Feeds

Yahoo! shares! leap! on! asset! sale! gossip!

Plan to flog Alibaba and Yahoo! Japan stakes pleases investors

High performance access to file storage

Shares in Yahoo! got a bump yesterday on rumours that the company is considering getting rid of most of its Alibaba stake and all its stake in Yahoo! Japan.

Those folks familiar with the matter told Reuters that the ailing web firm could offload the Asian assets in a deal worth around $17bn, a step in the right direction as far as investors were concerned.

The shares climbed 5.82 per cent in yesterday's trading to $15.99, and had risen 3.19 per cent in pre-market trading today as of 10am GMT.

The Asian assets idea is the latest in a string of possible moves Yahoo! has talked about in an effort to revive its flagging fortunes.

There have been strong rumours that the firm could sell off part or all of itself to private equity investors. The idea of PE firms bagging a minority stake, leaving the same status quo at the top, was not a popular one with shareholders, particularly activist hedge fund manager Dan Loeb from Third Point.

Both China's Alibaba and Japan's Softbank, owner of the rest of Yahoo! Japan, have also been reported as interested in buying up some or all of the US side of the firm.

Alibaba chief Jack Ma has made no secret of the fact that a lot of his interest in buying Yahoo! stems from his desire to claw back the bit of Alibaba the US company has, so a deal to transfer back some of the 40 per cent of the Chinese firm would no doubt please him.

Although the deal would leave Yahoo! still holding a 15 per cent stake in Alibaba, according to the sources.

Bagging a few billion to sort itself out seems like a good idea, but the company would still have to come up with a plan to make its US business profitable, and most market watchers aren't putting too high a value on that side of Yahoo!

If the Asian asset deal is indeed worth $17bn, it puts the value of Yahoo!'s US business at a pretty paltry sum, considering the market capitalisation of the entire firm is around $19bn, which isn't a great vote of confidence on the management's ability to turn the US unit around. ®

High performance access to file storage

More from The Register

next story
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.