Valleywag
Countless departing Yahoos tell me the company's worthless. I dismissed that as disgruntled ex-employee talk, until I started doing some math. After rallying in October, Yahoo shares are trading near a 52-week low, with its market cap around $32 billion. Not exactly worthless, right? Ah, but that includes the value of Yahoo's investments.
Yahoo Japan, of which Yahoo owns a third, is worth $25 billion, putting Yahoo's stake in it at nearly $9 billion. Alibaba.com, a Chinese e-commerce company in which Yahoo directly owns a 10 percent stake, is worth $17 billion. Tack another $1.7 billion on. That figure doesn't include Alibaba.com's parent company, Alibaba Group, which runs Yahoo China and in which Yahoo owns a currently illliquid 40 percent stake. Estimates of its value are running between $8 billion and $16 billion. Yahoo has other investments like G-Market. Add it up, and you realize that Yahoo's wholly owned operations in America and Europe are valued by the market at next to nothing, especially compared to the multiples other Web companies are getting.
Good thing Yahoo president Sue Decker has a Wall Street background, because at this rate, she might as well be running a mutual fund.
Comments
Pretty much. I doubt Yahoo Japan is worth 25B.
Sad and worthless. I hear the morale there is below the ground.
Don't slam Sue Decker, she had the acumen to unload that GOOG stock when it was $200.
How they can be said with such colorful happy logo?
I use Yahoo for Yahoo finance, and my running group uses Yahoo Groups. Other than that, yeah that's about it. Now AOL, that one, as we all know needs to be ignited because the smell is wafting.
Illiquid is a strange enough word without an extra ell, Owen...
Mandarin- Yahoo Japan is worth that based on market cap- so you can doubt it all you want to, and it may change but that is the universal way to describe the value of a public co.
Yahoo is the best finance site (free) hands down.
Here’s the latest action: 1. Intelius readies for $140M+ IPO 2. Battery start-up A123 predicts IPO 3. Hollywood writer pied piper raising $30M 4. Liberty Media ups holding in IAC 5. Is Yahoo imploding? 6. Flip.com flops, but embraces Facebook 7. Job cuts at music industry giant, EMI? 8.
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