Heres How Alibaba Could Buy Yahoo for Nothing

The transcript discusses Alibaba's historic IPO, which raised $25 billion and saw a 38% stock surge on its first trading day. It highlights Yahoo's significant stake in Alibaba, considered its biggest asset. Matt Levine suggests a potential deal where Alibaba could buy Yahoo for $7 billion in cash and 384 million Alibaba shares, offering an 8% premium to Yahoo's price. This deal would effectively return Alibaba's investment, providing a strategic opportunity for investors.

What was the amount raised by Alibaba in its IPO?

• $35 billion

• $30 billion

• $25 billion

• $20 billion

How much did Alibaba's stock increase on its first day of trading?

• 58%

• 38%

• 28%

• 48%

What is considered Yahoo's biggest asset?

• Its email service

• Its search engine

• Its news portal

• Its stake in Alibaba

What premium was suggested for Alibaba to buy Yahoo?

• 5%

• 8%

• 10%

• 12%

How many Alibaba shares were proposed in the hypothetical buyout of Yahoo?

• 350,000,000

• 384,000,000

• 400,000,000

• 300,000,000