Yahoo
stocks are
moving in the direction that many financial experts did not predict. For many
of them, it is becoming difficult to see Yahoo Inc competing with names like Facebook and Amazon in the long run. However the recent news of Alibaba soon
moving towards its initial Public Offering (IPO) very soon as left many
pondering what this will mean for Yahoo
stocks. Yahoo own s about 25 % stake in Alibaba and will look to benefit
from Alibaba ‘s IPO . However the true stature of the financial side of this
Chinese E-Commerce website will only come to light after the documents are
compiled in order to see through its Initial Public Offering. Though
Alibaba is bound to enter the big league
of tech firms registered at NASDAQ. Many are predicting that Alibaba can easily
raise about $20 Billion from the IPO.
If this kind of amount is
successfully raised Yahoo will have to sell its stake in Alibaba. Yahoo Inc.
may be able to bag around $10 Billion if all goes according to plan. This
windfall can provide a massive boost for not only Yahoo stocks but for the
company in general . Facebook ‘s acquisition of Whatsapp Inc. not that long ago
has reminded Yahoo that it too needs to continue to think out of the box and
strategically grow in the longer sphere of things. Yahoo Inc. desperately needs
to use these funds efficiently as well
as wisely use them for the company to compete with the best.
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