Breakingviews

Yahoo’s Alibaba spinoff attracts big discount

February 12, 2015

The company’s plan to distribute its stake in the Chinese company hasn’t excited investors. A Breakingviews calculator suggests they are attaching a 34 pct discount to the U.S. tech firm’s Alibaba shares – assuming Yahoo’s core business is worth something. That’s too cautious.

Yahoo’s Mayer nears post-Alibaba reckoning

July 31, 2014

A stake in the Chinese e-commerce group makes up over half the U.S. internet firm’s value, a Breakingviews calculator shows. When investors can buy Alibaba shares directly - potentially next month - Yahoo chief Marissa Mayer will find herself under a narrower, brighter spotlight.

Yahoo’s Alibaba windfall tough to spend wisely

May 8, 2014

After selling part of its stake in the Chinese company’s mega-IPO, Yahoo could have $12 bln in cash. Buybacks have been getting pricier, and with Alibaba stock traded separately the U.S. firm may be tempted to throw money at its own business – whatever that may actually be.

Microsoft ought to kick off search for Bing buyer

July 22, 2011

Microsoft needs to concentrate on a different kind of search: finding a buyer for Bing, its online search business. The division that houses Bing lost $2.6 billion in the latest fiscal year. Facebook, or even Apple, might make a better home for Bing. And a sale would be a boon for Microsoft's investors.

Forget the IPO, Facebook could reverse into Yahoo

September 12, 2011

Now that Yahoo has fired its chief executive, anything could happen to the rudderless Internet hodgepodge.

Yahoo’s gain is eBay holders’ pain

January 4, 2012

The Internet company has nabbed the head of eBay’s PayPal as its new CEO. That’s good for Yahoo, but less so for eBay’s shareholders. The auctioneer’s payments business is a gem that could grow faster on its own. Thompson’s walk suggests such a split isn’t coming any time soon.

Yang’s goodbye finally frees Yahoo

January 18, 2012

The Internet firm’s co-founder has quit its board and those of valuable Asian properties. That gives Scott Thompson, the new CEO, fresh flexibility. Yang once got in the way of a high-priced sale to Microsoft; disposal or dismemberment of Yahoo is now that much more likely.

Complexity caps allure of Yahoo’s Alibaba solution

February 13, 2012

A mostly cash split-off promises a tax-efficient way for the troubled U.S. Internet firm to cut its stake in a Chinese rival. Yahoo also would accept a group of assets as part of the deal being discussed. But the more elaborate it gets, the more diluted the benefits may be for Yahoo.

Alibaba and Yahoo could live unhappily ever after

February 15, 2012

Talks on Alibaba buying back Yahoo’s stake in the Chinese tech giant may have hit an impasse. The deal’s valuation, structure and its financing are key roadblocks. This adds more strain to their relationship. They may want to rebuild trust before going back to the table.

Yahoo activist hasn’t yet earned four board seats

February 28, 2012

Dan Loeb’s Third Point hedge fund correctly diagnosed the board as the problem. But investors should demand he provide a sound prescription to cure ailing Yahoo before voting for his full slate of directors. Until then, Loeb merits just one spot - to keep the pressure on.