Altaba Inc. (formerly Yahoo) Message Board

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Technology Stocks : Altaba Inc. (formerly Yahoo)

AABA 19.63

0.0%

Nov 6 4:00 PM EST

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To: fut_trade who wrote (3157)	11/23/1997 7:11:00 PM
From: Bill Harmond	Read Replies (3) of 27307

>>How do you know Softbank had been reporting gains in stock prices as profits? Peter, they're probably not. Unless Japan has some creative accounting rules that we don't know about, Sankar's running off here. Companies don't report stock gains on the earnings line until they're actually realized. The chunk of Yahoo that Softbank sold previously was reported as earnings (as an extrordinary gain, not from operations), but investments are carried on the balance sheet (generally at cost), not on the income statement. The "Sankar Scenario" is fun to speculate about. The Softbank house of cards implodes, banks in Korea call back loans, Softbank dumps 14,000,000 shares of Yahoo on the public markets in a desperate effort to meet the loans...and thud, Yahoo at $6. Yahoo itself probably has the right to buy back the Softbank shares on a first right basis anyway. I'd love Yahoo to buy back Softbank's shares at $6! It would be one of the best things for Yahoo shareholders that could happen. Sankar's right about one thing, excessive debt can be a very bad thing.

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