Where does Yahoo's money come from after frequent acquisitions?

According to foreign media reports, the recent Yahoo seems to be particularly interested in acquisitions, since last October, the company has finalized a series of mergers and acquisitions. One of the best-known acquisitions, of course, was a 1.1 billion dollar cash purchase of Tumblr, the world's largest light blogging site. Some of the other acquisitions were paid for by Yahoo shares, mostly for the sake of the company's reserve talent.

At present, Yahoo has made a takeover offer to Hulu, the video website, and officially joined the bid for the video site. A source said Yahoo's offer to Hulu was priced at 6.8 billion dollars. At the same time, it was said that Yahoo was also negotiating two other potential acquisitions, the amount of which was $150 million trillion-$ 200 million trillion.

Yahoo recently a series of acquisitions, I believe many people have retained a huge doubt, that is, "Yahoo where so much money to start mergers and acquisitions?"

In fact, Yahoo still sits on a lot of cash even after spending 1.1 billion of dollars in cash to buy Tumblr. It is reported that before Yahoo announced the acquisition of Tumblr, the company's major shareholders, but also the United States think-tank founder Eric Jackson (Eric Jackson) has revealed that he still has as much as 5.6 billion U.S. dollars in balance sheet assets. Shortly after Yahoo announced its takeover, Ken Tumblr, the company's chief financial officer, announced that Alibaba, the Chinese internet group, had redeemed Yahoo's preferred shares of $838 million worth.

"Yahoo had previously owned 40% per cent of Alibaba, but the company now holds only 24% of its shares after it sold most of its shares to Alibaba Group last year," said Goodman. At the time, Alibaba made a loan to Yahoo to buy back the shares, but now the former has paid up to $838 million trillion. ”

That is to say, the company had about 6.4 billion dollars in cash before Yahoo bought Tumblr. Even after spending $1.1 billion in cash to buy Tumblr, the company is still sitting on more than 5 billion of dollars in cash for other acquisitions. In addition, given that Alibaba is expected to make an IPO in the next 12 months, Yahoo's Ali shares will be more liquid and can be cashed in when the company needs cash.