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Breakingviews: Yahoo's $20 bln conundrum

Thursday, July 31, 2014 - 03:12

Breakingviews columnists discuss how CEO Marissa Mayer will deal with the windfall, and fallout, of the impending IPO of Alibaba.

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Yahoo! -- Marissa Mayer is gonna have a much brought -- spotlight shining on -- possibly as early as this month. Alibaba is like -- public and the Internet giant in China. Probably makes up -- half which you -- this more than half of Yahoo!'s market capitalization -- -- does not mean that. The Marisa monitor writes in his company around you don't lose money. He kept about 36 billion Rollins that sounds like a big company massive twenty. Is probably accounted for by its stake in it Bubba that's even off the assuming a terrorist attacks yet -- I US you're assuming that that this is that the latest -- valujet. And thirty billion dollars the Volvo order is that is there an unpublished until valuations and I believe -- They would it would be even more of that and rights attorney billion of that is. Ali -- now. Once they've always probably we have that two things happened one that you actually get the daily market value for that -- -- the road saying well that's the latest and tell you say this is about the price today so that makes it clear. And secondly invested they need to and Yahoo! in order to have a proxy for -- elbow which is which is one of the things the other stuff -- -- In recent years now you know also has a stake in Yahoo! Japan. That's actually worth about another six billion dollars of something's got to say -- 67 bonds over the diamond business is the ones Marissa Mayer has -- running -- about six billion dollars for. A much smaller companies and once you that number for a bubbly and perseverance focus much more merit of what value we contribute to those businesses and it's a performance justifying that cut him a -- What are we seeing some younger -- my message is it just -- she is somebody justify its old it's. You boring business she's learning you know it's very small I suspect it's actually worth less than that if you Americas in Alibaba could be worth more -- in Georgia and that are. And that's including tax clients and I'll put it. The problem is that this that this is they had just isn't growing very well it is an -- it's shrinking actually yeah. And you know she tries to doing acquisitions and you know the -- position. -- excitement the problem is they have and soaking it all back from a trip to -- some wanted to I think -- get enough of him and not social media platform some description it's not -- you know something but it has -- revenue. Yet while it does we know we -- amateur and has yet. And the other thing is that there's search business is still there are locked in a partnership with Microsoft they can't escape that Bryant so essentially she doesn't have. Any controller that parental control. When -- -- has raised the other question about it Bubba did which is yet we will get some money is it selling some says. And how carefully and wisely spends that money isn't -- talked about mistrust talked about giving at least half the back channels and not much at least. That still leaves another billion Nazi's -- -- have. Play around. Right and acquisitions may be the best way to get growth yet settled isn't -- going to be quite like they FaceBook zionists are happy to let most of the -- -- funds -- Processor that she recently that they'll be a global skeptical about what -- estimate doesn't. Rob richer thanks very much a movie. Back with more breaking decent.

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Breakingviews: Yahoo's $20 bln conundrum

Thursday, July 31, 2014 - 03:12

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