Yahoo! Reduces Its Alibaba Holdings

Yahoo! (YHOO) raised $4.3 billion by selling some of stake in Alibaba. Yahoo! announced that $3.65 billion is going to shareholders.

"This outcome is terrific for Yahoo. It generates liquidity to create substantial value for our shareholders, while retaining a meaningful amount in the company to invest in our future. Also, because we still own 23 percent of Alibaba's common stock, we have the opportunity to benefit from future upside when Alibaba IPOs." -- Marissa Mayer, Yahoo! CEO

I like that Yahoo! still owns 23% of Alibaba's common stock because Alibaba is a China-based Internet company.

How this $3.65 billion is going to be passed onto shareholders as yet to be announced, but it does work out to ~$3.09 per YHOO share.

YHOO closed yesterday at $15.86. 52-week range: $13.11 - $16.79. The news of the Alibaba sale was not "good" enough news to propel YHOO to a new 52-week.