Alibaba To Buy $7 Billion Stake From Yahoo!
Rumors once again that Alibaba, the China e-commerce firm, will buy a $7 billion stake of its own equity from Yahoo! (NASDAQ: YHOO) This would be about half of Yahho!’s stake The most recent rumor is from Bloomberg. Some speculate…
The most recent rumor is from Bloomberg.
Some speculate that the cash on the portal company’s balance sheet will make it a more attractive buy out target
However, the cash could be used in other ways. One would be to buy bad shares. The amount would allow Yahoo! To buy a third of its stock based on its current market cap. It could also offer a very large one time dividend as Microsoft (NASDAQ: MSFT) did over a decade ago. Interesting enough a $1 billion plus sale and license of patents will allow Aol (NYSE: AOL) to do the same thing
Yahoo! Could also move onto to M&A trail. New interim CEO Ross Levinsohn is a known deal maker. But a number of analysts believe Yahoo! Should fix its own problems first
Douglas A McIntyre
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Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.
McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.
His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.
A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.
TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.
McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.