Wow, alibaba is actually a legit company? Every time it comes up in a google search, I take a few glances at it, and it just <i>screams</i> "spam, landing page" at me.<p>Odd.<p>Has anybody here actually bought anything from them?
So let me get this straight. Yahoo! is getting rid of the only successful asset it has left?<p>Until right now, Yahoo! had two things going for it: its asian operations (Alibaba, Yahoo! Japan, etc.), and the Hadoop project. Now, it only has one.
Yahoo! must be getting desperate. While it was probably the best thing to do, Alibaba is quite profitable is it not? It's worth something like $35B, crazy.
> The deal, announced late Sunday in the U.S., will see Alibaba Group buying back the stake from Yahoo Inc.for $6.3 billion in cash and up to $800 million of Alibaba preference shares.<p>I'm sure there's a sensible rational for it, but it sounds hilarious for them to be selling their stock in exchange for a bit of cash and some more stock.
Yahoo should take the money and go private. Yahoo has a market cap of 19 billion so they should be able to easily borrow the money.<p>They need to make some big changes to remain viable and imho the only way they're going to be able to do it is out of the glare of the public spotlight.
I dont understand if Alibaba is planning on buying Yahoo why not just buy them outright now and not worry about buying the stock back? If Alibaba bought Yahoo would it not also not then own the Alibaba stock yahoo was holding?
So Yahoo without Alibaba is worth about $4.6 billion (18.8-14.2), subtract the $2.1 billion cash and short term investments and you get a price tag of $2.5 billion for all of Yahoo's other operations and assets.