Yahoo Inc. (NASDAQ:YHOO), has seen a lot of activity happening over the last few days. We bring to you an update of the buzz at Yahoo. First up the company announced the appointment of its new chairman, Maynard Webb, who was serving as interim chairman since April. Maynard has formerly served as the Chief operating officer at eBay Inc. (NASDAQ:EBAY). The change comes at a time when Yahoo has seen its revenue from core advertising business stall as customers find favor with competitors such as Google and Facebook. However, since the appointment of Mayer as CEO, the company has been busy diversifying its income stream and operations through a number of acquisitions.
One of their many investments was in Alibaba, the Chinese E-commerce giant. Yahoo’s current stake in Alibaba is 24% and with the currently public estimates of Alibaba at $128 billion it means Yahoo’s stake is worth $28.8 billion, which is slightly higher than Yahoo’s current Market cap of $27.88 billion. Another important fact is the stake bought by the Alibaba group in Shoprunner.com; an US based online shopping service offering 2 day delivery on any of its products. This is the second investment by Alibaba in a US E-commerce company in recent times, following its June investment in Fanatics Inc. This puts Alibaba in direct competition with the likes of Amazon and eBay Inc.It looks like Alibaba too has joined Yahoo in an acquisition spree. With Alibaba looking at a possible IPO, a windfall income for yahoo Inc. is definitely around the corner, which isn't currently reflected in Yahoo’s balance sheet. The single investment in Alibaba adds a ton of strength to Yahoo’s balance-sheet making it the golden Apple in Yahoo’s basket.
To see Yahoo’s latest stock price movement, click here (NASDAQ:YHOO)
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