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Yahoo! Inc. (YHOO) Is 384 million Alibaba Group Holding Ltd (BABA) Shares and $7 billion In Cash Away From Bidding Mayer Farewell

Antidote for Yahoo! Inc. (NASDAQ:YHOO)‘s stock price is with Alibaba Group Holding Ltd (NYSE:BABA) and not AOL, Inc.(NYSE:AOL), as right now the biggest concern is tax. Erik Schatzker revealed the secret recipe that will get the job done for Alibaba Group Holding Ltd (NYSE:BABA), in a panel discussion on Bloomberg. 1

Yahoo! Inc. (NASDAQ:YHOO) has had quite a few suitors lately, because the investor community know that the company’s pockets are flush with cash following Alibaba Group Holding Ltd (NYSE:BABA)’s IPO, and the only time for the company to make a turnaround is now. If Marissa Mayer,  Yahoo! Inc. (NASDAQ:YHOO)’s CEO starts investing, or rather spilling away all that Alibaba Group Holding Ltd (NYSE:BABA) cash herself, nothing can be done.

A lot has already been said about Mayer’s shortcomings as an investor. Now is the time to focus on the solution or in other words, Alibaba Group Holding Ltd (NYSE:BABA), rather than the problem itself. After a dazzling debut on NYSE, it seems that the e-commerce giant holds the key to unlocking Yahoo! Inc. (NASDAQ:YHOO)’s value as well. It’s all summarised in a three letter word called ‘T.A.X’. Schatzker reflected light on how Alibaba Group Holding Ltd (NYSE:BABA) could benefit from the tax efficiency mechanism that it will create in its wake of acquiring Yahoo.

“[…] My favourite proposal for Yahoo! Inc. (NASDAQ:YHOO) comes from our own Bloomberg columnist, Matt Levine who said, all that Alibaba Group Holding Ltd (NYSE:BABA)  needs to do is put up 384 million shares of its own stock and $7 billion in cash to buy Yahoo. It would be the equivalent of $42 a share, roughly speaking and […] Yahoo has precisely 384 million Alibaba shares and they key here, if I may add, is that Alibaba Group Holding Ltd (NYSE:BABA)  is the only buyer who doesn’t face the tax liability that Yahoo face if they would have to sell the Alibaba shares,” said Schatzker.

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