For the past year or so, Yahoo’s turnaround has been FROZEN in place because its board feels like it has to figure out a way to “unlock” the value of the company’s Asian assets for Yahoo shareholders. Yahoo owns big, multi-billion dollar stakes in two Asian Internet companies (Yahoo Japan in Japan and Alibaba in China). These are not considered “strategic” assets, so Yahoo is trying to sell its stakes back to the companies.
This is complicated to do because a normal sale would cost Yahoo 40% in taxes, knocking a couple billion off its market cap. So Yahoo is working on something called a cash-rich split. The Asian companies will actually buy some other operating business (WebMD? LivingSocial?) and then TRADE it to Yahoo for its Asian investments.
The truth is, until this happens, Yahoo is kind of stuck in neutral.
So when will it happen?
Here’s where we get to the most deperessing thing you will read about Yahoo today.
Kara Swisher says the Asian assets deal won’t close until…………2013.