First, some observations summarized here:
- Verizon recently announced it'd be buying Yahoo's core business for about $4.83B in cash.
- In addition, Yahoo holds stakes in Alibaba and Yahoo! Japan, currently worth about $41B.
- In addition, the "Excalibur" patent portfolio not included in the Verizon acquisition is valued by PatentVue at $1B-$1.5B.
Those numbers sum to a bit over $47B. However, the current total value of Yahoo is just under $37B. Even if investors assigned zero value to the remaining patent portfolio and assumed the Verizon deal will fail completely and leave the core business valueless, that valuation is significantly less than the bundle of holdings. While the article frames this as an investment opportunity people seem to be missing, it seems unlikely that (a) a large number of sophisticated investors are just missing that math and (b) the article authors would prefer to just publish the information instead of trying to capture some value difference. This indicates there are really some significant negative factors included in the valuation. What are the big ones here?