Yahoo! to share Alibaba IPO proceeds with investors
SAN FRANCISCO — Yahoo! will return at least half of the cash it reaps from Alibaba Group Holding’s initial public offering to shareholders, providing solace to investors who have hung on as CEO Marissa Mayer struggles to revive sales.
SAN FRANCISCO — Yahoo! will return at least half of the cash it reaps from Alibaba Group Holding’s initial public offering to shareholders, providing solace to investors who have hung on as CEO Marissa Mayer struggles to revive sales.
The United States Web portal is also keeping a bigger stake in the Chinese e-commerce company, ensuring that Yahoo! continues to benefit from its investment in the world’s largest Internet market.
The plans for Alibaba were a bright spot in a report Tuesday that showed Yahoo!’s sales fell last quarter, missing analysts’ projections.
The Web portal will now sell 140 million shares at Alibaba’s market debut, down from an originally planned 208 million, said Yahoo!’s chief financial officer Ken Goldman. Alibaba has been valued at US$168 billion (S$208.7 billion), based on analyst estimates, and its IPO may be the largest in US history. Yahoo! has a stake of about 23 per cent.
Yahoo!’s sales, excluding revenue shared with partner websites, was US$1.04 billion in the second quarter, missing analysts’ average estimate of US$1.09 billion, data compiled by Bloomberg showed. Net income attributable to Yahoo! was US$269.7 million in the second quarter, down from US$331.2 million a year ago. Bloomberg