Yahoo! (YHOO) May Set Deal To Sell Asia Assets

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Published
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

http://platform.twitter.com/widgets/hub.1324331373.html

Yahoo! (NASDAQ: YHOO) may set a deal to sell part of its Asia assets in a deal worth $18 billion. The transaction would involve a drop in its ownership of Alibaba from nearly 50% to 15%. Yahoo! may do the same with Softbank, with which it owns Yahoo! Japan.

So far, Wall St. knows enough about the media reports of the deals that it has driven Yahoo!’s stock 6% higher in a day.

But, many other attempts by the Yahoo! board to increase value have failed. The company brought in Silicon Valley Carl Bartz only to fire her earlier this year. The company has also done a joint venture with Microsoft (NASDAQ: MSFT) on search which has yielded only modest success

According to Reuters

In the deal under contemplation, Yahoo would effectively transfer most of its 40 percent slice of Alibaba back to the Chinese company and all of its stake in Yahoo Japan to Softbank Corp, sources said.

Alibaba and Yahoo Japan would each create separate legal entities where they would put cash and operating assets, and then trade those with Yahoo, making the deal tax-free, the sources said.

At the end of the contemplated transaction Yahoo would retain a 15 percent stake in Alibaba, the sources said.

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

Featured Reads

Our top personal finance-related articles today. Your wallet will thank you later.

Continue Reading

Top Gaining Stocks

CBOE Vol: 1,568,143
PSKY Vol: 12,285,993
STX Vol: 7,378,346
ORCL Vol: 26,317,675
DDOG Vol: 6,247,779

Top Losing Stocks

LKQ
LKQ Vol: 4,367,433
CLX Vol: 13,260,523
SYK Vol: 4,519,455
MHK Vol: 1,859,865
AMGN Vol: 3,818,618