How Yahoo! Benefits From Alibaba's U.S. IPO

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March 14 (Bloomberg) -- Alibaba Group is preparing to file for an initial public offering in the U.S. as soon as April, according to people with knowledge of the matter. Leslie Picker has more on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Because of alibaba, but because yahoo!

Still owns a chunk of this.

Exactly.

Yahoo!

Shares jumped on the news.

Those investors looking to get into yahoo!

Shares before they sell their stake.

We are looking at a massive sale for alibaba.

If it prices at 153 billion dollars, which is the average analyst estimate, that would be bigger than 95% of the s&p 500 companies.

Yahoo!

Itself only has a $38 billion market cap.

How much do they own, a quarter of alibaba?

24%. so that would be massive.

They would own $37.5 billion, exactly their market cap in alibaba in the price for that.

They probably won't sell it all right away.

They don't want every yahoo!

Shareholder to exit when alibaba goes public.

They will trickle them out.

Not sure exactly how much they will sell.

That is hopefully a finding that will, next quarter.

But yes, there is still a large chunk of money that they own.

Let me get straight what alibaba is.

We talk about it all the time.

Is it like the chinese amazon, or chinese ebay -- what exactly is it?

All of the above.

There is nothing similar to adhere.

-- to it here.

It is an e-commerce giant.

The way the business model works is different.

They make money through advertising, through search.

Not necessarily every time someone buys something they make money, which is how traditional e-commerce models work.

Another chinese e-commerce company looking to go public next quarter, as we reported they were a more traditional e-commerce, selling electronics, appliances.

Because of that, they have slightly lower margins than ali baba.

Can you buy a live chicken?

I think you can.

Have you looked in to see what you can buy there?

I have, but unfortunately i don't speak chinese.

I have relied on my hong kong counterparts.

I will look into this, see.

I will get someone who seeks chinese and i'm going to see all the cool stuff we can buy there, and next week i will give you a list of the most interesting -- i thought you were going to get these things for me.

It would take a while to ship.

A live chicken probably would not make it.

Leslie, thank you very much.

This text has been automatically generated. It may not be 100% accurate.

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