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Posted on by January 27, 2015

Yahoo to spin off its stake in Alibaba | Computerworld

Yahoo will spin off its stake in Alibaba Group to form a new investment company, placating shareholders who wanted more value from Yahoo’s share in the Chinese e-commerce giant.

The investment company, SpinCo, will own all of Yahoo’s remaining 384 million shares of Alibaba stock, valued at $40 billion based on the Jan. 26 closing price, Yahoo announced Tuesday.

Yahoo originally invested one billion in Alibaba, purchasing a forty percent stake in the company.  In 2012, it sold half of that stake back to Alibaba for 7.6 million dollars.  Had it held on to those shares another two years, the stake would have been worth 80 billion.

That 2012 sellback doesn’t look all that smart today, but hey.  Without that initial investment, it’s very likely that Yahoo wouldn’t even exist today.

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About Bill Quick

I am a small-l libertarian. My primary concern is to increase individual liberty as much as possible in the face of statist efforts to restrict it from both the right and the left. If I had to sum up my beliefs as concisely as possible, I would say, "Stay out of my wallet and my bedroom," "your liberty stops at my nose," and "don't tread on me." I will believe that things are taking a turn for the better in America when married gays are able to, and do, maintain large arsenals of automatic weapons, and tax collectors are, and do, not.

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