Yahoo, in the wake of Microsoft's unsolicited takeover bid, is considering ways to better monetize its investment in Alibaba and Yahoo Japan--the idea being to appease shareholders inclined to
accept Microsoft's offer. Does this mean Yahoo is trying to stave off Microsoft's advances? Or does it mean the Web giant is simply trying to unlock more value prior to an inevitable sale?
The latter is more likely. Sanford Bernstein analyst Jeff Lindsay estimated last month that Yahoo's Asian assets were worth a combined $17.6 billion, or $13.24 per share, which at the
time represented 55 percent of the company's market capitalization. News of Microsoft's takeover bid was well received in Asia, as Softbank--the majority shareholder in Yahoo Japan--shares shot up 16
percent on the news. Yahoo Japan, in which Yahoo has a 33 percent stake, gained 9.5 percent. Meanwhile, Chinese ecommerce site Alibaba, in which Yahoo has a 40 percent
stake, has seen its stock suffer in recent months, but Yahoo has still seen its original $1.8 billion stake more than double since Alibaba went public. The Web giant will now have to ask itself
whether to completely exit a market of more than 200 million people and growing.
Read the whole story at Financial Times »