Shares of Yahoo! Inc. (NASDAQ:YHOO) jumped more than 1.9% in the early afternoon as fresh reports reached the market about Alibaba’s initial public offering. Although Yahoo is down more than 10% this year, investors are excited about the cash windfall from the looming Alibaba IPO because of Yahoo’s significant stake in the Chinese giant e-commerce company. On CNBC’s “Squawk Alley,” Kayla Tausche and the crew looked at Alibaba’s IPO.
Yahoo! Inc. (NASDAQ:YHOO) reportedly owns more than 20% stake in Alibaba, and the IPO will put so much money into its wallet because it is expected to offer a portion of its stake for sale in the IPO.
Tausche also stated that Alibaba IPO is entering the home stretch, although more details will be available in the coming weeks, especially concerning the roadshow timing. There also appears to be a number of scenarios about the IPO date. However, the company did provide a date for the big event.
“There was a report overnight that Alibaba would look to trade on September 16. Of course, we have been expecting that with the delay, of course, it happened last week that that would be in the back half of September […],” said Tausche.
She also said that there are multiple scenarios on the table concerning the Alibaba IPO and reported that sources have weighed in on the matter with various dates, with some pushing it back to as late as September 23.
“One of those scenarios does see Alibaba trading on September 16. Another of those scenarios sees it trading on 23rd. It could choose to do a longer roadshow or start that roadshow later. Of course, that is the process where the company’s management would go on the road and talk to investors […],” she stated.
The crew also noted that Alibaba needed to work harder on social to ward off competitors like Tencent that are not willing to give it a break. It needs to protect that value, especially now that Yahoo! Inc. (NASDAQ:YHOO) is counting on its IPO\s success.
The Alibaba IPO gives so much hope to Yahoo! Inc. (NASDAQ:YHOO)’s investors for various reasons. Some believe that the money that Yahoo! generates from the sale of its stake would boost its acquisition streak, while others consider that those money might be returned to Yahoo! shareholders in form of buybacks or dividends. There have also been rumors of Alibaba one day acquiring Yahoo!
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