Alibaba Group Holding Ltd'sIPO-BABA.N upcoming public offering will give Yahoo Inc billions of dollars for a potential shopping spree that investors hope will jumpstart its comeback. But with numerous holes to fill and soaring tech company valuations, Yahoo will have to make tough choices with any acquisitions.Yahoo is expected to sell about $9.5 billion in stock of the Chinese e-commerce company. After giving at least half back to investors and paying taxes, Yahoo's cash stockpile, currently $4.2 billion, may swell by $3.1 billion. That is not a lot in Silicon Valley these days."They are not in a position to make huge acquisitions," said Jean Yu, assistant portfolio manager of the $2.8 billion ClearBridge Value Trust fund, which owns Yahoo shares. Yu expects the new proceeds to be used for deals around several hundred million dollars each.Yahoo's revenue growth has stalled in recent years as its once-hot Web portal and email service have lagged rivals. Key areas in need of repair include Yahoo's mobile offerings and an advertising system that doesn't deliver the precise targeting available from rivals like Google Inc and Facebook Inc , investors say.
Facebook, Inc. (Facebook), is engaged in building products to create utility for users, developers, and advertisers. Shares of FB traded higher by 0.46% or $0.35/share to $76.43. In the past year, the shares have traded as low as $43.55 and as high as $78.36. On average, 37148400 shares of FB exchange hands on a given day and today's volume is recorded at 28706620.
Google Inc. (Google), is a global technology company. Shares of GOOG traded higher by 0.83% or $4.82/share to $584.77. In the past year, the shares have traded as low as $502.80 and as high as $604.83. On average, 1541200 shares of GOOG exchange hands on a given day and today's volume is recorded at 1691044.
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