In a somewhat surprising twist, given what's been surfacing recently, Yahoo will not keep the bulk of the money it's about to get from Alibaba. In fact, it will be giving most of it back to investors, though it's not clear in which form, dividends or buybacks.
Marissa Mayer is keeping a piece of the pie though, to have some cash on hand for whatever shows up.
But this means there will be no big acquisition, which is disappointing to those expecting some more spectacular moves from Yahoo under Mayer.
Yahoo is set to get some $4.3 billion, €3.28 billion, after taxes, from the $7.6 billion, €5.8 billion Alibaba is paying to get a piece of itself back from Yahoo. Of those $4.3 billion, $3.65 billion, €2.79 billion will be going straight to shareholders, Mayer will only be keeping $650 million.
"This outcome is terrific for Yahoo!. It generates liquidity to create substantial value for our shareholders, while retaining a meaningful amount in the company to invest in our future. Also, because we still own 23 percent of Alibaba's common stock, we have the opportunity to benefit from future upside when Alibaba IPOs," Mayer wrote in an internal memo.
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