Yahoo's stake in Alibaba could be worth $37BN, Yahoo's market value is $40BN
Yahoo's stake in Alibaba could be worth $37BN, Yahoo's market value is $40BN. This article by Tara Lachapelle for Bloomberg may be of interest to subscribers. Here is a section: Last month, the average valuation forecast for Alibaba was $153 billion, based on 10 analysts' estimates compiled by Bloomberg News. That implies almost $37 billion for Yahoo's stake in the Hangzhou, China-based company. Yahoo's own market value is about $40 billion. Even if Alibaba commanded just $100 billion, Yahoo could sell a 10 percent position and still receive more than $6 billion in cash after taxes, according to Ronald Josey, a New York-based analyst at JMP Securities, a unit of JMP Group. That would leave Yahoo with at least $11 billion of cash. Alibaba is the spark, Josey said in a phone interview.
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