Should You Invest in Altaba?
What's left of the company formerly known as Yahoo has started trading as a closed-end management company.
Yahoo has officially changed its name to
As mentioned in our June 14 note, our valuation of Altaba is based on Morningstar’s fair value estimate for Alibaba of $148 per ADS and JPY 480 per share for Yahoo Japan. We have also taken into account possible tax liabilities based on unrealized capital gains of those two holdings. Further, we are assuming a potential $448 million liability related to Yahoo’s data breaches, of which Altaba will be responsible for 50%. Last, we have included net cash of $10 billion in our valuation, representing the $4.48 billion received from Verizon and a cash balance of $7 billion reported on Yahoo’s March 2017 balance sheet, partially offset by $1.3 billion in senior convertible notes due in 2018.
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