The sum-of-the-parts story at Yahoo (YHOO) is overblown and misunderstood there’s no way this ends well for investors. Shares are up 5% this week on the self-imposed ultimatum to decide what to do with the Alibaba (BABA) stake.
This is the shit I’m talking about. Saw this today:
Line item: $ billions
Yahoo market value: $33.7
less Alibaba: $32.2
less Yahoo Japan: $8.8
less cash: $5.9
plus long-term debt: $1.2
Value of Yahoo’s core business: -$12
When the market is paying you to own something, it’s for a good reason. As I said – “I hope all the longs in Yahoo go broke. It’s well deserved. In truth – anyone who uses a SOTPs thesis deserves to make the hobo village under the Manhattan bridge their hometown.”
Today is D-day for the grand Yahoo plan and board meeting marathon, deciding whether to spin off Alibaba or hopefully con some PE firm into buying the core business. We shall see. FYI, no position.
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