Yahoo $2 Billion Buyback Is Larger Than It Seems

Yahoo announced late on Thursday that it plans to buy back an additional $2 billion in shares.

Read more: Alibaba Stake and the Yahoo New Buybacks (NASDAQ: YHOO) (NYSE: BABA) – 24/7 Wall St. http://247wallst.com/technology-3/2015/03/27/yahoo-2-billion-buyback-is-larger-than-it-seems/#ixzz3Vb8hmmSw
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Yahoo MarqueeYahoo! Inc. (NASDAQ: YHOO) is looking to return even more money to its shareholders. After announcing a $2 billion stock buyback, and considering that the largest part of this company’s market value is its stake in Alibaba Group Holding Ltd. (NYSE: BABA), its newest stock buyback plan is much larger than it seems.

Yahoo announced late on Thursday that it plans to buy back an additional $2 billion in shares. This is in conjunction with its previously set buyback plan already in place. Under the previous buyback plan, there was roughly $726 million remaining, and it was set to expire at the end of 2016.

Previously, Yahoo! announced that it will spin off its stake in Alibaba later in 2015. The goal was to unlock value for Yahoo shareholders, and to do so with a more attractive tax profile for its investors than if Yahoo would have sold the shares itself and then repatriated that capital.

Yahoo owns approximately 384…

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