Yahoo! Inc. (NASDAQ:YHOO) will sell its stake in Alibaba Group Holding Ltd as it underwent IPO. According to reports the internet giant have 24% stake in the Chinese e-commerce giant. As the Chinese firm is preparing itself to go public, the US company to sell some of its stake in the firm during IPO.
But the US Internet company has decided that it will sell limited shares in IPO than originally settled from its stake in Alibaba, which has cheered its investors. After selling less of its stake in Chinese e-commerce giant, the company is looking forward to expand its core online advertising business through many internet firms.
After emergence of this news the company shares traded positively in afterhours trading. That indicates if the Chinese company gain after IPO, it would directly affect the US Company. Yahoo! Inc. (NASDAQ:YHOO) shares down -1.82% to $33.38 in last trading session.
In the third quarter the company main business of selling search advertising and online display will be soft under hard competition from Google Inc (NASDAQ:GOOG) and Facebook Inc (NASDAQ:FB).
Year-over-year the company prices of display ads decrease 7%, but the selling of display ads rose approximately 1%. The company as revenue comprises of 39% of the company entire revenue which is increased 3% year-over-year.
Marissa Mayer Chief Executive of the company is trying to increase user traffic to the frm’s different Websites and this increase in users traffic will indicated in the company growth in the coming year. According to the statement of CEO the company mobile products boost 15% to 390 million as compared to last year.
According to the company recent quarter result its Q3 net income was 28 cent on each share to $297 million, in contrast to $2.64 on each share to $3.16 billion or $2.64 in Q3, 2012. While the company’s results included increase of $2.8 billion from the sale of a part of its stake in Alibaba Group.
Leave a Reply