eFormula Evolution Review – Chinese e-commerce giant Alibaba is about to go public in what is most likely to become the biggest internet IPO ever, and Yahoo is going to reap a massive cash windfall. The company is required to sell half of its roughly remaining 23% of Alibaba.
Yahoo had bought about a 40% stake in Alibaba back in 2005. The company was worth $2.5 billion back then, but today Alibaba is valued at more than $200 billion! (Ultimately depending on the IPO of course). Therefore, Yahoo stands up to make about $12 billion (before taxes) when Alibaba�s shares start to trade publicly.
When Yahoo had sold its first batch of Alibaba shares, about half of its interest, Yahoo had roughly made $7 billion, which works out to be about $4.3 billion after taxes � most of which was returned back to shareholders. Institutional investors will push for something similar to be done by Yahoo this time as well.