Alibaba Group Decides to Repurchase 40% Stakes of Yahoo (NASDAQ:YHOO)
Alibaba Group Holding Ltd. reported on Sunday that it has decided to re-purchase Yahoo Inc.(NASDAQ:YHOO)’s 40 percent stake in the firm under a contract worth at least $7.1 billion, with provisions for Yahoo to probably sell the relax.
The weekend pronouncement comes around a year after the Chinese Internet key initiated steps to pare its relationship with the U.S. Web portal.
In a statement, according to the agreement, Yahoo would gross a minimum of about $7.1 billion, consisting of cash and $800 million in new Alibaba preferred stock.
Toward the Financial side Yahoo! Inc. (NASDAQ:YHOO) moved up 0.39% or +$0.12 to the trading at $15.42 following it hit intra day high level of $15.46. The total traded volume in the previous trading session was 12.55 million shares as compared to average 16.57million shares. Its fifty two week trading range was $11.09 – $16.99. The total market capitalization reached $18.88 billion.
The stock price was ahead its 52 week low price with 36.34% and it lagged behind -11.01% from its 52 week maximum mark. Stock price volatility for last month remained 0.13%. In its share capital, the company has 1.22 billion outstanding shares out of which 1.10 billion shares have been floated in the market. For now, stock ownership with company’s management remained 0.32%.
YHOO presented an optimistic weekly performance of 1.51% with respect to its rate of return and it remained 0.13% for the month. However, the performance for a quarter experienced a positive change of 2.73% and it slumped -5.69% for a year and its year to date performance remained in red with -4.40%.
Current stock price is in the upbeat territory taking into account of 20 days moving average with -1.77% and continued bullish run for 50 days moving average with -0.81%. Its earning per share for the past twelve months was $-9.39. Company’s beta coefficient was at 0.91. Beta measures the amount of market risk associated with market trade.
Turning towards the investors who viewing YHOO against Youku Inc (NYSE:YOKU) declined -1.83%, Yandex NV (NASDAQ:YNDX) lost -4.49%, AOL, Inc. (NYSE:AOL) slid -0.08%, Google Inc (NASDAQ:GOOG) surged 0.57%, Baidu.com, Inc. (NASDAQ:BIDU) which also increased 1.82% and Linkedin Corporation (NYSE:LNKD) fell -3.34%.