Is Yahoo! Inc. (YHOO) About to Break Up Company & Sell Internet Assets?


This afternoon, after the market closed, reports began to emerge that the board of directors at Yahoo! Inc. (NASDAQ:YHOO) are considering breaking up the company and selling it’s internet assets.

The Wall Street journal reported today that the company is considering selling assets such as Yahoo Mail, its sports and news sites, among other web properties. These are assets which certainly could be worth billions of dollars to media companies or even private equite firms or telecoms. Additionally, the company is deciding whether or not to spin off other assets such as Alibaba Holding Group Ltd. worth approximately $30 billion.

According to the Wall Street Journal, both options remain on the table and the company could just simple sell everything and return the capital to shareholders.

Shares jumped a staggering 7.06 percent or $2.38 in after hours trading today.The stock decreased 0.30% or $0.1 during the last trading session, hitting $33.71. About 11.02 million shares traded hands. YHOO has declined 22.11% since April 29, 2015 and is downtrending. It has underperformed by 20.49% the S&P500.

Out of 23 analysts covering Yahoo! Inc. (NASDAQ:YHOO), 16 rate it “Buy”, 0 “Sell”, while 7 “Hold”. This means 70% are positive. $62 is the highest target while $32 is the lowest. The $42.45 average target is 25.93% above today’s ($33.71) stock price. Yahoo! Inc. was the topic in 55 analyst reports since July 22, 2015 according to StockzIntelligence Inc. Oppenheimer maintained the stock on October 21 with “Outperform” rating. RBC Capital Markets maintained it with “Sector Perform” rating and $42 target price in an October 21 report. Cowen & Co maintained the shares of YHOO in a report on October 21 with “Market Perform” rating. Morgan Stanley maintained the firm’s rating on October 21. Morgan Stanley has “Overweight” rating and $49 price target. Finally, Jefferies maintained the stock with “Buy” rating in an October 21 report.

The institutional sentiment decreased to 1.03 in Q2 2015. Its down 0.01, from 1.04 in 2015Q1. The ratio fall, as 92 funds sold all Yahoo! Inc. shares owned while 232 reduced positions. 83 funds bought stakes while 251 increased positions. They now own 635.68 million shares or 1.40% less from 644.72 million shares in 2015Q1.

Indaba Capital Management L.P. holds 27.75% of its portfolio in Yahoo! Inc. for 1.69 million shares. Owl Creek Asset Management L.P. owns 10.70 million shares or 22.57% of their US portfolio. Moreover, Stonehill Capital Management Llc has 21.86% invested in the company for 1.33 million shares. The United Kingdom-based Davide Leone & Partners Investment Co Llp has invested 12.48% in the stock. Courage Capital Management Llc, a Tennessee-based fund reported 550,000 shares.

Yahoo! Inc. is a technology company