Yahoo! Inc YHOO shares are 7 percent higher in premarket trading after Alibaba Group Holding Ltd BABA reported better-than-expected earnings. Alibaba is indicated more than 10 percent higher ahead of the opening bell.
At yesterday's closing price, Yahoo's stake in Alibaba was worth roughly $23.28 billion. At today's open, the stake is worth $25.61 billion.
But, interestingly, the more than 7 percent gain in Yahoo has also increased the value of its other businesses. Yesterday, investors were valuing Yahoo at $15.82 billion outside of its Alibaba stake. At $44.60, its other lines of business are valued at $16.2 billion.
Yahoo still plans to move its stake in Alibaba into a tax-free spinoff, a move it announced in January. The company still holds a substantial stake in Yahoo Japan, worth roughly $9 billion. In April, Yahoo announced that it was considering cashing in its Yahoo Japan stake after hiring advisors to evaluate the move.
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