Yahoo (NASDAQ:YHOO) Sells 40% Stake to Alibaba for $7.1B- YHOO, GOOG, AOL, DELL, EBAY, MSFT, RIMM
Yahoo! Inc. (NASDAQ:YHOO) publicized on Monday that it will sell as much as its 40% stake in Chinese e-commerce powerhouse Alibaba Group for $7.1 billion, ending years of restless talks over how to take out value from its most prized asset.
Yahoo also surged its stock repurchase approval by $5 billion to $5.5 billion as a result of the agreement but said it may as an alternative opt to distribute some of the proceeds throughout a dividend.
The sale, reported on Monday, gives Yahoo $6.3 billion in cash and equal to $800 million of new Alibaba preferred stock, and for after taxes, Yahoo will clear $4.2 billion.
Yahoo shares started surging on Friday as word of the imminent agreement spread. They surged as much as 3.8% in trading on Monday before ending the day up 1%, or 16 cents, at $15.58.
Turning towards the sector Google Inc (NASDAQ:GOOG) rose +2.28%, AOL, Inc. (NYSE:AOL) grew +3.73%, Dell Inc. (NASDAQ:DELL) moved up +1.56%, eBay Inc (NASDAQ:EBAY) advanced +3.00%, Microsoft Corporation (NASDAQ:MSFT) which also increased +1.64% and Research In Motion Limited (USA) (NASDAQ:RIMM) surged +4.64%.
Yahoo! Inc. (NASDAQ:YHOO) dropped 1.04% or +$0.16 to close the trading at $15.58 following it hit intra day high level of $16.00. The total traded volume in the previous trading session was 51.15 million shares as compared to average 16.57 million shares. Its fifty two week trading range was $11.09 – $16.99. The total market capitalization reached $18.99 billion.
The stock price was ahead its 52 week low price with 40.49% and it lagged behind -8.30% from its 52 week maximum mark. Stock price volatility for last month remained 2.10%. In its share capital, the company has 1.22 billion outstanding shares out of which 1.10 billion shares have been floated in the market. For now, stock ownership with company’s management remained 0.32%.
YHOO presented an optimistic weekly performance of 0.52% with respect to its rate of return and it remained -0.13% for the month. However, the performance for a quarter experienced a positive change of 5.63% and it slumped -4.42% for a year and its year to date performance remained in red with -3.41%.
Current stock price is in the upbeat territory taking into account of 20 days moving average with 1.21% and continued bullish run for 50 days moving average with +2.21%. Its earning per share for the past twelve months was $0.88. Company’s beta coefficient was at 0.91. Beta measures the amount of market risk associated with market trade.