Friday , 20 July 2018
Breaking News
Report: Yahoo to keep Alibaba, examine core asset sale

Report: Yahoo to keep Alibaba, examine core asset sale

Yahoo’s board has reportedly decided to not move forward with spinning off its stake of Alibaba and is instead looking to part ways with its core business. The move has resulted in a more than 2 percent jump in the price of the company’s shares in after-hours trading.

According to CNBC, Yahoo will look to possibly part with its core business, something observers and pundits believe does not have any real value when you look at what’s left after parting ways with Alibaba and other equity interests.

Much has been said about the company over the past few weeks leading up to this meeting, including whether Chief Executive Marissa Mayer would wind up keeping her job. But perhaps the biggest elephant in the room was what would the board decide to do about its 15 percent holdings in Alibaba, estimated to be worth around $32 billion.

The decision to move forward with parting ways with Alibaba came about with some questions left unanswered, specifically the fact that the Internal Revenue Service (IRS) didn’t rule about whether Yahoo could face a tax issue when putting its stake in Aabaco, the new name of the spinoff company filled with Alibaba and Yahoo Small Business.

Yahoo had been pressured in the past by activist investors from Starboard to spin off Alibaba, saying that it would be a “good first step,” but months later, recanted and demanded that Alibaba remain a part of Yahoo. As a result, the firm sought to push Yahoo to sell its core business.

It looks like Starboard has convinced the board to follow through on its plan. Speculation of who would be a possible suitor for Yahoo’s business have started recently, with Verizon’s Chief Financial Officer Fran Shammo saying this weekend that his company “could be tempted to buy Yahoo.”

Yahoo! is the premier digital media company. Founded in 1994 by Stanford PhD candidates David Filo and Jerry Yang as a way for them to keep track of their personal interests on the Internet, Yahoo! has grown into a company that helps p… read more »

Powered by VBProfiles

Article Source

Share and Enjoy

Leave a Reply

Your email address will not be published. Required fields are marked *

*

Email
Print