Yahoo! Inc. (YHOO)’s Investors Watch Closely as Alibaba Group’s IPO Gets Delayed


Alibaba Group’s IPO, which is being closely followed by Yahoo! Inc. (NASDAQ:YHOO)’s shareholders, is facing some minor troubles. The US Securities and Exchange Commission (SEC) reviewed the documents submitted by the Alibaba Group and stated that it has to submit additional information. The Alibaba Group is fighting against time here as the company has already announced that it will launch its IPO in the coming weeks and this decision by SEC can delay it by a few days. Yahoo! Inc. (NASDAQ:YHOO) being one of the largest investors in the company is counting big on Alibaba’s success. Leslie Picker reported on this delay that the company faces and how it will affect the company’s IPO on Bloomberg, recently.

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“A source familiar with the situation told me that they were waiting on a final round of SEC comments. These are of course when the SEC reviews the prospectus and looks at different things that they need more information on, they think investors need to know. Once they received that final round of SEC comments, they realize there is too much work to do that they cannot get done by today […] So, they decided it was best to push it back by about a week,” Picker said.

When asked about whether this was bad for the company, Picker’s response was that it can only be known for sure when the company discloses the comments made by the SEC, which will be on the day it comes out with its prospectus. Picker highlighted that in the past many companies have gone through similar experiences and it’s not necessarily a bad thing when SEC asks for additional information.

Picker also added that transparency is one of the most important things for investors. According to her, the number one priority for investors when the Alibaba group goes for its IPO will be asking the top management, what other areas are significant for the company apart from its e-commerce arm.

As of June 30, 2014, David E. Shaw‘s firm D.E. Shaw owns over 16 million shares in Yahoo! Inc. (NASDAQ:YHOO) .

Disclosure: None

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