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Yahoo's Alibaba Lockup: What Does It Mean for Investors?

Yahoo's Alibaba Lockup: What Does It Mean for Investors?

Assessment

Interactive Video

Business

University

Practice Problem

Hard

Created by

Wayground Content

FREE Resource

The video discusses Yahoo's strategic decisions regarding its stake in Alibaba. Yahoo has entered a lockup agreement to hold its shares for a year and a voting agreement with Alibaba's founders, impacting its ability to sell shares. This move is significant as Yahoo's holdings in Alibaba and Yahoo Japan are valued higher than its core business. Analysts have mixed ratings on Yahoo post-IPO, highlighting the importance of Alibaba's performance to Yahoo's future.

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5 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the main purpose of Yahoo's lockup agreement with Alibaba?

To hold shares for one year

To reduce their stake

To sell shares immediately

To increase their stake

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What did Yahoo agree to in the voting agreement with Alibaba?

To abstain from voting

To sell all shares

To vote against Alibaba management

To vote for director nominees of SoftBank and Alibaba management

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Who were given proxy voting rights in Yahoo's agreement with Alibaba?

Yahoo's shareholders

SoftBank's CEO

Alibaba's founders, Jack Ma and Joseph Tsai

Yahoo's board members

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How does Yahoo's stake in Alibaba and Yahoo Japan compare to its core business?

Less valuable

Equally valuable

More valuable

Not valuable at all

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a potential risk for Yahoo regarding its stake in Alibaba?

Loss of proxy voting rights

Increased competition from Google

Yahoo's declining core business

Alibaba's poor performance

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