In an article on CNBC, it was reported that investors are not interested in Yahoo! Inc. (NASDAQ:YHOO)’s earnings rather they would be waiting desperately to see how the company is planning to divest the Alibaba stake, which is around $41 of $49 per share price of Yahoo! Inc. (NASDAQ:YHOO). Most of the market capital influx and fame came to Yahoo because of Alibaba stake. The company has decided to spin off the Chinese e-commerce behemoth.
The source said that Yahoo! Inc. (NASDAQ:YHOO) stock would go up significantly if the company announce a tax-free spin off because it will generate massive savings. Otherwise, in case of a normal spin-off, Yahoo! Inc. (NASDAQ:YHOO) stock will decline. Investors are pretty much nervous after the announcement by Yahoo! Inc. (NASDAQ:YHOO) CEO Marissa Mayer in which she said that she will plan about Alibaba very soon. After the announcement, a plethora of rumors hit the news which suggested that Yahoo is going take some decisions which might not be pleasant for the investors. Yahoo! Inc. (NASDAQ:YHOO) has declined to comment on these reports, according to the article.
The source said that Yahoo! Inc. (NASDAQ:YHOO)’s board and investors have mixed opinions regarding Alibaba stake. One of the famous investors in Yahoo, Starboard Value is arguing for a tax-free spin-off and a merger with AOL. Yahoo has completed its one-year lock period and now the company is free to share and disclose its intentions.
Starboard is not happy with Yahoo! Inc. (NASDAQ:YHOO). A few months ago, it sent a letter to Yahoo in which it expressed its resentments over Yahoo’s acquisitions.
David E. Shaw’s D.E. Shaw & Co., L.P. reported owning about 16.19 million shares in Yahoo! Inc. (NASDAQ:YHOO) by June 30.