Re: Is this supposed to be a good deal for Yahoo! stockholders?
>What am I missing here?
That various shareholdings in Asia are not part of the sale and account for most of Yahoo's market cap
In fact, for quite a while, the shareholdings in Asia (Alibaba & Yahoo Japan) were worth more than Yahoo! 's market cap. Verizon is paying over $4bn for something which the market considers to have a negative value.
The only reason this makes sense is that there is a tax issue stopping Yahoo! from selling off all their Asian holdings and giving the cash straight to their shareholders. They wanted to do it, but the IRS warned they might be taxed, so they decided to sell Yahoo! proper instead.
Biting the hand that feeds IT
