Scott, thanks so much for joining us.
Talk about this alibaba part of the equation.
What does this mean as far as the earnings and revenue go?
Well, what is important to keep in mind is yahoo!
Only owns that minority stake that you referenced, so it really does not roll up into the operating earnings picture.
However, from an asset value perspective and a people think about yahoo!
As a stop, here it really adds, we think, significant value, and we could make a good argument that it is the assets that are most relevant to the valuation of the company right now.
We mentioned that quick a statistic.
In this whole alibaba universe, more good passing through than between abbas on and ebay combined?
-- between alibaba and ebay combined?
And it seems like alibaba is only growing.
A lot of people do not know about alibaba.
Another thing to keep in mind, which it is astounding, it is not just one or two businesses.
They have a platform centered on business to business transactions.
They have a platform on business to consumer transactions, much like people think about, when they think about ebay, so this is really an e-commerce powerhouse that is centered in china but increasingly is looking abroad for customers and growth, and what is really noteworthy, we think, a lot of u.s. companies have tried to be successful in china with very, very limited success.
Hyundai took some assets and $1 billion, and basically in exchange received 40% of alibaba.
Just last september, they received 6 to $7 billion for half of that, and the other half they still own and are waiting to monetize, perhaps after an ipo.
Scott, it is hard to think about alibaba without thinking about jack, and legendary figure.
We know he is not leaving the company and is staying on as executive chairman.
What does this mean for the company?
It is interesting that he made that transition.
There is a new ceo and a new cfo, as well.
Perhaps, they are gearing up for a new chapter in the life of the company.
Jack is legendary.
He built in this business from the ground up.
He was competing at the time with ebay, which had its own offering in china, and people questioned the alibaba business model of not charging fees and building a user base and loyalty, and look where it got them some 10 years later.
I think is fair to say that ma is still important to alibaba, but he, himself, does not equate to the totality of the company.
I think the role he is plano is important, but he is not running the company any more.
-- he is playing is important.
Do you accept that, and does that valuation makes sense to you?
There have been a lot of indications really since september of last year, when yahoo!
And alibaba consummated a share return transactions where essentially yahoo!
Return shares of the alibaba group back to the company in exchange for that sum that we referenced earlier.
Of course, that agreement contemplated alibaba going public at some point over the following couple of years, which, you know, includes 2013, 2014, as well.
We did not think that alibaba was going to be published this year, and i think so far, we are right, and we think this could be associated with the things you referenced, the timing of an essential ipo , and there has been speculation about where alibaba would list, whether it would list in hong kong or the u.s., and that needs to be addressed, also, but a lot of people think about alibaba, and they think it could be worth $100 billion, which, i think, at this point is somewhat a stretch, when you think that china is still a market where there is a lot of uncertainty, regulatory, legal, what have you, but also, yahoo!
Has to play -- pay a lot of taxes if they are going to sell any further stake in the alibaba group.
This text has been automatically generated. It may not be 100% accurate.