Alibaba’s forthcoming IPO will have a significant impact on Yahoo, but it’s not likely to cause many ripples in the U.S. e-commerce market overall. Although this one deal will make Yahoo more money than it has made in years of struggling, it could lead to its demise as an independent entity. “Since Yahoo’s total Alibaba stake is worth about $36 billion and Yahoo’s market capitalization is $42 billion, it would only take about $6 billion to control Yahoo, with all its users and still-popular properties,” said Covestor’s Barry Randall.
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Wall Street Strings Taut as Alibaba Edges Toward IPO
Posted by: Richard Adhikari September 15, 2014 04:15 PMAlibaba’s forthcoming IPO will have a significant impact on Yahoo, but it’s not likely to cause many ripples in the U.S. e-commerce market overall. Although this one deal will make Yahoo more money than it has made in years of struggling, it could lead to its demise as an independent entity. “Since Yahoo’s total Alibaba stake is worth about $36 billion and Yahoo’s market capitalization is $42 billion, it would only take about $6 billion to control Yahoo, with all its users and still-popular properties,” said Covestor’s Barry Randall.