On the Value of Yahoo!

Yahoo’s CEO Marissa Mayer said last October that she would communicate back to shareholders by the next earnings release on Jan. 27 with the company’s plans for the rest of its Alibaba holding.  Here’s a story that describes the current situation.

 

Also, below is a very simple analysis of Yahoo.

Start with the value of the company today, which is its price per share multiplied by the number of shares outstanding.

Do the same thing for Yahoo Japan and Alibaba, since both are separate companies in which Yahoo holds a significant ownership stake.

Then calculate the value of the shares that Yahoo holds in Yahoo Japan and Alibaba.

A couple of notes:
1. In its Q3 2014 SEC filing, Yahoo disclosed the number of shares that it holds in Alibaba.  However, I couldn’t tell the exact number of shares that it holds in Yahoo Japan.
2. According to the Q3 2014 10Q, Yahoo also has about $10 billion of Cash on its balance sheet.

Here’s another article that describes how Alibaba could by Yahoo for free.

 

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