Seeking Alpha Seeking Alpha Portfolio App for iPad Profile| Send
Message| (75)    Last Friday, Yahoo announced it was putting
itself up for sale through a “leaked” memo. As an investor, my
first thought always is, can I profit from such an announcement?
Potential profit is the difference between the current price per
share of 13.42, to one’s fundamental evaluation, X. X=
valuation/shares outstanding, which is 1.26 billion. If I
believe X is greater than the current pps, I will buy. So how
does one appropriately value Yahoo!? I argue that one should
take an asset based approach, where the business is equal to the
sum of its parts. Each segment has to be adjusted to fair market
value, what someone is willing to pay. Below is a simplified
version of my valuation.   1) 43% primary equity interests in
Alibaba. Recently valued at 32b, which = 13.76 billion  2) 35%
equity interest in Yahoo! Japan (4689:JP). Market Cap is 1.324
trillion Yen, which = 17.35B USD. 35%= 6.07b  3) Core. 7x ttm
eps. 7x (.881 eps x 1.26b sh