Don’t Buy Yahoo USA Shares For Alibaba Nor Yahoo Japan.

Alibaba stock is worth $143.01 to Yahoo’s $54. But profits and revenue in China aren’t moved to the USA. So the junior trader will think they got an ‘in’ on Alibaba by buying it cheaper as Yahoo. But I repeat, Alibaba revenue stays in China. Yahoo USA has a 15% share in Alibaba, and 15% profit, not 15% revenue, that is needed to operate Alibaba. Yahoo USA the corporation will receive 15% of Alibaba profits, that it can add to its bottom line. It uses that 15% profit to pay off its own expenses. Even with that contribution from Alibaba profits Yahoo USA is losing money. Its the same arrangement with Yahoo USA’s 35% of Yahoo Japan. If Yahoo USA ever have to unload Alibaba and Japan, those companies get first dibs and buy back their share of those companies, not based on Yahoo USA stock, but with a cash exchange that Yahoo USA will add to its bottom line. So that Yahoo USA stock will stay around $54, holding new cash for its sale of Alibaba and Yahoo Japan, that it can add to its bottom line to pay off expenses. Which might still not be profitable. The shareholders own Yahoo USA, and Yahoo USA owns portions of Alibaba and Yahoo Japan, but shareholders do not own Alibaba or Yahoo Japan directly. Said another way, Yahoo USA shareholders own the revenue and expenses of Yahoo USA, not the revenue and expenses of Alibaba nor Yahoo Japan (of which Yahoo USA the corporate body owns 15% and 35% of profit, not even earnings nor revenue). They get their money after expenses are paid, like movie stars. Don’t buy Yahoo USA shares. Its like a movie star who owes the tax man and got screwed by the studio. Some thought it might be like 15% on rent but its more like 15% on profit on rent.