the Ministry of Foreign Investment, where Ma was working at the time. It was a fortuitous meeting for Yahoo—Yang later had his company buy 40% of Alibaba for $1 billion and some Asian assets. The shares in Alibaba remain Yahoo’s most lucrative asset, with the company’s stake in Yahoo Japan a distant second. The rest of Yahoo is worth $3 billion to $8 billion, according to analysts Yahoo still has 384 million shares of Alibaba , about a 15% stake. Those shares will be transferred to a new, publicly traded company called SpinCo, and be distributed among Yahoo investors. Here’s how to think about it: Yahoo has a stock market value of $34.1 billion, and owns a 24 percent stake in Alibaba. Estimates for the current value of Alibaba, which is planning an IPO, range between $75 billion and $125 billion. If it comes in at the low end of that range, An investment into Alibaba at the close of its first day of public trading would have increased in value by about 90 percent as of Aug. 6, 2018, according to CNBC calculations. Analysts expressed
Yahoo! originally invested $1 billion for 30 percent of Alibaba in 2005, when Yahoo! CEO Jerry Yang met Alibaba President Jack Ma, as Ma was assigned to accompany Yang on a trip to the Great Wall
Yahoo is a U.S.-based corporation (Sunnyvale, Calif.) and has major holdings in two foreign entities – the 15.37% stake in Alibaba and a 35% stake in Yahoo Japan. Yahoo! originally invested $1 billion for 30 percent of Alibaba in 2005, when Yahoo! CEO Jerry Yang met Alibaba President Jack Ma, as Ma was assigned to accompany Yang on a trip to the Great Wall SAN FRANCISCO (AP) — Yahoo is getting another lift from its stake China's Alibaba Group, a thriving Internet company that has helped mask Yahoo's own financial funk. Investors latched on to Yahoo Monday in anticipation of a huge windfall from Alibaba's initial public offering of stock later this year. Yang met Alibaba founder Jack Ma in 1997 on his first trip to China, when Ma was his tour guide sent by the Ministry of Foreign Investment, where Ma was working at the time. It was a fortuitous meeting for Yahoo—Yang later had his company buy 40% of Alibaba for $1 billion and some Asian assets. The shares in Alibaba remain Yahoo’s most lucrative asset, with the company’s stake in Yahoo Japan a distant second. The rest of Yahoo is worth $3 billion to $8 billion, according to analysts Yahoo still has 384 million shares of Alibaba , about a 15% stake. Those shares will be transferred to a new, publicly traded company called SpinCo, and be distributed among Yahoo investors.
The shares in Alibaba remain Yahoo’s most lucrative asset, with the company’s stake in Yahoo Japan a distant second. The rest of Yahoo is worth $3 billion to $8 billion, according to analysts
The most expensive sake that Alibaba’s Jack Ma ever had. This year marks the tenth anniversary of one of the most lucrative deals in tech history. In 2005, Yahoo co-founder Jerry Yang led Yahoo’s negotiations to buy a 40% stake in Jack Ma’s then fledgling Chinese e-commerce company, Alibaba, for $1 billion. For Yahoo, the Alibaba IPO is a bittersweet event. The company is poised to make a killing on that billion-dollar investment which one analyst described as Yahoo’s “golden ticket.” The shares in Alibaba remain Yahoo’s most lucrative asset, with the company’s stake in Yahoo Japan a distant second. The rest of Yahoo is worth $3 billion to $8 billion, according to analysts’ China’s e-commerce giant Alibaba Group Holding Ltd., which is also treated as an “associate” on Son’s books, is highly profitable and can easily make up for WeWork’s operating losses. Plus the pain of those losses is offset by reduced taxable income. In Son’s upside-down world, control doesn’t necessarily mean control.
Yahoo is a U.S.-based corporation (Sunnyvale, Calif.) and has major holdings in two foreign entities – the 15.37% stake in Alibaba and a 35% stake in Yahoo Japan.
SAN FRANCISCO (AP) — Yahoo is getting another lift from its stake China's Alibaba Group, a thriving Internet company that has helped mask Yahoo's own financial funk. Investors latched on to Yahoo Monday in anticipation of a huge windfall from Alibaba's initial public offering of stock later this year. Yang met Alibaba founder Jack Ma in 1997 on his first trip to China, when Ma was his tour guide sent by the Ministry of Foreign Investment, where Ma was working at the time. It was a fortuitous meeting for Yahoo—Yang later had his company buy 40% of Alibaba for $1 billion and some Asian assets. The shares in Alibaba remain Yahoo’s most lucrative asset, with the company’s stake in Yahoo Japan a distant second. The rest of Yahoo is worth $3 billion to $8 billion, according to analysts Yahoo still has 384 million shares of Alibaba , about a 15% stake. Those shares will be transferred to a new, publicly traded company called SpinCo, and be distributed among Yahoo investors.
The shares in Alibaba remain Yahoo’s most lucrative asset, with the company’s stake in Yahoo Japan a distant second. The rest of Yahoo is worth $3 billion to $8 billion, according to analysts
Alibaba, one of China's largest companies, IPO'd in September 2014 with a record-breaking $25 billion. Jack Ma is Alibaba's co-founder and chairman and is the largest shareholder, with 303.7 million shares. Joseph Tsai, co-founder and vice chairman is the second-largest shareholder with 215.8 million shares.
Yahoo sold half of its 40% stake in Alibaba for $7.6 billion in 2012. Yahoo obtained the entire stake for $1 billion in 2005. Before Yahoo was swallowed up by Verizon, it was a struggling internet company led by CEO Marissa Mayer, trying to bring back its glory days. In 2012, Alibaba purchased about half of those shares back from Yahoo, and then came the infamous IPO. On Sept. 18, 2014, the Alibaba IPO marked the largest U.S. IPO in history, raising $21.8 billion for the company and its investors. What many people don't know is that Yahoo was the largest seller in the IPO,