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Breakingviews: The why in Yahoo

Wednesday, Apr 16, 2014 - 02:38

April 16 - As Chinese internet giant Alibaba, about a quarter of which is owned by Yahoo, prepares to go public, Breakingviews columnists wonder if the U.S. company's earnings will much matter anymore.

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Bristol-Myers got a great lengths to make Yahoo! hip began -- just had results yesterday -- novel that inspired. But the question is a matter anymore probably got. Yeah there's actually disputed -- of business just detail on the dog and that there -- overseas investments. If you look at Alibaba which had phenomenal results yesterday that -- their quarterback. They -- their earnings that just incredible pace or operating margins keep on increasing to 50% and they're still rising. Yahoo! has a stake of about 24%. It's equivalent to. Probably about 60% of the company and Alibaba were expecting to. -- file to go public any day now I -- I mean this is a village seeing family unit. Colleagues and a's who have cinema -- -- -- take -- -- -- -- Butler and I -- a second connection to a hundred billion dollars clinic -- public invited light switch may now be lights of this league and a couple of analysts reports just now out of -- -- having seen the Q4 Alibaba numbers say well they really 15060. Billion. And you know that that number -- was just mentioning it 60% of Yahoo!'s market -- being in the Alibaba stake would be. Considerably higher if it's economic as we would that we were using 130 billion and they have a sale of other stakes global water is all about going public change the calculus perhaps on the the relevance of the young. Well what happens though there's now there's no way to invest in Alibaba except if you -- -- killing Yahoo! -- essentially own. Alibaba but it's it's that kind of a back door deluded way of doing it you know if you've got the chance on this pure play units of the company itself. Why would you bother owning a company that Yahoo! especially because they're selling down their stake in the IPO that nestled down about ten percentage points mistake I cut in half. That means that he has got a lot of cash in the books are probably Indies meet some silly acquisitions and assets in why would you rather have that and if you. And it's so that's a bad thing accompaniment I think to be fed and assigns in this -- -- that. Yahoo!'s businesses turning around a little bits that in a -- of them sort of flat down it's sort of flat teach -- Which is and it certainly improve right right but you know if you factor out the values of indices stakes which is -- -- -- much small piece of Yahoo! Japan. The mostly valued piece of yardage. Then. Wind Siri what's left VOA's businesses maybe six billion dollars and -- of that Data Co. went without that these other states it's not that big event. Business to -- Where are we may have a better idea about this next week will keep an -- -- and we'll be back with more breaking -- tomorrow.

Breakingviews: The why in Yahoo

Wednesday, Apr 16, 2014 - 02:38

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