Does Yahoo Have a Right to Exist in 2016?

Does Yahoo Have a Right to Exist in 2016?Yahoo CEO Marissa Mayer is in the hot seat; some investors are calling for her to step down, others want the company broken up and sold for parts, still others are concerned that the value of their investment is less than zero.

First and foremost, Yahoo is not worthless. Financial engineers will argue about how best to maximize shareholder value, but with its ~$5.5 billion of net cash, its 15 percent share of Alibaba (worth approximately $30 billion), its share of Yahoo Japan (worth approximately $8.6 billion) and about $1 billion of EBITDA from its core businesses (which some analysts estimate to have a value between $2.2 and $4 billion), Yahoo has a non-zero value. And, I can assure you, it will be unlocked in favor of the shareholders…..read more

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