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Strategies & Market Trends : Greater China Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Glenn Petersen who wrote (7926)	9/25/2013 7:46:24 PM
From: Julius Wong	Respond to of 8334

As of today, Yahoo! owns 24% of Alibaba. When Alibaba IPOs, Alibaba has the right (which they will certainly execute) to buy back half of that stake from Yahoo! at the Alibaba IPO price. They will also likely buy back $835 million worth of preferred shares which Yahoo! owns in them. At a $62.5 billion IPO price, Alibaba will have to buy Yahoo!’s stake for $7.5 billion plus the $835 million for the pref shares. At a $100 billion IPO price, Alibaba will have to buy Yahoo’s stake for $12 billion plus the $835 million for the pref shares. forbes.com