All eyes are on Yahoo! Inc. (NASDAQ:YHOO)‘s CEO Marissa Mayer and to what exactly is she going to shop with her overflowing piggy bank from Alibaba Group Holding Ltd (NYSE:BABA)‘s IPO. Doug MacMillan who is a tech reporter for Wall Street Journal laid out Mayer’s options on Fox Business.
While talking about the $5.1 billion that Yahoo! Inc. (NASDAQ:YHOO) is expected to rake in by selling some of its stake in Alibaba Group Holding Ltd (NYSE:BABA), MacMillan drew attention to what Mayer’s management style has been during her two years in the driving seat as Yahoo’s CEO. She has mostly been busy with acqua-hires that have failed to move the needle for Yahoo! Inc. (NASDAQ:YHOO).
Now equipped with firing power from Alibaba Group Holding Ltd (NYSE:BABA)’s treasure, Mayer can make substantially more expensive investments that could give Yahoo! Inc. (NASDAQ:YHOO) a greater chance to grow, contrary to what Mayer’s prior investments have brought to the table.
“[…] Marissa wanted to go more in advertising technology, more into mobile, more into video, so there are potentially some start-ups out there, some companies out there that Yahoo! Inc. (NASDAQ:YHOO) could spend a billion, 2 billion maybe even 3 or 4 billion dollars on and really kind of stake her claim on the strategic direction on this company […],” said MacMillan.
The question is: could Marissa Mayer equal or even surpass the high return investment that Yahoo! Inc. (NASDAQ:YHOO) made in Alibaba Group Holding Ltd (NYSE:BABA) years ago? Hush is the word from the Yahoo! Inc. (NASDAQ:YHOO) camp while they are on the lookout for an Alibaba Group Holding Ltd (NYSE:BABA) story of 2014.
Meanwhile, as MacMillan pointed out, Yahoo’s investors are anxiously waiting for their share of the Alibaba pie as Yahoo announced that half of its proceeds from the IPO will be handed out to its investors in the form of dividends, or a share buyback program, or even a mix of both.
Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.