Yahoo: How to Spend US$ 6.2bn?

Posted by Joachim Bartels | Sep 26, 2012 | Alibaba, China, E-Commerce, United States, Yahoo | 0 |

Yahoo sold half of its holdings in Alibaba for about $7.6 billion. Yahoo received approximately US$6.3 billion in cash and US$800 million in preference shares in Alibaba Group. Concurrent with the initial repurchase, Alibaba Group paid Yahoo a one-time cash payment of US$550 million in connection with the amendment of their existing technology and intellectual property license agreement.

After taxes, Yahoo anticipates a $4.3 billion windfall. The company plans to spend $3 billion of that buying back its stock, leaving another $1.3 billion for acquisitions or other investments.

According to the latest news Yahoo CEO Marissa Mayer is casting aside a cost-cutting specialist and bringing in software industry veteran Ken Goldman to be chief financial officer as the Internet company’s management orchestrates a potentially expensive turnaround attempt.

Source: Press Reports

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Joachim Bartels

Joachim C Bartels is a co-founder, director, head of information resources and Editor-in-Chief of BIIA. In his capacity as Editor-in-Chief he is responsible for the selection of relevant information content concerning industry insights, trends, technological developments, standards and policies impacting BIIA members in particular and the business information industry in general.

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