The
American multinational Internet Corporation Yahoo! Inc.is among the world’s
leading companies for providing the best Internet services. Among the several
internet services Yahoo provides there are Yahoo Search engine Web portal,
Yahoo Mail, Yahoo Directory, Yahoo News etc. and the social media website it
owns. Every month around 700 million Internet users enter Yahoo websites according
to news sources. Reports confirm that each month Yahoo manages to gather more
than 500 million consumers of 30 and above languages.
Yahoo
was also founded by a charm of two namely Jerry Yang and David Filo who a year
later on March 1, 1995 incorporated the company. On a turn of events, Marissa
Mayer, the ex-Google executive was elected CEO and President of Yahoo on Juky
16, 2012.
The
21% increase in the total number of visitors per year led Yahoo to achieve
victory over Google for the first time after May 2011. Report from ComScore
show 196 million American visitors during July 2013 who accessed the Yahoo
websites beating the all-time champ Google.
According
to recent Yahoo Stock news, Yahoo managed to introduce its mixed Q2 earnings.
While just a few sentences would have sufficed for the answer everyone had
awaited-yes, Yahoo still has tons of moneybags to carry on with more
acquisitions. The share buyback programme of the company is evidence to it. It
can be read in the release that Yahoo purchased 25 million shares worth $653
million at the second quarter of 2013. What is even better about these shares
is that they can be sold for cold cash after being reissued. Marissa Mayer sold
40% of Yahoo’s Stocks to Alibaba for $7.6 billion in September back in 2012. To
be safe for the company’s own future some $3.56 billion was set aside to so it
may be reinvested on a better time.
It
is to clear understanding now that the company shall try moving even further.
The SEC has authorized Yahoo for using its $5 billion share buyback, which
Yahoo plans to exploit to the max. The greatly exaggerated reports regarding
Yahoo’s cash disappearance right after the $1.1 billion Tumblr acquisition are
now taking toll.
Many
are unfamiliar with the buyback program and for those; the stock can be either
reissued or cancelled at another date. Since the Yahoo’s existing shares are
not diluted whereas the new shares can have the same stock number, it’s a large
win for the company in case if the YHOO Stock is reissued.
As if nothing has merely happened.
Among
the several advantages from this stunt, there is another compensation as well.
If Yahoo shows it is confident making the notion that its own stock is the best
investment so far. It will raise Yahoo Stock Share Price slightly since the
outstanding shares are less.
Yahoo
Stock Prices have done outstandingly well for the past year. An incredible
71.8% raise is observed compared to the share price of 15.65 on July 2012 with
26.88, which that’s price is. This beats all its adversaries’ even eBay, Apple
or Google.
More
than what any company could spare, Yahoo can throw away $3.65 billion worth in
acquisitions due to the success of its buyback program. This is also because
the net worth of its portfolio is way more today, than it ever was. It’s a good
plan as long as the stock keeps going up.
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