Yahoo’s Alibaba Windfall: A $15 Billion Payday?

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May 7 (Bloomberg) -- Yahoo is selling 208 million shares, or about 40 percent of its Alibaba stake, in the Chinese Internet company’s upcoming initial public offering, and could generate in excess of $10 billion in the process. That would more than double Yahoo’s cash stockpile. Cristina Alesci reports on Bloomberg Television’s “In The Loop.” (Source: Bloomberg)

What will they do with all that money?

Christina g has been looking into this.

People have been buying into it because of yahoo!, they have gotten those properties for free in that whole paradigm.

What happened after the ipo?

Yahoo!

Will likely sell 40% of its stake.

Depending on the valuation you are looking at something between $10 billion and $50 billion.

We will see how much they pay out in taxes.

But i think that early on a lot of shareholders really expected that money back from ali baba.

Of course, that is not too much fun for a ceo to do.

It obviously wants to do more deals.

Any ceo would want to do more deals.

The real question goes back to your earlier point.

The stock had a 141% run-up in the last few years.

A lot of that has to do with alibaba.

When you talk about the valuation for yahoo!, the people i talked to yesterday when looking at valuations between three dollars per share and seven dollars per share.

Marissa mayer has something here, what is a going to be?

Can we see a bigger acquisition coming out with that cash?

We could.

There is a clear direction towards social and mobile, towards making yahoo!

A real company.

There has been a lot of chatter around pinterest and snapchat, companies that will not come cheap.

But then again you have the cash files to do it.

What she does with this cash will really, basically, determine the fate of yahoo!.

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

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