Yahoo! CEO Denies Alibaba Stake Sale; Is She Playing Hardball?
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Yahoo Inc. (NASDAQ: YHOO) chief executive officer Carol Bartz said that the Internet search company does not want to sell its 39 percent stake in Alibaba Group back to the company, despite the Chinese Internet firm constantly approaching Yahoo about a sale of its stake.
Bartz told Reuters of the company's disinterest in a sale of the stake in an interview Wednesday after reports surfaced that a sale was imminent. She said that it is a great investment and that it is "very strategic."
A research report from Susquehanna analyst Marianne Wolk, citing a report on a Chinese Web site about a deal being imminent, said that the stake would be sold for $8 billion to $11 billion. Wolk said that this is much higher than what the Street forecasts.
"If Yahoo goes ahead with plans to sell advertising to Chinese companies from its Hong Kong site, it would put itself in direct competition with the Alibaba Group," Wolk stated in the report.
The Yahoo CEO sees the stake as a great way to invest in China, which is the largest Internet market in the world by number of users.
In May, Alibaba chief financial officer Joseph Tsai said that the company was ready to buy back its shares from Yahoo, while the company’s CEO David Wei added recently that it does not need a financial partner.
"The Yahoo! partnership has little strategic value for Alibaba Group," Wei said on September 10, according to a report from Bloomberg.
According to Wolk, there is also speculation that the Chinese government would prefer Alibaba Group were not controlled by foreign investors such as Yahoo.
Susquehanna is reiterating its Buy rating on Yahoo with a price target of $19.
Shares of Yahoo closed Wednesday up 64 cents or 4.69 percent to $14.27.
Bartz told Reuters of the company's disinterest in a sale of the stake in an interview Wednesday after reports surfaced that a sale was imminent. She said that it is a great investment and that it is "very strategic."
A research report from Susquehanna analyst Marianne Wolk, citing a report on a Chinese Web site about a deal being imminent, said that the stake would be sold for $8 billion to $11 billion. Wolk said that this is much higher than what the Street forecasts.
"If Yahoo goes ahead with plans to sell advertising to Chinese companies from its Hong Kong site, it would put itself in direct competition with the Alibaba Group," Wolk stated in the report.
The Yahoo CEO sees the stake as a great way to invest in China, which is the largest Internet market in the world by number of users.
In May, Alibaba chief financial officer Joseph Tsai said that the company was ready to buy back its shares from Yahoo, while the company’s CEO David Wei added recently that it does not need a financial partner.
"The Yahoo! partnership has little strategic value for Alibaba Group," Wei said on September 10, according to a report from Bloomberg.
According to Wolk, there is also speculation that the Chinese government would prefer Alibaba Group were not controlled by foreign investors such as Yahoo.
Susquehanna is reiterating its Buy rating on Yahoo with a price target of $19.
Shares of Yahoo closed Wednesday up 64 cents or 4.69 percent to $14.27.
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