Yahoo to sell its most valuable asset

Global Business

Yahoo recently announced it would be spinning off its most valuable asset, a 15 percent stake in Alibaba worth nearly $40 billion. The move was applauded by shareholders but raises questions about what will happen to Yahoo once its biggest prize is no longer a part of its portfolio.

The sell is set for the end of this year and Yahoo’s stake in the company will spin off and become a company called SpinCo. CEO Marissa Mayer said the move will save shareholders $16 billion in taxes. Yahoo investors will be given shares of SpinCo based on the size of their stake in Yahoo.

Yahoo to sell its most valuable asset

Yahoo recently announced it would be spinning off its most valuable asset, a 15 percent stake in Alibaba worth nearly $40 billion. The move was applauded by shareholders but raises questions about what will happen to Yahoo once its biggest prize is no longer a part of its portfolio.

Yahoo once struggled for year with financial analysts saying it was the worst managed company in Silicon Valley. CEO Marissa Meyer took over the company two and a half years ago but her performance so far has received mixed reaction.

“She has taken a lot of good steps to bring in the right people but you know we’re still seeing revenue decline north of 1 percent in the last quarter so the jury is still very much out,” Senior Technology Analyst of BGC Partners, Colin Gillis said.

Analysts said Yahoo’s Alibaba spin off could also be ripe for a buyout and many are speculating the buyer could be Alibaba itself which would return the stake it sold to Yahoo a decade ago.


Chief Economist Max Wolff discusses Yahoo without Alibaba

CCTV America’s Michelle Makori interviewed Max Wolff, chief economist of Manhattan Venture Partners.

Chief Economist Max Wolff discusses Yahoo without Alibaba

CCTV America's Michelle Makori interviewed Max Wolff, chief economist of Manhattan Venture Partners.