Yahoo, Softbank back Chinese e-commerce giant Alibaba in fallout
In the past year , as the graph above shows , has been Yahoo! ' s stock on a steady rise , from well under $ 20 to now just over $ 32 a share - the highest level in almost seven years. The company is now worth around $ 33,000,000,000th
So what is behind the new-found love ? Yahoo is basically still a bit player in search , with only 11.4 percent of the market. And according to Ad Age , changes in the advertising market and a shift of users on mobile devices to a 11 percent decrease in Yahoo! led ' s core business of selling large display ads.
Certainly the big, glamorous profile of Marissa Mayer CEO has contributed to Vogue to focus attention on the company.
HistoryThe company also has a new design of high-traffic website. Meanwhile, it is muscular sports and financial sectors (Yahoo Sports is consistently near or at the top of sports sites such as Yahoo Finance for companies) have helped here , Yahoo! to top Google as most popular site in July. And that's not even counting the billions of page views nicked by the recent acquisition Tumblr.
Speaking of Tumblr, perhaps the purchase of a site with so much street cred among tech- savvy hipsters , the company increased the usefulness . There were also numerous reports about the change in culture at Yahoo, once seen as stodgiest the big tech companies. Another advantage could be that keep investors interested in the company to participate in Yahoo! Japan, the nation's most visited web - portal .
But no, the real reason for the interest in Yahoo has called to do with a Chinese e- commerce giant Alibaba. When Scott Kessler of Standard & Poor recently it's on Bloomberg News , "To be realistic, we think a large part of the profits and a lot of the interest in Yahoo shares are predicated on one thing , and that is Alibaba. " ....
What? AlibabaA woman walks past a wall of advertising on Alibaba in Hangzhou , Zhejiang Province on 26 September 2013 start . ( Chance Chan / Reuters ) Investors have long pointed out that Yahoo! 's investments in Asia, especially its stake in Alibaba , which controls about 80 percent of e -commerce burgeoning Chinese market, a hidden source of value were . But it was never an easy way for the company to unlock that value , or for investors to understand exactly how much percentage Yahoo! is worth . Alibaba is a privately owned company in a country where financial transparency is rarely based . That's changed in the past year . In September last year, Yahoo and Alibaba made a deal in which Yahoo received $ 7.6 billion half of its stake in Alibaba . The left Yahoo still have about 23 percent of the company. The cash from this deal was Yahoo! breathing space not only with shareholders - the company spent a large portion of the proceeds to buy back its own shares - but also make for the purchase of fast-growing companies like Tumblr. Both these trends are good news for the stock. The more speculation about Alibaba plans have increased the number of investors have been eager to invest in Yahoo as a way of gaining indirect exposure to a fast-growing company .
And this week it was revealed that Alibaba is planning an IPO in New York, which to the company as much as $ 75000000000 to stage could appreciate . After the shares start trading , it will be easy for investors to see how valuable Yahoo! 's remaining shares in the company.
Investors may want to curb some of their enthusiasm . Reports surfaced that the real reason Alibaba decided to work in the U.S. in Hong Kong list because the company's founders wanted to iron control instead of ceding too much to keep to the shareholders control. And the record of Chinese companies go public in the U.S. has not always been outstanding.
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But now investors are enthusiastic. They are expressing their enthusiasm by the exclamation mark back in the shares of Yahoo! for the media-savvy makeover coming. Stay for the chance to participate in the huge head of the Chinese e -commerce industry