Yahoo's Alibaba Stake Has Lost Over $11 Billion In Value Since Spinoff Was Announced

By Tomi KilgoreMarketWatch Pulse

Yahoo Inc.'s spinoff of its large stake in Alibaba Group Holding Ltd. can't happen fast enough for investors, as that 384 million share stake is worth about $1.4 billion less in premarket trade Wednesday. Alibaba's stock slumped 5.8% in premarket trade after the Chinese e-commerce giant reported fiscal first-quarter results. Since Yahoo announced it's plan to spin off of its Alibaba stake, the value of that stake has dropped by more than $11 billion, from $39.53 billion at the Jan. 27 closing price of $102.94, to $27.97 billion at the recent premarket price of $72.85. Yahoo's stock shed 4.6% in premarket trade. It has tumbled 25% since Jan. 27 through Tuesday, while the S&P 500 has gained 2.7%. The spinoff was originally expected to occur in the fourth quarter. Alibaba's stock is set to open Wednesday at the lowest price in its 11-month history.

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