That could just be investors / analysts being stupid (either the ones valuing alibaba too highly, or valuing Yahoo too low). But Yahoo doesn't make a ton of money off its core business.
It's still quite possible for them to turn it around. They are really very good at what they, and they have the eyeballs.
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When I last heard, Yahoo seemed to have a net value of less than zero (http://www.bloombergview.com/articles/2014-03-17/is-yahoo-s-... ), once you exclude their minority stakes in alibaba and Yahoo Japan.
That could just be investors / analysts being stupid (either the ones valuing alibaba too highly, or valuing Yahoo too low). But Yahoo doesn't make a ton of money off its core business.
It's still quite possible for them to turn it around. They are really very good at what they, and they have the eyeballs.
Since Alibaba doesn't pay them dividends, owning a share of it has no effect on profit & loss.