Yahoo! Comments on Alibaba Investment

Jul.19.06 | About: Yahoo! Inc. (YHOO)

Yahoo! (NASDAQ:YHOO) had little to say about its Alibaba investment during last night's quarterly conference call. The following is an excerpt from a transcript of that call:

Sue Decker – CFO and EVP, Finance and Administration

Netting out the sources and use of cash, our ending cash and marketable securities balance was just below $4 billion, an increase of about $132 million from last quarter. Please note that this ending cash balance does not include several other important sources of incremental balance sheet value:

1. Our interest in Yahoo! Japan, which was valued at $10.6 billion at the end of Q2, representing more than $7 per share.

2. Our investment in Alibaba, which at the time of the transaction was valued at $1.4 billion, and is currently carried on our balance sheet at that value.

Comment: With no real word from YHOO execs on the status of its investment in Alibaba one must wonder if Alibaba is trully "Building a Bonfire with Yahoo! Money".