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Article Description: By Matt Levine @Bloomberg view - analyzing the current valuation of yahoo considering its holdings in Alibaba and yahoo japan

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Content: use HTML Edit Content <h1 style="text-align: center;">Yahoo! valuation ?</h1> <h2>[WHAT]</h2> <ol> <li>] By Matt Levine @Bloomberg view - analyzing the current valuation of yahoo considering its holdings in Alibaba and yahoo japan</li> </ol> <h2>[WHY]</h2> <ol> <li>]&nbsp;</li> </ol> <h2>[WHERE]</h2> <ol> <li><strong>] READ THE FULL ARTICLE</strong></li> <ol> <li>]&nbsp;<a href="http://www.bloombergview.com/articles/2014-04-17/how-can-yahoo-be-worth-less-than-zero" target="_blank">http://www.bloombergview.com/articles/2014-04-17/how-can-yahoo-be-worth-less-than-zero</a></li> </ol></ol> <h2>[WHEN]</h2> <ol> <li>] 2014-04-17</li> </ol> <h2>[EXAMPLE auto summary]</h2> <ol> <li>] <span style="background-color: #00ff00;">Whatever you think Yahoo is</span>, a <span style="background-color: #00ff00;">35 percent</span> stake in a separate but similar publicly traded company called <span style="background-color: #00ff00;">Yahoo Japan</span>, and a <span style="background-color: #00ff00;">24 percent</span> stake in a separate, different, soon-to-be-publicly traded company called<span style="background-color: #00ff00;"> Alibaba</span>.</li> <li>] My Bloomberg View colleague Matt Klein ran the numbers in March, and non-Bloomberg-affiliated Matt Matt Yglesias ran them again today, and <span style="background-color: #00ff00;">the numbers tell you that 2+3 &gt; 1+2+3,</span> as it were: Yahoo's Alibaba and Yahoo Japan stakes add up to be worth more than Yahoo is worth.</li> <li>] So <span style="background-color: #00ff00;">Core Yahoo could in fact have a negative value to Yahoo's shareholders</span>, by reducing the amount of Alibaba that they effectively get.</li> <li>] A fun question is, as fiduciaries for shareholders, should Yahoo's directors split into three separate companies to maximize value? If YJHI and YAHI are worth around $9 billion and $40 billion, and Core Yahoo Inc.</li> <li>] That's as true of Alibaba and Yahoo Japan as it is of Core Yahoo: Each of those businesses would, as a matter of arithmetic, be worth more on its own than it is in Yahoo.</li> <li>] Each share of those businesses that Yahoo owns is worth less to Yahoo shareholders than a share that those shareholders own directly.</li> <li>] Incidentally, Dan Loeb's 2011 activist campaign at Yahoo included arguments for unlocking the value of Alibaba and Yahoo Japan, but at the time he estimated that Alibaba was worth $25 billion and that Core Yahoo had some positive value, so he didn't give it the focus it might get now.</li> </ol><hr /><ol> <li><strong>] yahoo is ..</strong></li> <ol> <li>] whatever you think Yahoo is, example "Tumblr and Flickr and the iOS weather app that I love and all the news sites and the mail and the fantasy sports stuff" --&nbsp;</li> <ol> <li>+] yahoo finance +] yql</li> </ol> <li>] a 35 percent stake in a separate but similar publicly traded company called Yahoo Japan, and</li> <li>] a 24 percent stake in a separate, different, <a title="" href="http://www.bloomberg.com/news/2014-04-15/alibaba-profit-grows-ahead-of-initial-public-offering.html" rel="external">soon-to-be-publicly traded</a> company called Alibaba.</li> </ol> <li><strong>] the numbers tell you that 2+3 &gt; 1+2+3,</strong></li> <ol> <li>] 1= &nbsp;is worth a negative amount of money, something like negative $13 billion today</li> </ol></ol> <h2>[HOW-TO]</h2> <ol> <li>]</li> </ol> <h2>[REFERENCE]</h2> <ol> <li>] marissa mayer</li> <ol> <li>] links to articles on marissa, yahoo</li> </ol> <li>] TAG related</li> <ol> <li>] business/analysis/ ? valuation ? company</li> </ol></ol> <h1 style="text-align: center;">&nbsp;</h1>