Yahoo amends Alibaba IPO deal, guides below consensus


Yahoo (NASDAQ:YHOO) has further amended its IPO share sale agreement with Alibaba (Pending:BABA): The company is now only required to sell 140M Alibaba shares at IPO time, down from a prior 208M.

Yahoo also promises to return "at least half of the after-tax [Alibaba] IPO proceeds to shareholders." That could translate into several billion worth of buybacks and/or a big special dividend.

The company guides in its Q2 earnings slides (.pdf) for Q3 revenue (ex-TAC) of $1.02B-$1.06B, below a $1.1B consensus. Adjusted EBITDA is expected to fall to $220M-$260M from $331M a year earlier, and op. income is expected to total $70M-$110M.

Alibaba had Q1 revenue of $1.97B (+42% Y/Y), gross profit of $1.4B (+37%), and net income of $906M (+36%). The company already provided many Q1 details in a June F-1 filing. Yahoo Japan (OTCMKTS:YAHOF) had Q1 revenue of $1.06B (-6%), and net income of $311M (-10%).

$719M was spent on buybacks in Q2, up from $450M in Q1.

YHOO +1% AH. Q1 results, PR.

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Comments (2)
  • Cheesehusker
    , contributor
    Comments (410) | Send Message
     
    Does this stock have ANY value outside of the Ali Baba shares? Marissa Mayer is rapidly becoming the most overrated CEO since Carly Fiorina
    15 Jul 2014, 04:44 PM Reply Like
  • martell
    , contributor
    Comments (189) | Send Message
     
    dear seekingalpha.com can any one do a Article on Maker of low-cost Aakash tablets for Indian schools raises $28 million in ipo they just went public July 8 2014 on the Toronto stock Excnange stock symbol is DW the company is DataWind Inc. i saw a article said that how a Montreal company won the race to build the World"s cheapest tablet, can some one like mr.Frank holmes' or mr. doug young or mr.don dion would do a Article on Datawind inc it would be a Great Article for investor. thank you very much
    15 Jul 2014, 05:40 PM Reply Like
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