Yahoo! Inc. (YHOO): Alibaba Buys Everything

Dan Rosensweig, CEO of Chegg, has delivered some of his thoughts on Alibaba’s US investments in a video segment on Bloomberg. The Chinese e-commerce giant, which plans its IPO in September, 2014, has significant stakes in a few high-flying startups, including SnapChat, Tango and Lyft. Some voices suggest that as Alibaba goes public it may even buy Yahoo! Inc. (NASDAQ:YHOO).

Yahoo! Inc. (NASDAQ:YHOO)

The company seems to have a pretty aggressive strategy when it comes to achieving ownership as it has hired a Liberty Media former executive that has the job to find good businesses and buy stakes in them. The ultimate goal of this shopping spree does not seem to be very clear.

Rosensweig has suggested that Alibaba may adopt a “wait and see” approach in order to identify winners, the same way Yahoo! Inc. (NASDAQ:YHOO) did with Alibaba. Or, at some point it may assemble pieces of investments and buy them, as it does at home.

“They’re assembling a collection of pieces through investments that they may put together one day, or at least to understand what is going on in the market so they can learn about it, and ultimately decide how to participate more successfully,” said Rosensweig.

Another interesting point made by Cory Johnson, journalist at Bloomberg, is about the opportunities that may arise for US companies when such a “blessed by Chinese government” company takes a stake in them. He argues that these companies will probably be allowed by Chinese authorities to tap the country’s enormous market, making them automatically more valuable. Other US companies that do not have Chinese investors are kept away, think Apple, Google and Facebook.

Ultimately, Rosensweig thinks that even though Alibaba has the capital to buy Yahoo! Inc. (NASDAQ:YHOO) now, such a transaction is unlikely to occur. Instead, he points that there is Softbank, who may be more interested in acquiring Yahoo! Japan.

According to some estimates the Alibaba may have a valuation of between $55 billion to more than $120 billion.

Disclosure: none

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

The 50 Best Personal Finance Blogs

Most Expensive Apartments in New York City

Bloodiest UFC Fights Ever Fought

Most Expensive Rum Brands in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!