So, what will Yahoo do with that money? In a release announcing the deal, ”Yahoo! intends to return substantially all of the after-tax cash proceeds to shareholders following the closing of the transaction.”
In other words, Yahoo intends to buy back shares. This might make Yahoo stock look good in the short term, but that’s not what the troubled Internet brand should do.
Watch our quick video explainer below to find out what Yahoo should do with its Alibaba cash: