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: John P. Henrie who wrote (12579)	7/10/1998 9:23:00 AM
From: Rajiv	Read Replies (2) of 27307

When a company needs to raise funds, it seeks the cheapest source. A private placement of stock is very expensive. In this case, a private placement to Softbank is the cheapest source. Softbank already holds 29%. The fees/commissions, etc. will be minimal as compared to a secondary or a private placement to institutional investors. It however means dilution to the other shareholders. Likewise, a company would never use stock to raise funds if it felt its stock was undervalued Softbank thinks it is undervalued. If they are buying here, it means that they are unlikely to sell their shares in the near future. Whether they made a smart decision is a different issue. IMO, the private placement of equity has nothing to do with yesterday's selloff towards the close. The cause is - speculative/momentum money leaving Yahoo (people selling on the news/locking in profits, etc.) Regards. Rajiv

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