Alibaba (NYSE:BABA) is up 2.7% after beating FQ2 revenue estimates on the back of 54% Y/Y growth - it was driven by a 49% increase in GMV, and more than a 3x increase in mobile monetization rate. EPS was only in-line, as aggressive spending yielded an 890 bps drop in non-GAAP EBITDA margin.
Yahoo (YHOO +1.3%) is moderately higher following the numbers. Its remaining 384M-share stake in Alibaba has a current pre-tax value of $40.2B. SoftBank's (OTCPK:SFTBF) 797.7M-share stake has a pre-tax value of $83.4B.
The WSJ reports SoftBank (OTCPK:SFTBF) has tasked new Sprint CEO Marcelo Claure with "gathering information" on the Mexican telecom assets America Movil (AMX +0.4%) plans to sell to appease regulators.
AMX was reported last month to have contacted SoftBank (among other carriers) to gauge its interest in buying the assets. BofA has estimated a sale could fetch $15B, but a WSJ source says bidders are eying a ~$10B price.
AT&T has suggested it's looking to make an offer. Three weeks ago, Carlos Slim told Bloomberg the asset sale could extend beyond Mexico's eastern coast.
Fresh off taking a $250M stake in studio Legendary Entertainment, SoftBank (OTCPK:SFTBF) has bought DramaFever, a site that offers free (ad-supported) and subscription-based access to foreign movies and TV shows, much of it from South Korea. The price is undisclosed for now.
Re/code previously reported InterActiveCorp (NASDAQ:IACI) was thinking about buying DramaFever, and said it heard of price tags ranging from $80M-$140M.
The Legendary and DramaFever deals follow SoftBank's hiring of Google sales chief Nikesh Arora to be the conglomerate's vice chairman and Internet/media chief.
A new report has surfaced from The Hollywood Reporter stating that Japan's SoftBank (OTCPK:SFTBY) is in talks to acquire a minority stake in privately held movie studio Legendary Pictures. The publication says the talks have been going on for weeks.
The news comes following reports that SoftBank's discussions to buy Dreamworks Animation have cooled.
The WSJ says it "wasn't immediately clear" what led buyout talks between SoftBank (OTCPK:SFTBF) and Dreamworks (NASDAQ:DWA) to cool. The paper now reports the companies "could ultimately strike a deal other than an outright takeover ... for instance some kind of content partnership."
DWA -7.4% AH to $26.10. Shares rose 26% in regular trading on reports of acquisition talks featuring a $32/share offer.
The Alibaba catalyst in the rearview mirror, Bank of America and Bernstein both pull Buy ratings on Yahoo (NASDAQ:YHOO).
Softbank (OTCPK:SFTBF) tumbled 6.1% in Tokyo action overnight. "Part of the market used Softbank as an investment vehicle for Alibaba," says Jefferies' Atul Goyal. "And now that segment of the market doesn’t need to invest in it." Softbank owns 34% of Alibaba and its CEO said last week it has no intention of being a seller. Goyal reminds those selling Softbank today that Alibaba is just one of its investments, and Masayoshi Son has a number of other potential gems in the portfolio.
As Alibaba's (NYSE:BABA) largest stockholder, SoftBank (OTCPK:SFTBF) says it expects a gain of about ¥500B ($4.6B) from the Chinese company's listing in NY, after shares surged 38% on their first day of trade.
CEO Masayoshi Son says he would want to own more of Alibaba, although he reiterated that SoftBank was happy with its current 32% stake.
Alibaba (NYSE:BABA) opened at $92.70 and has quickly jumped to at $99, up 45.6% from a $68 IPO price. Its market cap stands at a whopping $246.6B (66x FY14 EPS), as investors bet the company's strong top-line growth (46% Y/Y in Q2) won't let up.
Yahoo (YHOO +1.2%) remains higher. With underwriters expected to exercise a 15% overallotment option, the company will be selling 140M shares through the IPO, good for pre-tax proceeds of $9.5B.
SoftBank's (OTCPK:SFTBF) 797.7M-share stake has a current pre-tax value of $79B.
America Movil (AMX +2.4%) has contacted potential suitors including AT&T (T +0.6%) and SoftBank (OTCPK:SFTBY, OTCPK:SFTBF), and perhaps BCE’s Bell Canada (BCE -0.1%) and China Mobile (CHL +1%), as it prepares to sell assets along the east coast of Mexico that could fetch as much as $17.5B, Bloomberg reports.
AMX is selling assets in its biggest market to appease antitrust regulators; the Mexico-based carrier, which commands 70% of the local wireless market and 80% of landlines, may get penalties revoked if it cuts market share below 50%.
Alibaba (Pending:BABA) has set a $60-$66 IPO price range. That spells a valuation range of $147.9B-$162.7B. The company is looking to offer 320.1M shares - 123.1M new shares, and 197M on behalf of existing holders. At the midpoint of the range, proceeds from the new shares would total $7.7B. (prospectus)
Yahoo (YHOO +1%) is obligated to sell up to 140M Alibaba shares at IPO time. At the midpoint, that would spell proceeds of $8.8B. Its total stake would be valued at $33B pre-tax, and SoftBank's (OTCPK:SFTBF, OTCPK:SFTBY) at $50.2B. Yahoo has moved higher on the news.
Earlier: Alibaba to reportedly start trading on Sep. 19
CNBC reports Alibaba (Pending:BABA) will price its IPO on Thursday, Sep. 18, and begin trading the next day. That fits with recent reports from the WSJ and NYT.
The NYT reports today Alibaba's roadshow will start in NYC on Monday. No word yet on the price/valuation range sought by the Chinese e-commerce giant - plenty of analysts have assigned valuations above $150B.
Yahoo (YHOO +1%) has ticked higher following the report.
The Nikkei speculates SoftBank (OTCPK:SFTBF) could make an offer for Vodafone (VOD +0.5%), given a Sprint/T-Mobile deal is off the table for now. Vodafone has turned positive after starting the day in the red.
Though Sprint/T-Mobile has been shelved, SoftBank just raised $3.9B in debt, a move viewed by many as a precursor to fresh M&A activity. Moreover, SoftBank will soon have a chance to monetize its 34.1% Alibaba stake (could be worth over $60B pre-tax following the IPO).
Nonetheless, Vodafone ($91B market cap) would be a very big fish for SoftBank ($87B market cap) to digest. This isn't the first time speculation about a deal between the carriers has emerged.
After setting a price range, Alibaba will reportedly kick off a 2-week roadshow (covering both Asia and the U.S.) ahead of an IPO the company hopes will take place during the week of Sep. 15.
Sources caution the Chinese e-commerce giant's plans could still change. The NYTpreviously reported Alibaba was planning an IPO "sometime after Labor Day." At one point, the company was rumored to be eying an early-August IPO.
Yahoo (YHOO +0.7%) continues to trade modestly higher.
In a revised F-1, Alibaba (Pending:BABA) discloses it had calendar Q2 revenue of $2.54B (+46% Y/Y), and net income of $1.99B (boosted by $1.1B in interest/investment income). Op. income was $1.1B (+27% Y/Y). Revenue growth accelerated from Q1's 39% clip, a figure that had disappointed some investors.
Q2 free cash flow was $1.71B. Sales/marketing spend +70% Y/Y to $195M; R&D +68% to $315M.
GMV was RMB501B ($81.6B), +17% Q/Q and +45% Y/Y (46% growth was seen in Q1). Mobile accounted for 32.8% of GMV (up from Q1's 27.4%), and mobile revenue more than doubled Q/Q to $400M.
Annual orders +14% Q/Q to 14.5B; annual active buyers +9% to 279M; annual active sellers +11% to 8.5M; mobile monthly active users (MAUs) +15% to 188M.
Alibaba's Taobao marketplace (focused on smaller merchants) had a Q2 GMV of RMB342B, +33% Y/Y. The Tmall marketplace (focused on larger merchants) had a GMV of RMB159B, +81%.
Yahoo (YHOO +0.3%) is up slightly following Alibaba's release, which might be the company's last earnings update before its IPO.