Heres How Alibaba Could Buy Yahoo for Nothing

Heres How Alibaba Could Buy Yahoo for Nothing

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Interactive Video

Business

University

Hard

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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.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What did Matt Levine suggest Alibaba could offer to Yahoo?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

How much cash and how many shares did Yahoo have according to the text?

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