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Anorak | Yahoo! Is Now Officially Worth Less Than Nothing, Say Matt Yglesias and Matt Levine

Yahoo! Is Now Officially Worth Less Than Nothing, Say Matt Yglesias and Matt Levine

by | 19th, April 2014

- In this March 3, 1997 file photo, Yahoo co-founders David Filo, left, and Jerry Yang, right, hold up a fish prop at Yahoo headquarters in Santa Clara, Calif. Yang is leaving the struggling company. The surprise departure, announced Tuesday, comes just two weeks after Yahoo Inc. hired former PayPal executive Scott Thomson as its CEO. (AP Photo/Paul Sakuma, File)

 

AS two different people have now noted, Matt Yglesias and Matt Levine , Yahoo is now officially valued at less than nothing. Which, for a company that has a $40 billion price tag on the markets is a pretty strange thing to try and say. But it also happens to be true.

The conundrum is explained by the fact that there are really two different things here. One is the business that makes up Yahoo, the other the company that owns that business. And that company owns not just the business Yahoo but also good sized chunks of two other businesses, Yahoo Japan and Alibaba, a Chinese internet company (not unlike Amazon). If we take the value of Yahoo the company and subtract from it the value of the stake in Alibaba then we get a negative number. Take away the value of that stake in Yahoo Japan and it

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Posted: 19th, April 2014 | In: Money, News, Technology Comment | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink