DanLoeb
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Yahoo starts selling half of its Alibaba stake as promised, sends $3.65 billion to giddy shareholders
Anyone who's been holding on to Yahoo shares through thick and thin is about to reap the rewards of that patience. As the company promised, it's starting to sell back half its stake in Alibaba, closing the first stage of the deal with the equivalent of $7.6 billion in pure revenue. The struggling search and content firm 'only' pockets a net $4.3 billion after taxes and other overhead costs, but it won't even see that much in its bank account: it's purposefully sending $3.65 billion of that money to shareholders, both to inspire new confidence and (unofficially) to head off activist investors like Dan Loeb that might otherwise want a coup d'état. If share owners plan on using the second stage of the sale to fund a vacation to Maui, though, they'll need to wait. Yahoo's deal prevents it from selling half of its remaining 23 percent stake unless Alibaba files for an initial public offering, and there's no guarantee that investors will see another dime of the proceeds.
