New China challenges for Yahoo
Yahoo! Inc.’s toehold in China is under threat by a widening rift with Alibaba Group Holding Ltd., the e-commerce provider it partly owns and that analysts say may account for three-fourths of its market value.
“It gives pause,” said Ryan Jacob, portfolio manager of the Jacob Internet Fund in Los Angeles. “Yahoo’s Asian assets are really the main reason that we have it as a large position in our fund.”
Other investors, including David Einhorn’s Greenlight Capital Inc., have bought Yahoo because of its stake in Alibaba. The holding helps it benefit from demand in China, the world’s No. 1 Internet market, with 457 million users.