Market Overview

Altaba Announces Preliminary Results of Tender Offer


Altaba Inc. ("Altaba" or the "Fund") (NASDAQ:AABA) announced today the
preliminary results of its tender offer to purchase up to 195,000,000
(approximately 24%) shares of its common stock, which expired at 5:00
p.m., New York City time, on August 8, 2018.

Based on the preliminary count by Computershare Trust Company, N.A., the
exchange agent for the tender offer, a total of 360,358,790 shares of
the Fund's common stock were properly tendered and not properly
withdrawn. These shares represent approximately 45.02% of the Fund's
issued and outstanding shares as of August 8, 2018.

In accordance with the terms and conditions of the tender offer and
based on the preliminary count by the exchange agent, which indicates
that the tender offer was oversubscribed, it is expected that the number
of shares the Fund will accept for payment will be prorated so that the
Fund purchases a total of up to 195,000,000 shares properly tendered and
not properly withdrawn before the expiration date, at an offer
consideration per share consisting of 0.35 American Depositary Shares
("Alibaba ADSs") of Alibaba Group Holding Limited, a Cayman Islands
company ("Alibaba"), which are held by the Fund in its investment
portfolio, less any Alibaba ADSs withheld to satisfy applicable
withholding taxes and subject to adjustment for fractional Alibaba ADSs
and $8.93 in cash, at an aggregate cost of approximately 68,250,000
Alibaba ADSs and $1,741,350,000 in cash, excluding fees and expenses
relating to the tender offer. Based on the preliminary information
provided by the exchange agent, but not yet accounting for "odd lot"
priority and the conditional tender provisions of the tender offer, it
is estimated that the proration factor for the tender offer will be
approximately 54.11%. The aggregate offer consideration represents
approximately 92.04% of Altaba's current estimated net asset value per
share and approximately 74.31% of Altaba's most recently published net
asset value per share, adjusted to reflect the closing stock price of
Alibaba ADSs and the shares of common stock of Yahoo Japan Corporation
on such date and before giving effect to deferred taxes on unrealized
appreciation, in each case calculated as of August 8, 2018.

The Fund determined the expected cash portion of the offer consideration
by multiplying the previously announced Alibaba VWAP of $178.5246 by

The number of shares expected to be purchased, the expected aggregate
offer consideration and the expected proration factor are preliminary
and subject to change. The final results of the tender offer, including
the proration factor, will be announced promptly following the
completion by the exchange agent of the confirmation process. Payment
for the shares accepted for purchase pursuant to the tender offer, and
the return of all other shares tendered and not purchased, will occur
promptly thereafter.

Altaba may, in the future, decide to purchase more shares of its common
stock. Any such purchases may be on the same terms as, or on terms that
are more or less favorable to stockholders than, the terms of the tender
offer. Rule 13e-4(f)(6) under the Securities Exchange Act of 1934, as
amended (the "Exchange Act"), however, prohibits the Fund and its
affiliates from purchasing any shares, other than pursuant to the tender
offer, until at least ten business days after the expiration of the
tender offer, except pursuant to certain limited exceptions provided in
Rule 14e-5 under the Exchange Act.

J.P. Morgan Securities LLC served as dealer manager for the tender
offer, Innisfree M&A Incorporated is serving as information agent for
the tender offer and Computershare Trust Company, N.A. is serving as
depositary for the tender offer. For more information about the tender
offer, please contact Innisfree M&A Incorporated at (877) 750-9497.

About Altaba Inc.

Altaba is an independent, publicly traded, non-diversified, closed-end
management investment company registered under the Investment Company
Act of 1940. The Fund's assets primarily—but not entirely—comprise two
investments: the first a substantial position in Alibaba, which has
become one of the world's largest online retailers, and the second in
Yahoo Japan Corporation, now a leading Japanese internet company.

Prior to June 16, 2017, Altaba was known as "Yahoo! Inc." Altaba was
created from Yahoo! Inc. after the sale of its operating businesses, at
which time Yahoo! Inc. reorganized as an investment company, was renamed
Altaba Inc., and began trading under the Nasdaq ticker symbol AABA.

for more information.

Forward-Looking Statements

This press release contains "forward-looking statements," including
statements as to the amount, timing and manner of the tender offer,
which reflect Altaba's current views with respect to, among other
things, future events and financial performance. You can identify these
forward-looking statements by the use of forward-looking words such as
"outlook," "believes," "expects," "potential," "continues," "may,"
"will," "should," "seeks," "approximately," "predicts," "intends,"
"plans," "estimates," "anticipates" or the negative versions of those
words or other comparable words. The inclusion of this forward-looking
information should not be regarded as a representation by the Fund or
any other person that the Fund's future plans, estimates or expectations
will be achieved. Such forward-looking statements are subject to risks
and uncertainties and assumptions relating to the Fund's portfolio
investments, operations, financial results, financial condition,
business prospects, liquidity and planned transactions. Factors which
could have a material adverse effect on the Fund's operations, future
prospects and value of the Fund's shares include, but are not limited to:

  • the risk that Altaba may not be able to complete the tender offer and
    purchase the shares pursuant to the tender offer or otherwise;
  • the risk that Altaba may not be able to achieve the benefits
    contemplated by the tender offer;
  • the possibility that the value of Altaba's investment assets decline,
    including the equity securities of Alibaba it holds in its investment
    portfolio, and certain other investments;
  • the less liquid nature of certain investments;
  • risks with respect to the sufficiency of the Fund's available sources
    of liquidity to meet operating requirements;
  • risks with respect to the future outcome of legal proceedings in which
    the Fund is involved;
  • the possibility of incurring certain tax liabilities, including
    certain state and foreign taxes, and the availability of a foreign tax
    credits with respect to Altaba's federal income tax;
  • the possibility that a "blockage discount" may not be available for
    purposes of determining Altaba's U.S. federal income tax liability on
    the exchange of Alibaba ADSs pursuant to the tender offer;
  • risks with respect to the Fund's contractual arrangements and
    relationships with third parties, including creditors and
    counterparties to certain call spread agreements imposing obligations
    on the Fund that hinder the Fund's ability to effectuate Altaba's
  • the possibility that Altaba will pursue other transactions or other
    actions, including continuing to sell shares of Yahoo Japan
    Corporation consistent with the Fund's previously announced intent,
    additional exchange offers of Alibaba ADSs (with or without cash) for
    shares, additional sales of Alibaba ADSs for cash, additional
    repurchases of shares either through tender offers or open market
    purchases using the proceeds from sales of Alibaba ADSs and/or shares
    of Yahoo Japan Corporation, converting to an open end fund to permit
    redemptions of shares in-kind for Alibaba ADSs and adoption of a plan
    of liquidation and dissolution followed by one or more distributions
    of cash and/or other assets pursuant to such plan; and
  • Altaba's intention to retain sufficient assets to be able to satisfy
    or provide for its contingent liabilities before making any additional
    distributions to stockholders.

These factors should not be construed as exhaustive and should be read
in conjunction with the other cautionary statements that are included in
the Offer to Purchase. The Fund does not undertake any obligation to
publicly update or review any forward-looking statement, whether as a
result of new information, future developments or otherwise. The
foregoing should be read in conjunction with the other cautionary
statements that are included herein and elsewhere, including the risk
factors described under the caption "Principal Risks" in the Fund's Form
N-CSR for the fiscal year end December 31, 2017 filed with the SEC and
other documents Altaba files with or furnishes to the SEC. Any
forward-looking statements made in this press release are qualified by
these cautionary statements, and there can be no assurance that the
actual results or developments the Fund anticipates will be realized or,
even if substantially realized, that they will have the expected
consequences to, or effects on, the Fund or the Fund's business or
operations. Because the Fund is an investment company, the
forward-looking statements and projections contained in this press
release are excluded from the safe harbor protection provided by
Section 21E of the Securities Exchange Act of 1934, as amended.

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