Yahoo! Inc. (YHOO) Eager To Get $122 Million From Alibaba Group Holding Ltd (BABA)’s Remaining Stake?


Yahoo! Inc. (NASDAQ:YHOO)’s CEO Marissa Mayer looked optimistic when she talked about third quarter reports of her company. Yahoo! Inc. (NASDAQ:YHOO)’s expectations from Alibaba Group Holding Ltd (NYSE:BABA) were at the peak before the IPO, but the future plans of somewhat troubled Yahoo are still in the dim. Discussing Yahoo! Inc. (NASDAQ:YHOO)’s future strategy about Alibaba Group Holding Ltd (NYSE:BABA) in a program, CNBC’s Jim Cramer and David Faber said that Marissa Mayer is playing smart moves. She recently reached an agreement with Alibaba after which, Yahoo will not sell the remaining stake in Alibaba Group Holding Ltd (NYSE:BABA), which is worth of $122 million.

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Yahoo! Inc. (NASDAQ:YHOO) got $9.4 billion before tax by selling Alibaba Group Holding Ltd (NYSE:BABA)’s shares. The company earned $543 million and beat street’s consensus estimates by 32 cents. Cramer said that Yahoo can still relate itself to Alibaba Group Holding Ltd (NYSE:BABA) in the US because both companies have a strong working relationship.

David Faber said that there was a huge difference between Yahoo’s buy back and acquisitions. Faber quoted Marissa Mayer and said that Yahoo! Inc. (NASDAQ:YHOO) is still looking to work with Alibaba Group Holding Ltd (NYSE:BABA) in the future. Mayer thinks that her company has come far and fast with the Chinese e-commerce giant.

Faber said that Yahoo! Inc. (NASDAQ:YHOO) still owns around 18% of Alibaba Group Holding Ltd (NYSE:BABA) in a tax efficient manner. He thinks that sooner or later, Yahoo will divest Alibaba stake, but currently, they are weighing their options for the future. Yahoo! Inc. (NASDAQ:YHOO) reported $200 million in the mobile sector which shows the strength of the company. Native ads were also a strong sector for the company. Mobile apps and advertisement is of huge importance for Yahoo! Inc. (NASDAQ:YHOO) because the company is in a desperate need of cash.

 John Thaler‘s Jat Capital Management hold around 8.8 million Yahoo! Inc. (NASDAQ:YHOO) shares.

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