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Here are Tuesday’s top stories:
Alibaba.Com Limited (ALBCF.PK) is said to be near to closing on an $8 billion financing play, which will include a combination of loans, common shares (at a $35 billion valuation), convertible preferred shares at a $43 billion valuation, and will let the company repurchase half of Yahoo’s (NASDAQ:YHOO) 40 percent investment for $7.1 billion. That amount represents more than a 14 times purchase price return for Yahoo, which acquired the entire stake for $1 billion seven years ago. In addition, Alibaba generated first half revenue of more than $1.8 billion, which marks a more than 60 percent rise year-over-year.
Don’t Miss: Levinsohn Isn’t Leaving Yahoo Empty-Handed.
YouTube (NASDAQ:GOOG) was pleased with the results of its original $150 million investment in professional video channels, so it intends to do another one, this time for $200 million. The top video site reports that it has already secured more than $150 million in current-year advertiser commitments linked to the channels, while it profits from the higher ad rates devoted to professional content.
Suntech Power Holdings Company, Ltd. (NYSE:STP) shares plummet for the second straight day, after the company concedes that collateral promised to it for guaranteeing a $662 million investment might be nonexistent. Making a bad deal worse is that the investment firm that promised the collateral was managed by a former Suntech sales representative. Class-action suits have begun, and the public relations disaster brings new questions concerning the governance standards of Chinese American depository receipts.
Facebook (NASDAQ:FB) shares are having yet another dismal day, as they are now down more than 40 percent from their $38 initial public offering price. The cause of Tuesday’s slump seems to be an upgrade (no typo here) by Carlos Kirjner at Bernstein, to Market Perform. However, the analyst also values the company’s advertising business at $19 per share, and everything else at a mere $4 a share. Further, he’s concerned over a decline in European ad rates, plus a share lock-up expiration starting in August, which should increase Facebook’s float by 276 percent by November.
Don’t Miss: Facebook is PLUMMETING!
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