

Uber, AirBNB, and DropBox are each worth more than Yahoo - sixQuarks

Uber, AirBNB, and DropBox are valued at $10 billion each.<p>Yahoo has a market cap of $33 billion.  At first glance, it seems like Yahoo is worth more than all 3 combined.  But here&#x27;s the kicker:<p>Yahoo owns 23% of AliBaba, which will debut as the biggest IPO in history,  with an estimated conservative market cap of $100 billion.  That means Yahoo&#x27;s stake is worth $23 billion.<p>Even with that $23 billion windfall, investors are only valuing Yahoo at around $10 billion max.
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mcintyre1994
There was an interesting article [0] on Yahoo! about a month ago - which
valued Yahoo! Core negatively. They have a large stake in Yahoo! Japan worth
$10b at the time that article was written. Using your alibaba market cap
(maybe too conservative, that article had $150b a month ago) that'd put them
at about worthless.

The article calls it a conglomerate discount based on holding multiple
companies with public price points, and claims alibaba/yahoo! Japan are
probably deeply discounted due to tax. But it must be strange to an investor -
the core ad business is profitable and it's $1b quarterly revenue (from the
article) is imo probably a safer bet than at least 2 of them three $10b
companies. Depending on alibabas ultimate IPO valuation Yahoo! could continue
having a really bizarre valuation locking billions of dollars away for a
while.. Which is at least something them 3 won't have to deal with.

[0][http://www.theatlantic.com/business/archive/2014/04/the-
pecu...](http://www.theatlantic.com/business/archive/2014/04/the-peculiar-
worthlessness-of-yahoo/360851/)

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sixQuarks
Interesting, thanks for the link. Could Yahoo be a good buy considering its
"book value"?

