What’s a YHOO share worth when Alibaba IPO trade @$60

B

blnbr

According to the news report, the initial price range of Alibaba shares will be set between $60 and $66 a share.

Yahoo own roughly 22.5% of Alibaba.

So what’s a YHOO share worth based on Alibaba IPO price @$60?
 
$42-$43 has been my guess. You have to discount the Alibaba shares because as they sell, they owe taxes. The balance is restricted which also decreases it's value.
 
And after taxes, Yahoo will waste it on some ill-conceived acquisitions and management salaries. If they cared about their shareholders, they'd have spun the BABA stake off so you could keep it without paying taxes (or spun the YHOO part out and left the BABA as the core, same effect).
 
Interesting idea, but I don't think they could spin off the restricted stock. The best they can due after the IPO, is a tracking stock, I would not do that. They can't get way from the the corp. tax.
 
1245 said:
Interesting idea, but I don't think they could spin off the restricted stock. The best they can due after the IPO, is a tracking stock, I would not do that. They can't get way from the the corp. tax.
More...
Yeah, I think they'd have to spin out everything else. That way you're left holding the restricted stock in a YHOO shell. But the management wouldn't spin themselves off of the BABA value, because they wouldn't have enough cash to subsidize their salaries/endeavors if they did that.
 
USA TODAY-24 minutes ago: (BABA) That was revised five times to $90 to $91. NYSE officials said that shares may not begin trading until 11:30 a.m.,..

But YHOO is only up $0.07 and trading @ 42.15 as I type this message... YHOO call options are also down quite a bit right now. What's this implying?
 
Now BABA is trading at $95+, but YHOO at the same time has moved very little. YHOO is trading like unrelated to BABA price:confused: :(
 
You must log in or register to reply here.
Back
Top