AABA

Altaba Inc.

TMT, Event Driven/Special Sit


Presented:05/31/2017
Price:$50.32
Cap:$48.47B
Current Price:$19.63
Cap:$10.20B

Presented

Date05/31/2017
Price$50.32
Market Cap$48.47B
Ent Value$39.14B
P/E RatioN/A
Book Value$37.00
Div Yield0%
Shares O/S963.17M
Ave Daily Vol7,347,522
Short IntN/A

Current

Price$19.63
Market Cap$10.20B
Yahoo!, Inc. is a guide to digital information discovery, focused on informing, connecting, and entertaining users through its search, communications, and digital content products. It operates through the following geographical segments: Americas; Europe, Middle East, and Africa (EMEA); and Asia Pacific. The company was founded by Jerry Chih-Yuan Yang and David Filo in January 1994 and is headquartered in Sunnyvale, CA.

Please note, on 6/13/17 Yahoo! Inc. (YHOO) changed its company name and ticker to Altaba Inc. (AABA). The content of this idea will make reference to the original company name and ticker symbol.

Publicly traded companies mentioned herein: Alibaba Group Holding Ltd (BABA), Yahoo! Inc (YHOO), Verizon Communications Inc (VZ), Yahoo Japan Corp (4689 JP)

Highlights

With Yahoo!’s sale of its core operating business to Verizon set to close in mid-June 2017, and its stock is to be removed from the S&P 500 (due to the conversion to a closed-end management company), the presenter sees an attractive setup and risk/ reward for a long position - in YHOO - today at $50. The combination of a $3 billion buyback, 15% stake in Alibaba (BABA), 35% stake in Yahoo Japan, and 29-30% discount to NAV should provide support to the stock’s value. He is “lightly hedged” via a small short position in BABA, but is comfortable overall with the long exposure on the position ahead of “the most telegraphed index removal, ever”. If his assessment of the setup and risk/ reward are accurate, there is likely not more than 5% downside for shareholders (i.e., to a 33% discount, which is the widest the stock has traded since the deal was announced), and upside could be 20-25% depending on how the value of the Yahoo Japan and Alibaba stakes are ultimately realized.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.