Royal Deer Design » Alibaba https://www.royaldeerdesign.com Web Design Company Thu, 21 Aug 2025 15:08:29 +0000 en-US hourly 1 Yahoo!’s recent sale to benefit investors https://www.royaldeerdesign.com/2012/10/yahoos-recent-sale-to-benefit-investors/ https://www.royaldeerdesign.com/2012/10/yahoos-recent-sale-to-benefit-investors/#comments Sat, 13 Oct 2012 22:58:07 +0000 http://coot.arvixe.com/~royald/?p=938 Yahoo! recently sold its shares in the Chinese enterprise, Alibaba, for $7.6 billion. After taxes, the take- home funds will be around $4.3 billion. Great news for investors in Yahoo!: the after tax monies, around $3.65 billion, will be funneled back to the company?s shareholders.

The deal

  • Yahoo!’s investments in Alibaba totaled a 40% stake in the company
  • Alibaba paid Yahoo! approximately $6.3 billion in cash + $800 million in preferred shares
  • A one time $550 million cash payment was related to both companies’ intellectual property agreement

Predictions

Yahoo! purchased the shares in Alibaba back in 2005 for $1 billion. It is still unclear how Yahoo! intends to return the profited funds, but rumors include possible buybacks or dividends. A buyback would allow investors the option of selling back part of their shares at a premium. This option would also benefit Yahoo! by boosting its stock price. Another prediction proposes that Marissa Mayer, Yahoo!’s new CEO, may use the cash to purchase promising startups.

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