Feeds

Yahoo! punts! $3.6bn! to! shareholders! after! Alibaba! deal!

Gold, by the powers! Now, what'll us do with it, eh?

Build a business case: developing custom apps

Yahoo! has closed the $7.6bn stage of its sale of stock to Alibaba, bagging $4.3bn in cash after taxes and fees.

Alibaba has long wanted the share in its stock sold back to Yahoo! so it can have greater independence and go for its own stock market flotation in the next few years. But it took over two years of negotiations for cash-strapped Yahoo! to come to a deal with the Chinese firm.

Yahoo! has already promised the lion's share of the deal to its irate shareholders, tired of lower and lower returns from their investment. The web firm said in a canned statement that 85 per cent of the money will go to stockholders, totalling $3.65bn. That leaves around $650m for Yahoo! to try and turn its fortunes around with.

"The Yahoo! board and management have met, reviewed the strategy with regard to the proceeds, and are pleased to announce that we will be returning $3 billion of the proceeds to shareholders in addition to the 'down payment' of $646 million made over the past few months," newly-minted chief exec Marissa Mayer said in a tinned statement. "This yields a substantial return for investors while retaining a meaningful amount of capital within the company to invest in future growth."

Yahoo! had held a 40 per cent stake in Alibaba and with the deal done, it still holds 23 per cent, a tidy bundle it will no doubt be hoping to profit from when the Chinese firm floats.

"After an IPO, Yahoo! has the right to sell its remaining shares at its discretion following a customary lock-up period," we are told. ®

5 things you didn’t know about cloud backup

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer quits Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.