Yahoo’s Alibaba Windfall Means Firepower to Chase Google
Bloomberg reports on sunny days ahead for Yahoo, for they are soon to receive a generous cash injection in return for their nine-year investment in Alibaba Group Holding Ltd. Yahoo selling 208 million worth of shares means generating excess of $10 billion, which in turn means makes for more than doubling their cash stockpile. The question on everyone’s lips now revolves around what exactly Marissa Mayer plans to do with the money. She could return cash to shareholders through a buyback or dividend, or focus on expansion through acquisitions, and it seems the latter is more appealing. With this kind of fire-power in the form of Yahoo’s Alibaba windfall, it’s perhaps her best shot yet at narrowing the ever-widening gap between Yahoo and Web rivals such as Google…
To read more, click here.