Tomahawk, WI 08/18/2014 (Basicsmedia) – The much awaited Alibaba IPO that was expected to take place on the 8th of August continues to wage anxiety among investors on Wall Street as the date has now been pushed to September 16, according to Bloomberg’s, David Ingles. Alibaba was supposed to announce its earnings on the 29th of this month but has postponed the same after it detected some accounting issues that it needs to sort out first. The much awaited IPO will allow Yahoo! Inc. (NASDAQ:YHOO) to sell some of its stake in Alibaba and return maximum value to its shareholders.
Yahoo! Inc. (NASDAQ:YHOO) is set to divest part of its 24% stake in Alibaba and may hang onto the rest as it tries to benefit a great deal from the world’s largest internet market. Yahoo has already stated that it will return at least half of the money that it recoups from the offering to its shareholders.
“[…] it’s the film unit it’s called Alibaba pictures its listed here in Hong Kong. It was formerly’ known as China Vision media they bought it up $800 million I think, so they own 60% of that. […] On Friday what they said was ‘you know we can’t release our results in time.’ They were supposed to release on 29th this month, and the reason being they found possible accounting issues non-compliant treatments or flaws prior accounting periods and perhaps some insufficient provisioning,” said Mr. Ingles.
Yahoo! Inc. (NASDAQ:YHOO) is awaiting the IPO with much anticipation as it will provide it with the opportunity to recoup some of the money it used to acquire its stakes. The IPO will also be of much benefit to Yahoo shareholders who have consistently hung on CEO, Marissa Mayer, who is trying to revive the company’s sales.
Alibaba has already admitted to the fact that its IPO might take longer than expected as they may experience some challenges along the way. The Company still has to file with the SEC in order for investors to know what they are buying into.
“I think in the latest sets of amendments they gave basically said that you know ‘we don’t have a lot of experience, integrating lots of these deals. […] they’ve already given some heads up we may actually see some of these things come up. Now Will it delay the IPO again, for the SEC at least what they do is they want to make sure that you are properly disclosing before you go to your roadshow so just people know what they are buying into,” said Mr. Ingles.