Barron's on Yahoo's stake in Alibaba (YHOO)

by: Ezra Marbach

Key extracts from this week's Barron's:

....Yahoo! (ticker: YHOO) is paying $1 billion for a 40% stake in a company that last year had just $60 million in sales. Thus, the price is more than 40 times revenue.

....Alibaba's chief financial officer, Joe Tsai, reckons the combined entity is worth some $4 billion....

....Right now, the business-to-business activity is "very profitable," he says. It generated revenues, based on U.S. generally accepted accounting principles, of $40 million and, on a cash basis, over $60 million.

....At the moment, Alibaba has no plans to go public....

Comment: You can read the rest of the Barron's article here (subscription required).

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