Yahoo! Inc. (NASDAQ: YHOO) announced that it will buy-back up to $3 billion worth of its common shares ahead of the company’s pending deal with Verizon Communications to provide liquidity to shareholders that are looking to sell prior to the deal. According to CNBC, shares of Yahoo have a 15 percent stake in the Chinese e-commerce company Alibaba. Shares on Tuesday morning were up nearly 1.5 percent at around $50.60 a share.
Yahoo expects to pay between $50.79 - $44.74 per share based on its calculations, Alibaba’s share value and timing of the buyback. Verizon had previously agreed to purchase Yahoo’s core internet properties last year for a total of $4.83 billion in cash. The company had lowered their offer by $350 million in February after two massive cyber-attacks on the internet company that compromised user accounts.
After the deal with Verizon occurs, Yahoo will be renamed Altaba, a company that will use its stake in Alibaba and its stake in Yahoo Japan as its primary assets.