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Alibaba Raises $21.8B in Initial Public Offering

nytimes.com

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Re: Alibaba Raises $21.8B in Initial Public Offering

#11

Post by ChuckMcM »

skuhn wrote: post #5

Alibaba going for a higher selling price just makes the continued undervaluing of Yahoo itself increasingly hilarious. At some point, I would think someone will want to buy them for all of this free money they have sitting around. YHOO market cap : 42.3bn + liabilities : 3.7bn = 46bn (to own outright) Meanwhile: Cash on hand = 1.1bn + Other assets = 15.3bn + Cash from Alibaba sale = 8.3bn + Value of remaining Alibaba…

Heh, and people nit picking that you can't get 17B$. Sheesh, lets just sell the crap for 10 cents on the dollar and get $1.7 BILLION in cash for "free". That would make a hell of an entry on the old 1040

   proceeds from short term capital gains: 1,700,000,000
I'm sure someone at Goldman Sachs is all over this :-)

Re: Alibaba Raises $21.8B in Initial Public Offering

#12

Post by arasmussen »

ChuckMcM wrote: post #11
skuhn wrote: post #5

Alibaba going for a higher selling price just makes the continued undervaluing of Yahoo itself increasingly hilarious. At some point, I would think someone will want to buy them for all of this free money they have sitting around. YHOO market cap : 42.3bn + liabilities : 3.7bn = 46bn (to own outright) Meanwhile: Cash on hand = 1.1bn + Other assets = 15.3bn + Cash from Alibaba sale = 8.3bn + Value of remaining Alibaba…

Heh, and people nit picking that you can't get 17B$. Sheesh, lets just sell the crap for 10 cents on the dollar and get $1.7 BILLION in cash for "free". That would make a hell of an entry on the old 1040 proceeds from short term capital gains: 1,700,000,000 I'm sure someone at Goldman Sachs is all over this :-)

> 1,700,000,000

You missed a few digits there ;)

Re: Alibaba Raises $21.8B in Initial Public Offering

#13

Post by dragonwriter »

skuhn wrote: post #7
dragonwriter wrote: post #6

Earlier quoted context omitted.

You are kind of assuming that you can have a "firesale" that realizes the full current market value of the $31 billion in Alibaba and Yahoo Japan stock. That's somewhat improbable.

True, this is very naive and presumes you can sell everything for their accounting values without moving the market price or people realizing what you're doing. However, $17bn is a pretty big window of error, and this isn't even taking into account the crazy notion that you could keep running the actual business. It has revenues of $1bn a quarter, nothing to sneeze at.

> However, $17bn is a pretty big window of error

Is it? Sell everything else at accounting value and realize a little under half price on the combined Y! Japan and Alibaba stock, and suddenly you are merely breaking even.

> and this isn't even taking into account the crazy notion that you could keep running the actual business. It has revenues of $1bn a quarter, nothing to sneeze at.

Revenues aren't profits. And Yahoo's net income is all over the map ($1.37B in 2013, $3.95B in 2012, $1.05 in 2011) -- there's no clear trend in the value of running the business, and I think one of the reasons Yahoo stock is so apparently undervalued given a simplistic look at assets and liabilities is the market doesn't really think Yahoo! has much of a roadmap for running the actual business.

Re: Alibaba Raises $21.8B in Initial Public Offering

#14

Post by [deleted] »

ChuckMcM wrote: post #11
skuhn wrote: post #5

Alibaba going for a higher selling price just makes the continued undervaluing of Yahoo itself increasingly hilarious. At some point, I would think someone will want to buy them for all of this free money they have sitting around. YHOO market cap : 42.3bn + liabilities : 3.7bn = 46bn (to own outright) Meanwhile: Cash on hand = 1.1bn + Other assets = 15.3bn + Cash from Alibaba sale = 8.3bn + Value of remaining Alibaba…

Heh, and people nit picking that you can't get 17B$. Sheesh, lets just sell the crap for 10 cents on the dollar and get $1.7 BILLION in cash for "free". That would make a hell of an entry on the old 1040 proceeds from short term capital gains: 1,700,000,000 I'm sure someone at Goldman Sachs is all over this :-)

[deleted]

Re: Alibaba Raises $21.8B in Initial Public Offering

#15

Post by rthomas6 »

skuhn wrote: post #5

Alibaba going for a higher selling price just makes the continued undervaluing of Yahoo itself increasingly hilarious. At some point, I would think someone will want to buy them for all of this free money they have sitting around. YHOO market cap : 42.3bn + liabilities : 3.7bn = 46bn (to own outright) Meanwhile: Cash on hand = 1.1bn + Other assets = 15.3bn + Cash from Alibaba sale = 8.3bn + Value of remaining Alibaba…

So should I buy some Yahoo stock?

Re: Alibaba Raises $21.8B in Initial Public Offering

#16

Post by [deleted] »

rthomas6 wrote: post #15
skuhn wrote: post #5

Alibaba going for a higher selling price just makes the continued undervaluing of Yahoo itself increasingly hilarious. At some point, I would think someone will want to buy them for all of this free money they have sitting around. YHOO market cap : 42.3bn + liabilities : 3.7bn = 46bn (to own outright) Meanwhile: Cash on hand = 1.1bn + Other assets = 15.3bn + Cash from Alibaba sale = 8.3bn + Value of remaining Alibaba…

So should I buy some Yahoo stock?

[deleted]

Re: Alibaba Raises $21.8B in Initial Public Offering

#17

Post by curun1r »

skuhn wrote: post #5

Alibaba going for a higher selling price just makes the continued undervaluing of Yahoo itself increasingly hilarious. At some point, I would think someone will want to buy them for all of this free money they have sitting around. YHOO market cap : 42.3bn + liabilities : 3.7bn = 46bn (to own outright) Meanwhile: Cash on hand = 1.1bn + Other assets = 15.3bn + Cash from Alibaba sale = 8.3bn + Value of remaining Alibaba…

I think you've got a mistake with how you've figured in liabilities. They should be subtracted from assets, not market cap. So, using your numbers, the difference is closer to $10b, not $17b.

Re: Alibaba Raises $21.8B in Initial Public Offering

#18

Post by baddox »

> Though it did not claim the title of biggest initial public offering ever, Alibaba will still lay claim to having held one of the biggest stock sales on record, surpassing offerings from Facebook and General Motors.

If you're curious (I was), Wikipedia puts the Agricultural Bank of China as the largest IPO, with Facebook at number 6.

http://en.wikipedia.org/wiki/Initial_public_offering#Largest...

Re: Alibaba Raises $21.8B in Initial Public Offering

#19

Post by baddox »

rthomas6 wrote: post #15
skuhn wrote: post #5

Alibaba going for a higher selling price just makes the continued undervaluing of Yahoo itself increasingly hilarious. At some point, I would think someone will want to buy them for all of this free money they have sitting around. YHOO market cap : 42.3bn + liabilities : 3.7bn = 46bn (to own outright) Meanwhile: Cash on hand = 1.1bn + Other assets = 15.3bn + Cash from Alibaba sale = 8.3bn + Value of remaining Alibaba…

So should I buy some Yahoo stock?

Why would that follow?

Re: Alibaba Raises $21.8B in Initial Public Offering

#20

Post by marco1 »

baddox wrote: post #18

> Though it did not claim the title of biggest initial public offering ever, Alibaba will still lay claim to having held one of the biggest stock sales on record, surpassing offerings from Facebook and General Motors. If you're curious (I was), Wikipedia puts the Agricultural Bank of China as the largest IPO, with Facebook at number 6. http://en.wikipedia.org/wiki/Initial_public_offering#Largest...

Yet it was America's biggest IPO to date, right before Visa Inc. with $19.7B. The other three went public in China (Hong Kong Stock Exchange).
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