Yahoo Contemplates Future Alibaba Spinoff

The video discusses the options available for handling a large stake in a public company, specifically focusing on Yahoo's stake in Alibaba. It explores the typical approach of selling shares and the associated tax implications. The video then delves into alternative strategies like a cash rich spinoff, which requires Alibaba's involvement, and a pure spinoff favored by shareholders. The challenges and potential outcomes of these strategies, including the impact on Yahoo's market cap and the possibility of a merger with AOL, are also discussed.

What is the main financial challenge Marissa Mayer faces if Yahoo sells its stake in Alibaba?

• A potential lawsuit from Alibaba

• A loss of shareholder trust

• A decrease in Alibaba's market value

• A $15 billion tax bill

What is a key requirement for a cash-rich spinoff involving Alibaba?

• Yahoo must merge with AOL

• Yahoo must sell its core business

• Alibaba must acquire a new business

• Alibaba must increase its market value

Why is Alibaba not interested in participating in the cash-rich spinoff?

• They plan to sell their own shares

• They are focused on other priorities

• They disagree with Yahoo's strategy

• They lack the necessary funds

What is the potential impact of a pure spinoff on Yahoo?

• It would double Yahoo's market value

• It would leave Yahoo much smaller

• It would increase Yahoo's stake in Alibaba

• It would eliminate Yahoo's core business

What merger possibility is suggested for Yahoo's core business?

• A merger with Yahoo Japan

• A merger with Alibaba

• A merger with AOL

• A merger with Starboard