Some interesting math is emerging now that Alibaba has closed a round of finance with DST, Silver Lake and others that valued Alibaba at $32 billion.
The interesting part is Yahoo (YHOO), which owns 43% of Alibaba and some other valuable stuff. Read on.
I ran some calculations and to me it shows Yahoo trading at under $2 billion enterprise value.
Here’s the math, in billions $:
$32.00 Alibaba latest financing with DST and Silver Lake (Yahoo owns 43% of Alibaba)
$13.76 Yahoo’s Alibaba stake value
$0.62 Value of Yahoo’s 35% stake in Yahoo Japan
$18.36 YHOO market cap as of Sept. 27, 2011 close
$4.60 YHOO market cap LESS Alibaba stake
$3.98 YHOO market cap LESS Yahoo Japan stake
$2.55 YHOO cash MRQ
$1.43 YHOO market cap – offbalance sheet assets + cash
$0.04 YHOO debt MRQ
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$1.47 BILLION YHOO core enterprise value
WTF, over? $1.47 billion core enterprise value for a global Internet brand and over 500 million users.
Sure, Yahoo has problems. Yes, it has no CEO. But the way the last one performed that’s maybe a good thing.
With private company valuations for Twitter, Zynga and others soaring passed the $7 billion range EACH, it makes zero sense to me that Yahoo with its cash, brand, goodwill and off balance sheet assets is valued at $1.47 billion effectively.
If I was Steve Ballmer I’d be on a plane to Sunnyvale, CA tonight and get this deal done.
Or AOL’s CEO Tim Armstrong. He ought to be camping out at Yahooville and do a stock deal, roll this up ASAP.
I don’t see Silver Lake or DST continuing to let Yahoo control such a big piece of Alibaba. That’s the spark here. The fire is on.
Steve Harmon
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