Yahoo! Inc. (NASDAQ:YHOO)’s shareholders continue to wait in anxiety on the much discussed Alibaba IPO, especially after the company confirmed it would return the maximum value to them. Sources had initially claimed that the IPO was to take place on August 8, 2014, but Bloomberg’s, David Ingles, is now reporting that the IPO looks set to take place on the September 16, less than a month from now.
The revelation is a big relief for Yahoo! Inc. (NASDAQ:YHOO)’s shareholders, taking into consideration CEO, Marisa Mayer, has been trying her level best to revive the company’s declining sales. Yahoo! Inc. (NASDAQ:YHOO) is not expected to sell all its stake in Alibaba as the search engine company continues to hold on to optimism that its valuation will be impacted in the long run with the ongoing partnership.
“According to our sources, it should be on September 16 the trading debut, which is 28-29 days, less than a month let’s put it that way,” said David Ingles.
The IPO date looks to have been pushed back after Alibaba admitted to having detected some accounting flaws with its film unit, Alibaba Pictures that it bought for $800 million. Alibaba was supposed to release its financial results later this month, but has postponed the same as it tries shell out the issues.
Another blow, that might befall Yahoo! Inc. (NASDAQ:YHOO) in its push for the Alibaba IPO, is the fact that the latter has admitted that because it is not used to these kind of preparations gearing into an IPO, the same might be delayed because of unseen challenges. Alibaba has not yet filed with the SEC, which is a requirement for any company going public in the U.S., for the protection of the rights of potential investors who would wish to know what they are buying.
“Some of these things come up, and Alibaba actually in the latest set of amendments they gave, basically said, “you know we don’t have a lot of experiences integrating a lot of these deals so we could actually see some problems.” So they’ve already given some heads up,” said Mr. Ingles