There is an odd-sounding name that is confronting many internet users such as Altaba Vista and Jessica Altaba which really is nothing unique but only the new name by which what was formerly YAHOO will be known. A new giant in the telecom sector known as Oath will now own the core businesses of Yahoo which are now on Verizon. It will also include AOL even the on Wall Street the shares of Yahoo are still trading.
Verizon or VZ, TECH30 bought most of the digital properties that were owned by Yahoo such as Flickr, Tumblr, Yahoo Mail as well as the website for news. However, Yahoo did no relinquish the stakes it holds on the e-commerce giant from China known as Alibaba or BABA TECH30 and the Japanese operations known as YAHOF or Yahoo Japan.
Starting from Monday, the shares that were formerly being traded under Yahoo changed both hands and name and began trading as Altaba under the symbol of AABA, or if you can think alternatively, then you can see Alibaba in the making in the trading.
Due to the 4% rise in the stock of Alibaba on Monday, there was a corresponding rise in the shares of AABA by 4%. If only Yahoo had been wise to use the AABA symbol instead, it would have made a lot of money, but as it is commonly said – that is plenty of water under the bridge. The performance of the stock known as Altaba/Yahoo has been underperforming compared to Alibaba this year so if one wishes to go into business with Alibaba, you can just go ahead, although there are yet no good reasons for doing that because of its founder and owner, Jack Ma, is enigmatic.
The shares of Yahoo remaining in Alibaba are trading in a holding company known as Altaba, but Alibaba cannot buy the shares back to regain control because that would cause a massive tax bill which would be as high as 36.5%. That is what Yahoo claimed when it made the regulatory filing last year. Technically it means that Yahoo will still be in control of the shares being traded through the holding company. So, apart from the name change, Altaba is acting as some kind of neutral stock that is floating on no-, man’s land. It is interesting to see how future shares will be traded because direct ownership is not given to anyone except having a stake in a public company that already exists. If you guess that the new corporation known as Verizon (AOL and Yahoo) will take the market share of digital advertising away from FB, TECH30 (Facebook) and Google (GOOG) then buy Verizon’s shares.
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