Investors have flocked to Yahoo, seduced by its stake in what promises to be the face of the next internet boom: soon-to-go-public Alibaba, heading for a valuation of up to $200bn.
Shares in the ageing dotcom darling have climbed 75 per cent in 12 months as expectations about Alibaba’s valuation have soared, setting the Chinese ecommerce group up to be one of the most highly valued new public companies to date.
But as the initial public offering approaches, shareholders are debating what its 24 per cent stake could be worth to Yahoo, and how much shareholders could take home.
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