In all seriousness, $8B may sound like a bargain for one billion users + extra perks(like one of Internet's oldest brand). By comparison, what facebook spent $19.3B for WhatsApp, they weren't even reach one billion users! [1]
The issue with WhatsApp is that it never had a sustainable business model. First it was free with the hope of monetizing. Then it was free for a year, but a buck afterwards (pretty good if you ask me). Then WhatsApp found many users could partake of the e-economy due to lacking debit/credit cards, so it went back to free with some idea of Corporate relationships paying for things. (http://www.investopedia.com/articles/personal-finance/040915...)
No, it will include neither Yahoo Japan, nor the Alibaba stake [1]. Yahoo basically gets a licensing fee from Yahoo Japan, and the buyer would get that continued licensing revenue, but that's it.
18 comments
[ 519 ms ] story [ 133 ms ] threadDamn
Better idea, list it on Amazon, cross promote on Yahoo front page and pocket the affiliate fee.
[1]: https://en.wikipedia.org/wiki/WhatsApp
While Yahoo has been stagnant, it makes money.
Granted, most of that market cap value is tied up in the 15% ownership of Alibaba (market cap of $188B / yahoo's piece is $28B)[2][3]
Makes for an interesting thought experience on what the actual value of core Yahoo! really is.
And yes, $6-8B doesn't sound bad for a company with 1B unique vistors, but then again last year Yahoo! lost $4.4B [4]
[1] https://www.google.com/finance?q=yahoo&ei=-o8jV7HsKoWMmAGQ1I...
[2] http://www.google.com/finance?cid=658890
[3] http://dealbook.nytimes.com/2015/01/27/how-yahoos-spinoff-of...
[4] http://www.google.com/finance?q=NASDAQ%3AYHOO&fstype=ii&ei=F...
[1] http://wiki.fool.com/Falling_knife
Needless to say my new manager is from yahoo.
[1] http://fortune.com/2016/04/15/yahoo-sale-mayer/