http://profitableinvestingtips.com/stock-investing/breaking-up-yahoo Breaking Up Yahoo Yahoo, the once dominant presence on the internet is breaking up. The best investment that Yahoo made this century was its stake in the Chinese online retailer Alibaba. Unfortunately Yahoo does not want to pay the taxes required if they sell their stake. And the rest of Yahoo is in a long slow slide downhill. So, breaking up Yahoo is the choice that they have made but what they are breaking off is the core business and what they are keeping is their stake in Alibaba! The New York Times writes about Yahoo’s plan to spin off its core business. Yahoo said on Wednesday that it had dropped a plan to spin off its $31 billion stake in Alibaba, the Chinese e-commerce company. Instead, the company will spin off all of its other assets, including its stake in Yahoo Japan, into a new company. The decision not to sell the Alibaba stake, which was reported on Tuesday, was driven by “the market’s perception of tax risk” associated with the Alibaba plan, Yahoo said in a statement on Wednesday morning. “The board remains committed to accomplishing the significant business purposes and shareholder benefits that can be realized by separating the Alibaba stake from the rest of Yahoo,” Maynard Webb, the chairman of Yahoo’s board, said in the statement. “To achieve this, we will now focus our efforts on the reverse spinoff plan.” Yahoo shareholders would end up with stock in both companies. The company said the new plan might take a year or more to conclude. It appears that breaking up Yahoo in this fashion will result in more shareholder value as the new entities will probably be worth $40 for each share of Yahoo which is worth $35 a share today.

1. By www.ProfitableInvestingTips.com

2. Yahoo, the once dominant
presence on the internet is
breaking up.

3. The best investment that Yahoo
made this century was its stake
in the Chinese online retailer
Alibaba.

4. Before We Continue…
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5. Unfortunately Yahoo does not
want to pay the taxes required if
they sell their stake.

6. And the rest of Yahoo is in a long
slow slide downhill.

7. So, breaking up Yahoo is the
choice that they have made but
what they are breaking off is the
core business and what they are
keeping is their stake in Alibaba!

8. The New York Times writes about
Yahoo’s plan to spin off its core
business.

9. Yahoo said on Wednesday that it
had dropped a plan to spin off its
$31 billion stake in Alibaba, the
Chinese e-commerce company.

10. Instead, the company will spin
off all of its other assets,
including its stake in Yahoo
Japan, into a new company.

11. The decision not to sell the
Alibaba stake, which was
reported on Tuesday, was driven
by “the market’s perception of
tax risk” associated with the
Alibaba plan, Yahoo said in a
statement on Wednesday
morning.

12. “The board remains committed
to accomplishing the significant
business purposes and
shareholder benefits that can be
realized by separating the
Alibaba stake from the rest of
Yahoo,” Maynard Webb, the
chairman of Yahoo’s board, said
in the statement.

13. “To achieve this, we will now
focus our efforts on the reverse
spinoff plan.”

14. Yahoo shareholders would end up
with stock in both companies.

15. The company said the new plan
might take a year or more to
conclude.

16. It appears that breaking up Yahoo
in this fashion will result in more
shareholder value as the new
entities will probably be worth
$40 for each share of Yahoo
which is worth $35 a share today.

17. A Slow Decline

18. The Guardian writes
about Yahoo’s seemingly
permanent decline.

19. Critics are blaming CEO Marissa
Mayer for failing to turn the
company around.

20. Is Yahoo approaching its final
yodel?

21. The tech company is reportedly
in talks to spin off its core
business, as well as whether to
finally divest its remaining stake
in Chinese e-commerce company
Alibaba, the latter fabulously
lucrative, the former … well, not
so much.

22. The lion’s share of the blame for
what ad industry analyst Brian
Wieser called a state of
“seemingly permanent decline”
in a note to investors this week
is falling on its once celebrated
CEO, Marissa Mayer.

23. Mayer arrived with much fanfare
from Google with plans to
restart the ailing tech company.

24. Google’s 20th employee and a
self-described “geek”, Mayer
promised a “renewed focus on
product innovation to drive user
experience and advertising
revenue”.

25. But critics charge Mayer has
failed to pick a direction in the
three years since her elevation.

26. But Mayer did not take over a
thriving company and run it into
the ground.

27. Yahoo had been losing ground for
a decade.

28. It used to be the internet giant
and has been passed by the likes
of Google and Amazon.com.

29. Who Would Want to Buy
Yahoo’s Core Business?

30. There is a lot of speculation that
once they are done breaking up
Yahoo, someone will come in and
buy the core business.

31. Fortune speculates that on why
Verizon would buy Yahoo.

32. Verizon’s strategy is own the
connectivity through its wireless
business, and offer content
through its media business.

33. Verizon is “creating a media
company to deal with the digital
millennials that are out there,”
McAdam said.

34. That includes Verizon’s Go90
app, which launched in October
and has not cracked the top 100
apps in Apple’s App Store,
according to analytics company
App Annie.

35. Verizon even hired 1,000 people
in Silicon Valley to work with
startups, though McAdam didn’t
elaborate as to how they do
that.

36. Given that strategy, it’s easy to
see why Verizon might want to
acquire a digital media property
like Yahoo YHOO 0.52% .

37. Yahoo as part of a large and
stable business might make sense
and help bring that core business
back to life.