Yahoo's spin-up, Altaba, sells all of its stake in Alibaba and closes its doors – TechCrunch

Goodbye, Altaba . The Yahoo spinout created to host the lucrative participation in Alibaba and Yahoo Japan, announced today its intention to sell its lucrative stake in Alibaba and close its doors.

The entity has long existed as an agent of Alibaba – some will even say that Yahoo was the same in recent years – and the sale is expected to bring about $ 40 billion to shareholders.

Altaba was created following the acquisition of Yahoo by AOL in 2017 to create Oath (Veraimer Media Group) to retain the 15% stake in Alibaba and 35.5% in Yahoo Japan owned by Yahoo.

These Yahoo Japan shares were unloaded in September for more than $ 4 billion. Altaba will now transfer its remaining shares to Alibaba, accounting for about 11% of the company after a partial sale last year. Altaba is Alibaba's second largest player – and will disappear from the world in the fourth quarter.

The sale is expected to generate a net return of approximately $ 40 billion for Altaba's shareholders (ranging from $ 39.8 to $ 41.1 billion based on share price and related expenses), and will run in two times. The first project will see up to 50% of the sale sold, the rest will be exchanged if Altaba receives the approval of its shareholders.

Altaba – and Yahoo's long badociation – with Alibaba will be completed. The reality is that this has basically happened as a result of the oath agreement. Altaba was simply created to hold this badet and at some point it would mean liquidation. This day is now confirmed and on the way.

"Since June 2017, we have taken a series of aggressive steps to generate shareholder value. These resulted in measurable results, our trading discount was reduced and our stock significantly outperformed a composite of its underlying badets. The plan we are announcing today is the most decisive step we can take to reduce the discount on the net badet value at which our shares are traded, "said Thomas J, Managing Director of Altaba. McInerney in a statement.

"Stocks are for trading. Any shareholder has the right to trade in shares at any time on the market, for any purpose. We are pleased to have already asked Yahoo to invest in Alibaba and to see it now reaping a significant return on its investment, "said an Alibaba spokesperson at TechCrunch.

The story of Yahoo's collaboration with Alibaba is legendary.

In 2005, Yahoo had invested $ 1 billion in Alibaba (30%) through a (now-famous) story between Yahoo CEO Jerry Yang and Alibaba President Jack Ma. Ma, a former professor of 39, who was then a government employee, was instructed to accompany Yang on a planned trip to see the Great Wall of China and their relationship started from there.

Yahoo made infamous half of its stake in Alibaba in 2012 through a transaction valuing equities at $ 13. Only two years later, Alibaba publicly announced its IPO. The shares cost $ 68 a bell and today they are worth about $ 181. Yahoo has missed an even bigger fortune.