Greenwood Trading – US internet giant, Yahoo will pay half of the proceeds from the sale of part of its stake in Alibaba Holdings back to shareholders.
Greenwood Trading has reported that Yahoo stockholders are set for a cash boost as their company announced it is to pay at least half the cash it nets from the sale of part of its stake in Chinese internet giant, Alibaba, when it goes public this year.
Yahoo owns nearly 24% of Alibaba, a which it acquired in 2005 for $1 billion making its current holding a particularly shrewd investment for the troubled company led by former high-ranking Google executive, Marissa Mayer.
“Alibaba’s IPO is probably going to be the largest technology IPO in world history and, as such, is set to be particularly attractive for Yahoo which is still facing criticism from both observers and its own shareholders of what is still a less than clear business model,” said Paul Iurio, a Greenwood Trading technology researcher.
“Their online advertising business is largely stagnant they’ve been heading in the opposite direction to the likes of Google and Facebook both of whom have posted blowout earnings and revenue growth in recent quarters,” he added.
The stake in Alibaba is seen as one of the few positive aspect of owning Yahoo stock and Greenwood Trading says it no longer sees any particular reason to acquire stock in the company to gain exposure to Alibaba as it might have done in the run up to the Alibaba IPO filing.
Greenwood Trading says that Yahoo’s holdings in various external entities are worth to more to its shareholders than its core business citing the Alibaba holdings and a stake in Yahoo Japan.
About Greenwood Trading:
Clients come to Greenwood Trading to avail themselves of our experience and our broad, comprehensive range of professional investment management services. More importantly, they remain with us because they can rely on us to provide them with the personalized service and the returns on investment their capital deserves.
Greenwood Trading’s philosophy revolves around collaborating with our clients. By leveraging our intimate knowledge of their situations and our investment expertise, we create a platform from which we can achieve their objectives in a time horizon and in a manner commensurate with their current and future needs.
Contact Greenwood Trading:
Tokyo Takarazuka Building, Floor 14,
1-1-3 Yurakucho, Tokyo, Tokyo-to, Japan
Fax: +81 3 6735 7085